First-time buyers
First-time home buyer loans, explained step by step.
Buying your first home raises a lot of questions at once: how much you can afford, how much to save, and which loan fits. Dan helps first-time buyers in Southern California, across the U.S., and buyers relocating from Asia sort through the options before they start touring.
Talk with Dan about first-time home buyer loansMay be a good fit if…
- You have not owned a home in the past three years.
- You want to understand down payment and closing-cost options before you shop.
- You are relocating to the U.S. and buying your first American home.
What to know about first-time home buyer loans
Low-down-payment options
Some conventional programs allow as little as 3% down for qualifying first-time buyers, and FHA loans allow 3.5% down with a qualifying credit score.
Down payment assistance
State and local programs may offer grants or deferred second loans. Availability, income limits, and terms vary by program and location.
Pre-approval first
A pre-approval reviews income, assets, and credit up front so you know your price range and can make a stronger offer.
Questions worth asking
- What monthly payment feels comfortable — not just what I qualify for?
- How much should I keep in savings after closing?
- Do I qualify for any down payment assistance programs?
Frequently asked questions
How much down payment does a first-time buyer need?
It depends on the loan. Some conventional programs allow 3% down for qualifying buyers and FHA loans allow 3.5% with a qualifying credit score. Putting less than 20% down usually means paying mortgage insurance.
Who counts as a first-time home buyer?
Many programs define a first-time buyer as someone who has not owned a home in the past three years, but each program sets its own rules.
How long does pre-approval take?
Once your documents are ready, a pre-approval can often be completed within a few business days. Timing depends on your situation and the lender.
Related reading
Your next step
Want to see how this applies to you?
Dan The Truong, NMLS ID 2115125. Information is for educational purposes only and is not a commitment to lend or an offer to extend credit. Eligibility, rates, and terms depend on credit, income, property, and underwriting, and may change without notice. Loans are offered only in states where Dan The Truong is licensed — see NMLS Consumer Access.