What is a first-time homebuyer loan?
The term "first-time homebuyer loan" is often used to describe mortgage options that may be a good fit for people purchasing their first home. These loan options may offer lower down payment requirements, flexible qualifications, and access to homeownership resources that help buyers get started. Depending on your situation, these can include FHA, VA and USDA loans. None of them are only for first-time buyers.
Who counts as a first-time buyer?
Buyers purchasing their first home
Purchasing your first home is a major milestone. We'll help you understand your options, estimate your costs, and prepare for each step of the process.
Anyone who hasn’t owned in a while
Many assistance programs define a first-time buyer as someone who hasn't owned a primary residence in the past few years.
First-generation buyers
If you'll be the first person in your immediate family to own a home, you're not alone. Some programs provide additional benefits to first-generation buyers.
More first-time homebuyer loan options
There isn't one mortgage path designed exclusively for first-time buyers. Instead, buyers can choose from several proven loan options depending on their goals, finances, and eligibility.
First-time homebuyer loan benefits and requirements
See what a first-time loan can do for you, and what it asks of you, before you talk numbers.
Less money down
Several loan options let you buy with less up front than many people expect.
Assistance with upfront costs and the down payment
Many first-time home buyer assistance programs can help with upfront costs, with eligibility based on factors such as your location and profession.
Someone to explain every step
Your loan officer walks you through each cost and each document, in plain words.
Steady income
Lenders look at your income and how long you've had it. Your loan officer will review your situation.
Credit history
Requirements vary by loan type. Some loans have more room for credit that's still building.
Money for closing
You'll need funds for the down payment and closing costs, though assistance may cover part of it.
Compare side by side
First-time homebuyer loans vs conventional loans
Both can get you into a home. The difference is how much you need up front and how flexible the guidelines are.
Conventional loans
Best suited for buyers with established savings and strong credit.
Down payment
- Typically higher up front
Credit flexibility
- Often works best for borrowers with strong credit profiles
Down payment help
- May not include assistance-related features
First-time homebuyer loans
Lower barriers to entry designed to help you get your keys sooner.
Down payment
- Lower down payment options
Credit flexibility
- More flexible options
Down payment help
- May pair with assistance
Tools & Calculators
Use our mortgage calculators to estimate payments, compare options, and make a more informed decision before your next move.
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Whether you’re exploring your options, already have a loan with Fairway, or need help finding the right place to go, connect with a loan officer to point you in the right direction.
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Many programs consider you a first-time buyer if you haven't owned a home in the past three years.
It depends on the loan. Several options let you put down much less than many people expect, and assistance programs can help with the rest.
The loan is your mortgage. Down payment assistance is extra help, like a grant or a second loan, that you pair with it.
Yes. FHA loans are a common choice for first-time buyers, especially with a smaller down payment or credit that's still building.
Some programs require you to complete a homebuying course, most often when it comes to getting down payment or closing cost assistance.
It depends on the type of loan. Whether you have a little saved or a lot, strong credit or a score you're still building, there's likely a program for you. Your loan officer will review your credit and show you which options fit.
Your local Fairway loan officer will contact you, ask about your goals, and walk you through your options. All without any commitment.
Ready to see what your first home could look like?
It starts with a conversation. Tell us about your plans. Your local Fairway loan officer knows your market inside and out and will reach out to walk you through your options.
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