How much do I need for a down payment on my first home?

As little as 0% with VA or USDA loans, 3% with conventional loans, or 3.5% with FHA loans. The average first-time buyer puts down about 8%. Many state programs offer additional down payment assistance grants.

What credit score do I need to buy a house?

The minimum is 620 for conventional loans, 580 for FHA (3.5% down), or 500 for FHA (10% down). However, a score of 740+ gets the best rates. Each 20-point increase can save 0.125-0.25% on your rate.

How long does it take to buy a house?

From offer to closing, typically 30-45 days. The entire process including preparation, preapproval, and house hunting usually takes 3-6 months for a first-time buyer.

First-Time Homebuyer Guide 2026: Everything You Need to Know

Is 2026 a Good Year to Buy Your First Home?

Despite elevated mortgage rates, 2026 presents opportunities for first-time buyers. Inventory has loosened from the extreme lows of 2021-2023, giving buyers more negotiating power. Down payment assistance programs are more generous than ever, and multiple loan programs accept as little as 0-3.5% down.

Step 1: Check Your Financial Readiness

Before house hunting, get honest about your finances. Pull your free credit reports from AnnualCreditReport.com and check your FICO score. Most mortgage programs require a minimum 620 score, though FHA accepts 580 (or 500 with 10% down).

Calculate your debt-to-income ratio by dividing total monthly debts by gross monthly income. Most lenders cap DTI at 43-50%. If yours is too high, focus on paying down credit cards and other debts before applying.

Step 2: Save for Down Payment and Closing Costs

The myth that you need 20% down keeps many renters from buying. In reality, conventional loans require just 3% down ($10,500 on a $350,000 home), FHA loans 3.5% ($12,250), and VA/USDA loans offer zero down. Budget an additional 2-5% for closing costs.

Look into down payment assistance programs in your state — many offer grants or forgivable second mortgages of $5,000-$15,000+ for first-time buyers.

Step 3: Get Preapproved

A preapproval letter shows sellers you are a serious, qualified buyer. The lender will verify your income, assets, employment, and credit history. Get preapproved with 2-3 lenders to compare rates — all hard credit inquiries within 14-45 days count as a single inquiry for scoring purposes.

Step 4: Find Your Home and Make an Offer

Work with a buyer's agent (typically free to you — the seller pays the commission). Once you find the right home, your agent will help you make a competitive offer based on comparable sales, market conditions, and the property's condition.

Step 5: From Offer to Closing

After your offer is accepted, you will go through inspections, appraisal, underwriting, and final walkthrough before closing. The process typically takes 30-45 days. At closing, you will sign the loan documents, pay closing costs, and receive the keys to your new home.