First-Time Home Buyer Loans

There is no single first-time buyer loan. There are several programs built for buyers with limited savings or a shorter credit history, including low down payment conventional loans and FHA loans. My job is to show you which ones you qualify for and what each one costs.

Justin Lazzaro, NMLS #1229453 | Reasy Financial, LLC, NMLS #2446155 | Licensed in Arizona, Pennsylvania, Florida, and Texas

Who these programs fit

Most first-time buyers have the income to own a home. The hurdle is usually cash to close or a thinner credit file.

Buyers with limited savings

Several programs allow a small down payment, and many let the entire amount come from a family gift.

Buyers with moderate income

Some conventional programs reduce mortgage insurance costs for borrowers under an income limit that is set by the home's location.

Who they usually do not fit

These programs are for a home you will live in. Second homes and rentals need a different loan.

How qualifying works

1

We start with a conversation

Income, monthly debts, savings, and credit. You will know your price range and your cash to close before you shop.

2

We match the program

Low down payment conventional, FHA, VA, or USDA, with or without down payment assistance. I compare them side by side.

3

You shop with a prequalification

When you find a home, the full application, documents, and appraisal follow.

You generally count as a first-time buyer if you have not owned a home in the past three years. Some programs require a short homebuyer education course. A prequalification is not a loan approval or a commitment to lend.

How it compares to other options

These are the programs first-time buyers use most often.

Loan programs first-time buyers use most often
ProgramDesigned forWorth knowing
Low down payment conventionalBuyers with established credit and a small down paymentMortgage insurance can usually be removed later
FHA loansBuyers with a shorter or bruised credit historyMortgage insurance often stays for the life of the loan
VA loansEligible veterans, service members, and surviving spousesNo monthly mortgage insurance
USDA loansBuyers in eligible rural and suburban areas under an income limitProperty location and household income both have to qualify
Down payment assistanceBuyers who qualify on income and credit but are short on cashOften a second lien with its own rules

Three things to know before you apply

1

A small down payment has a cost

Less money down means mortgage insurance and less equity at the start. Sometimes it is still the right move, and we will look at both paths.

2

Cash to close is more than the down payment

Closing costs, prepaid taxes and insurance, and reserves add up. A seller may agree to help, but that is negotiated and never guaranteed.

3

The payment is more than principal and interest

Property taxes, homeowners insurance, mortgage insurance, and any HOA dues belong in your budget from day one.

Guidelines change. I confirm current requirements with the lender before quoting anything. You can estimate a payment with the mortgage calculator.

Common questions from first-time buyers

Short answers to common questions. Program rules vary by lender, so treat these as general guidance, not a loan decision.

Who counts as a first-time buyer?

Generally anyone who has not owned a home in the past three years. Some programs have exceptions, so ask before you rule yourself out.

Can my down payment be a gift?

On most of these programs, yes, from a family member or another eligible donor, documented with a gift letter.

Do I need perfect credit?

No. Requirements differ by program and by lender, and I can tell you where you stand before you apply.

Should I get prequalified before I look at homes?

Yes. It tells you your price range and shows sellers and agents that you have talked with a lender.

Is there a class I have to take?

Some programs require a homebuyer education course when every borrower is a first-time buyer. It is usually online.

Where do you work with first-time buyers?

I am licensed in Arizona, Pennsylvania, Florida, and Texas, and I compare programs across multiple wholesale lenders.

Ready to talk it through?

Pick a time that works for you. We'll go over your goals and next steps, no pressure, just a conversation. Prefer to call or text instead? Reach me directly at (412) 638-4982, or book a quick Zoom if that's easier.