Your First Home Is
Waiting for You

Discover what it takes to qualify, which loan fits your situation, and how the process works.

The Truth About Five Big Homebuying Myths

What Most Borrowers Think

You need 20% down

You need 750+ credit

Your debt has to be near zero

You need years at the same job

Only W-2 income counts

BUT THE REALITY IS

You could purchase a home for as little as zero down**

Between FHA, conventional, VA and down payment assistance programs, you have more options than you might think.***

580 qualifies

FHA's minimum is 580. Conventional starts at 620. Your score sets your rate, but it's rarely what locks you out.

Up to 43% debt-to-income works

Lenders compare monthly debts to gross income. 43% is FHA's ceiling. Student loans count in the math, but they rarely disqualify you.

2 years in the same field

Same field counts, not same employer. Gaps for school, illness, or career changes are workable with documentation.

1099, self-employed, and gig all qualify

Self-employed and 1099 income work with two years of tax returns. Gig income with a consistent history qualifies too.

Check Today's Rates

Live rates across the loans first-time buyers use most.

Loan Options Built for
First-Time Buyers

Pick the situation that sounds most like you, and we’ll show you the loan made to handle it.

Get In With 3.5% Down

For first-time buyers with limited down-payment savings or a light credit history, an FHA loan may be for you. It's backed by the federal government, available in all 50 states, and can be paired with down payment assistance programs that can help drop your out-of-pocket costs even further.

Down Payment

3.5%

Credit Floor

580+

Mortgage Insurance

MIP Required

Pair With

Down Payment Help

Buy with $0 Down

Available for eligible active-duty service members, reservists and Veterans. No down payment or private mortgage insurance required, with competitive interest rates backed by the U.S. Department of Veterans Affairs. Plus, we can help you request your required Certificate of Eligibility.

Down Payment

$0

Credit Floor

580+

Mortgage Insurance

None

Eligibility

Active-duty, reservists and Veterans only

Turn Strong Credit Into a Better Rate

Conventional fixed-rate loans are great options for first-time buyers with stronger credit. The strength of your score determines your rate, which remains fixed across the life of the loan.

Down Payment

5%

Credit Floor

620+

Mortgage Insurance

Can be removed once you have 20% equity

Best For

Strong Credit

Fold the Renovation Into Your Mortgage

A loan that first-time buyers eyeing a fixer-upper can access. One mortgage covers the purchase price plus the renovation budget, all with FHA's low entry bar. Best for homes needing $5,000 or more in repairs that would otherwise require a separate construction loan.

Down Payment

3.5%

Credit Floor

580+

Renovation

Included

Min Repairs

$5K+

Find a Local Branch

Need help? One of our 1,500+ local loan officers is ready to answer your questions.

Get Answers from Your Local
Loan Officer

​

The Journey to Your First Home

From your first conversation to receiving your house keys, here’s what you can expect.

1

Talk with a Loan Officer

Share your goals, ask questions, and get guidance on your home financing options.

2

Get Pre-Approved

Submit your documents for a fully underwritten pre-approval so you can shop with confidence and understand how much you may be able to borrow.

3

Find The Right Home

Work with your real estate agent, tour homes, and make an offer when you find the one that’s right for you.

4

Complete Your Loan Application

Once your offer is accepted, we’ll finalize your application, collect any remaining documentation, and prepare your loan for closing.

5

Close And Move In

Review and sign your closing documents, get your keys, and start enjoying your new home.

What First-Time Buyers Are Saying

50,000+
Reviews
NerdWallet best-of awards 2026 badge
USA Today
America’s Best Customer Service in Financial Services List 2026
Bankrate - Best mortgage lenders in California for 2026
Best mortgage lenders in California for 2026
Yahoo! Finance
Best for Closing Speed September 2026

Learn More About the Homebuying Process

Explore a curated list of articles from the loanDepot Learning Center, hand-picked to support first-time buyers.

Ready to See How Much You Could Qualify For?

Answer a few questions and we’ll show you how much you can borrow, and which loans we recommend.

Frequently Asked Questions

For most lender and government programs, you count as a first-time homebuyer if you haven’t owned a primary residence in the past three years. That’s the federal HUD definition that opens the door to FHA-backed programs, down payment assistance, and many state grants. If you owned a home five years ago and have been renting since, you’re a first-time buyer again under this rule.

A few program-specific exceptions widen it further. Single parents and displaced homemakers often qualify regardless of past ownership. Buyers who only previously owned a manufactured home, or who owned jointly with a former spouse, may also qualify. Your loan officer can confirm which programs you’re eligible for based on your specific history and current situation. 

 

A buyer’s market means more homes are for sale than there are buyers, which gives you room to negotiate. You can often offer below asking, ask for closing-cost credits or repairs, and take a few extra days to decide without losing the home.

A seller’s market is the opposite. Inventory is tight, multiple offers are common, and sellers pick the offer with the fewest conditions. For a first-time buyer that usually means tighter pricing, larger earnest money deposits, and faster decision-making. Knowing which one you’re in shapes how you write your first offer and how much wiggle room you have. 

Family members can give you money toward your down payment or closing costs, and most loan programs (FHA, VA, Conventional) accept gifted funds with the right documentation. You’ll need a signed gift letter stating the money is a gift, not a loan, and naming the giver, the relationship, and the amount.

For Conventional loans, gift funds typically need to come from an immediate family member, fiancé, or domestic partner. FHA is more flexible and accepts gifts from extended family, employers, and certain charitable groups. The exact documentation and sourcing rules differ by program, so get the list from your loan officer before any member of your family or extended family gifts you money for a downpayment. 

It depends on the loan you choose, but it may be less than you think. For an FHA loan with 3.5% down on a $300,000 home, you’d need about $10,500 for the down payment. A conventional loan for a $300,000 home with a 5% down payment would be $15,000 plus closing costs.  

Most lenders recommend keeping an additional 3 to 6 months of reserves on hand for monthly mortgage payments and unexpected costs after move-in. Down payment assistance programs can lower your down payment, and seller credits or lender credits can reduce closing costs. Use our affordability calculator to see what’s possible with your current and future planned savings.

It depends on the loan you choose, but the floor is lower than most first-time buyers think. For an FHA loan with 3.5% down on a $300,000 home, you’d need about $10,500 for the down payment. Conventional with 5% down on the same price puts you at about $15,000 down plus closing costs on top.

Most lenders recommend keeping an additional 3 to 6 months of reserves on hand for monthly mortgage payments and unexpected costs after move-in. Down payment assistance programs can lower the down payment side, and seller credits or lender credits can cut closing costs. The affordability calculator above can show you exactly what’s possible from your current savings pace. 

loanDepot.com, LLC is not acting on behalf of or at the direction of VA/ HUD/FHA or the federal government.

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