Program highlights
- Down payment assistance, 100% (Conv, FHA, VA, USDA)
- FHA $100 down
- Conventional up to 97% LTV / 105% CLTV
- Good Neighbor Next Door
- FHA, VA, and USDA minimum score of 580
- Temporary buydowns
- Lock & Shop and TBD approvals
Who counts as a first-time home buyer?
For most loan programs, a first-time buyer is someone who has not owned a home in the past three years. That means many people who owned a home years ago can qualify again. Some down payment assistance programs use their own definition, so we check each one.
How it works
Most first-time buyers do not need 20% down. The right loan depends on your credit, income, savings, and the home you want. Here are the four options we use most:
- 100% down payment assistance: available on agency loans (conventional, FHA, VA, and USDA). Assistance can cover the down payment and sometimes part of closing costs, usually as a second lien or grant. Program rules, income limits, and repayment terms vary.
- FHA $100 down: a very low down payment option, typically tied to HUD-owned homes. FHA also allows scores down to 580 and manual underwrites.
- 97% conventional: conventional financing up to 97% loan to value, or up to 105% combined when paired with assistance. Private mortgage insurance can usually be removed later.
- Good Neighbor Next Door: a HUD program for law enforcement officers, pre-K through 12th grade teachers, firefighters, and EMTs buying eligible HUD homes in revitalization areas.
Veterans and service members should also look at VA loans, and buyers in eligible areas should look at USDA. Both typically allow no down payment.
A simple plan for your first purchase
- Get pre-approved first. It takes about 10 minutes to apply, and we typically issue a pre-approval letter within 24 hours. You will know your price range before you tour.
- Know your cash to close. Besides the down payment, closing costs commonly add a few percent of the loan amount. Sellers can often contribute, and a temporary buydown paid by a seller or builder can lower your payment for the first year or two.
- Protect your credit. Once you apply, avoid new credit cards, car loans, or large purchases until after closing.
- Shop with confidence. Our Lock & Shop and TBD approval options let you shop with more certainty in a competitive market.
Who it fits
These options fit buyers with steady income who are ready to stop renting but have not saved a large down payment. They also fit buyers with credit in the high 500s to mid 600s who assume they cannot qualify yet. We would rather tell you exactly what to fix and when, than have you guess.
What you need to apply
- Pay stubs and two years of W-2s or tax returns
- Two months of bank statements
- A valid ID
- Gift letters, if family is helping with funds
- Proof of occupation for Good Neighbor Next Door
How we help in Austin
Austin area home prices make the down payment the biggest hurdle for most first-time buyers. We compare every option side by side, including down payment assistance available in your county, and explain the tradeoffs in plain language. We work closely with local Realtors from Georgetown to Buda, and we lend in 7 states.
Additional terms and conditions apply. Not all loan types are compatible with this product. Subject to underwriting conditions. Not a promise to make a loan. All borrowers must qualify.
First-Time Home Buyer Loans: common questions
How much do I need to buy my first home?
Less than most people think. Conventional loans go up to 97% loan to value, FHA typically needs 3.5% down, FHA $100 down is available on certain HUD homes, and VA and USDA typically allow zero down. Down payment assistance can cover some or all of the down payment. You will still need to plan for closing costs, which sellers can often help with.
Am I a first-time buyer if I owned a home before?
Possibly. Most programs define a first-time buyer as someone who has not owned a home in the past three years. So if you sold a home more than three years ago, you may qualify again. Some down payment assistance programs use their own definitions and income limits, so we check the specific rules for each program you are considering.
What credit score do I need as a first-time buyer?
It depends on the loan. FHA, VA, and USDA go down to a 580 score with our team, and manual underwrites are available on those programs. Conventional requires a 600 score when you put less than 20% down. Down payment assistance programs can set their own minimums. We review your credit and tell you which programs fit today.
How does down payment assistance work?
Down payment assistance provides funds for your down payment and sometimes closing costs, usually as a second lien, a forgivable loan, or a grant. We offer 100% down payment assistance options on conventional, FHA, VA, and USDA loans. Each program has its own rules for income, repayment, and how long you must live in the home, and we explain them clearly.
How long does it take to get pre-approved?
The application takes about 10 minutes online, and we typically issue a pre-approval letter within 24 hours once we have your documents. After you are under contract, most loans close in 21 to 30 days. Getting pre-approved before you tour homes means you know your price range and can write a strong offer quickly.