---
title: "First-Time Home Buyer Loans — Find the Lowest Rate Across 100+ Lenders"
description: "First-time home buyer loans through 100+ wholesale lenders. FHA from 3.5% down, VA $0 down, conventional 3% down. No broker fee. 26-day close. Call (844) 241-7720."
author: "PierPoint Mortgage"
date: "2026-06-30"
tags: ["first-time home buyer loans"]
canonical: "https://pierpointmortgage.com/first-time-homebuyer-loans/"
last_updated: "2026-09-20"
---

# First-Time Home Buyer Loans — Find the Lowest Rate Across 100+ Lenders

**By PierPoint Mortgage** | June 30, 2026

First-time home buyer loans through 100+ wholesale lenders. FHA from 3.5% down, VA $0 down, conventional 3% down. No broker fee. 26-day close. Call (844) 241-7720.

---

> **Quick answer:** First-time home buyer loans through PierPoint Mortgage put your borrower profile in front of 100+ wholesale lenders who compete for your loan instead of one bank handing you a single rate. FHA from 3.5% down, VA from $0 down, conventional from 3% down, $0 broker fee, 26-day average close. Call (844) 241-7720.

★★★★★ 4.9/5 from 152 Reviews● First-Time Buyer Specialist● $0 Cost to Borrower

Written by [Shannon Swartz](https://pierpointmortgage.com/our-team/) · NMLS #112844 · 20+ Years in Mortgage Lending · PierPoint Mortgage LLC

[See What I Qualify For](https://shannonswartz.zipforhome.com/LoanApplication/Contact?Language=E&IsStart=Y)[Call (844) 241-7720](tel:8442417720)

3.5%Min FHA Down

$0VA Down

26Day Avg Close

100+Lenders

THE FIVE PROGRAMS

## Every First-Time Buyer Program Compared Side by Side

First-time home buyer financing is not one product — it is five distinct programs, each with its own qualification rules, minimum down payment, and ideal borrower profile. The bank you walk into typically offers two of them and steers you toward whichever one earns them the most. PierPoint shops all five programs across 100+ wholesale lenders so the qualifying option that costs you the least wins. Here is exactly what each one looks like in 2026 pricing.

### FHA Loan

3.5% Down580 Credit

Federal Housing Administration insurance lets lenders approve borrowers with credit scores as low as 580 and down payments as small as 3.5 percent. Gift funds for the entire down payment are allowed. Mortgage insurance is required for the life of the loan unless you refinance.

[EXPLORE FHA LOANS →](https://pierpointmortgage.com/fha-loans/)

### VA Loan

$0 DownNo PMI

Active-duty service members, veterans, and surviving spouses qualify for VA financing with zero down payment, no monthly mortgage insurance, and rates typically 0.25% to 0.5% below conventional. The VA funding fee can be financed into the loan.

[EXPLORE VA LOANS →](https://pierpointmortgage.com/va-loans/)

### USDA Loan

$0 DownRural Areas

The USDA Rural Development program backs $0-down loans for homes in eligible rural and suburban areas — which covers roughly 91 percent of the US land mass and includes many small towns and exurbs. Income limits apply (typically 115% of area median).

[EXPLORE USDA LOANS →](https://pierpointmortgage.com/usda-loans/)

### Conventional 97

3% Down620 Credit

[Fannie Mae](https://www.fanniemae.com/homeready) and [Freddie Mac](https://sf.freddiemac.com/working-with-us/affordable-lending/home-possible) offer 3%-down loans (HomeReady and Home Possible) specifically built for first-time buyers earning at or below 80% area median income. Mortgage insurance cancels at 78% loan-to-value — unlike FHA, which sticks for life.

[EXPLORE CONVENTIONAL →](https://pierpointmortgage.com/conventional-loans/)

### State DPA Programs

Down Payment AssistanceForgivable

Every state runs at least one Down Payment Assistance program for first-time buyers. Programs like Georgia Dream, CalHFA MyHome, Florida Hometown Heroes, and MSHDA give grants or forgivable second mortgages that stack with FHA or conventional. Many are forgiven if you stay in the home 5-10 years.

SEE DPA BY STATE →

### Jumbo First-Time Buyer

10% DownHigh-Cost Areas

In high-cost markets (San Francisco, Los Angeles, Seattle, parts of Florida), first-time buyer loans above the conforming limit ($766,550 in 2026) require jumbo programs. Several wholesale lenders allow 10% down on jumbo first-time buyer files — conventional banks usually require 20%.

[EXPLORE JUMBO LOANS →](https://pierpointmortgage.com/jumbo-loans/)

### Five Programs. One Best Fit for You.

The right program saves $200-400/month vs the wrong one. Shannon picks the right one in a 5-minute call.

[SEE MY PROGRAM](https://shannonswartz.zipforhome.com/LoanApplication/Contact?Language=E&IsStart=Y)[CALL (844) 241-7720](tel:8442417720)NMLS #112844 · No credit pull required

THE REAL COST

## What a $350,000 First Home Actually Costs Each Month

The advertised rate is not the monthly payment. Mortgage insurance, property taxes, homeowners insurance, and HOA fees stack on top of principal and interest — and they vary dramatically by loan program. Here is the apples-to-apples breakdown for a $350,000 first home purchase, comparing all five programs on identical credit (720 FICO), identical property (median US home), and a 6.5% market rate.

| Program | Down Payment | Loan Amount | P&I | MI | Est. Total PITI |
| --- | --- | --- | --- | --- | --- |
| FHA 3.5% | $12,250 | $337,750 | $2,134 | $216 | $2,775 |
| Conventional 3% | $10,500 | $339,500 | $2,145 | $255 | $2,825 |
| VA 0% (Eligible) | $0 | $350,000 | $2,212 | $0 | $2,637 |
| USDA 0% (Eligible) | $0 | $350,000 | $2,212 | $102 | $2,739 |
| Conventional 20% | $70,000 | $280,000 | $1,769 | $0 | $2,194 |

The cheapest monthly payment goes to the borrower who can put 20% down — but the borrower who actually has $70,000 in cash to put down is rarely the first-time buyer who needs the program in the first place. For most first-time buyers, the real comparison is between FHA, Conventional 3%, and VA (if eligible). The right answer depends on credit score, available cash, and where you plan to live in 5-7 years.

### When FHA Wins

FHA wins when your credit score is 580-679. Conventional pricing punishes credit under 680 hard — mortgage insurance can run 1.5x to 2x what FHA charges in that score range. FHA also wins if your down payment is coming entirely from gift funds (relatives, employers, or DPA programs) since FHA accepts 100% gifted down payment while conventional limits gift funds at the 3% minimum.

### When Conventional Wins

Conventional wins when your credit score is 700+ and you plan to refinance or sell within 5-7 years. Conventional mortgage insurance drops off automatically at 78% loan-to-value, so when home values appreciate or you pay down the loan, the MI disappears without a refinance. FHA mortgage insurance is permanent unless you refinance into conventional — which costs $4,000-6,000 in closing costs.

### When VA Wins

VA wins every time for an eligible borrower. Zero down, no monthly mortgage insurance, and the lowest rate of any program. There is no scenario where an eligible VA borrower should choose FHA or conventional over a [VA loan](https://pierpointmortgage.com/va-loans/). The only catch is the VA funding fee — 1.4% to 3.6% of the loan amount — which most borrowers finance into the loan.

THE MISTAKES

## The Six Mistakes That Cost First-Time Buyers Thousands

Every mortgage broker who closes 100+ first-time buyer loans per year sees the same six mistakes repeat. Each one is preventable with 5 minutes of upfront conversation — and each one costs the buyer real money. These are the ones Shannon flags every week.

- ### Letting your bank lock the rate before shopping

 Most buyers shop the house for months and shop the loan for an afternoon. By the time they walk into the bank, they are emotionally committed to closing on a specific property by a specific date — and the bank knows it. The bank quotes a rate, the buyer takes it. That single decision typically costs $30,000-60,000 over the life of the loan vs the wholesale rate available the same day.
- ### Skipping the homebuyer education course

 HUD-approved homebuyer education courses are required for several DPA programs and lower the mortgage insurance premium on [Fannie Mae HomeReady](https://pierpointmortgage.com/conventional-loans/) loans by 0.125% — worth roughly $360/year on a $350,000 loan. The course takes 6-8 hours online and costs $50-99. Skipping it to save the afternoon costs $11,000 over a 30-year loan.
- ### Using gift funds without a proper gift letter

 Down payment gift funds from parents are allowed on every first-time buyer program. But the gift letter requirements are strict — the donor must sign that the funds are not a loan, prove the source with bank statements, and the funds must be deposited in the borrower’s account 60+ days before closing or sourced with a paper trail. Files get held up at underwriting for missing gift letter language constantly.
- ### Opening or closing credit accounts during underwriting

 Once the credit pull happens, do not open any new accounts (store cards, auto loans, furniture financing) and do not close existing accounts until after closing. A new tradeline can drop your credit score 20-40 points and trigger a re-underwrite that delays closing by 2-3 weeks. A closed account can change your credit utilization and have the same effect. Wait until the keys are in your hand.
- ### Underestimating closing costs

 Down payment is not the only cash needed at closing. Lender fees, title insurance, escrow setup, appraisal, prepaid interest, and tax/insurance reserves run 2% to 5% of the loan amount on top of the down payment. On a $350,000 home with 3.5% FHA down, that means $7,000-17,500 in additional closing costs. Many first-time buyer programs allow seller-paid closing costs up to 6% of the loan — negotiate this into the offer.
- ### Not asking about state DPA programs

 Every state has at least one Down Payment Assistance program. Most banks do not mention them because the programs add paperwork and slow closings by 5-10 days. A $10,000 forgivable second mortgage saves the buyer $10,000 in upfront cash and is forgiven if they stay in the home 5-10 years. Borrowers who never asked about DPA pay full freight — the lender does not volunteer the information.

### Six Mistakes. None of Them Have to Be Yours.

Shannon flags every one of these in the first call before they cost you a dollar.

[START MY APPLICATION](https://shannonswartz.zipforhome.com/LoanApplication/Contact?Language=E&IsStart=Y)[CALL (844) 241-7720](tel:8442417720)NMLS #112844 · No credit pull required

DOWN PAYMENT ASSISTANCE

## Find Your State’s First-Time Buyer Program

PierPoint is licensed in 15 states and shops every state’s Down Payment Assistance program against the wholesale lender network. Click your state to see the specific program available, how much assistance you can stack on top of your FHA or conventional loan, and what the income limits look like.

[Alabama — Step Up](https://pierpointmortgage.com/first-time-homebuyer-loans/alabama/)

[California — MyHome](https://pierpointmortgage.com/first-time-homebuyer-loans/california/)

[Colorado — CHFA](https://pierpointmortgage.com/first-time-homebuyer-loans/colorado/)

[Connecticut — CHFA Time To Own](https://pierpointmortgage.com/first-time-homebuyer-loans/connecticut/)

[Florida — Hometown Heroes](https://pierpointmortgage.com/first-time-homebuyer-loans/florida/)

[Georgia — Georgia Dream](https://pierpointmortgage.com/first-time-homebuyer-loans/georgia/)

[Louisiana — LHC](https://pierpointmortgage.com/first-time-homebuyer-loans/louisiana/)

[Maine — MaineHousing First Home](https://pierpointmortgage.com/first-time-homebuyer-loans/maine/)

[Michigan — MSHDA](https://pierpointmortgage.com/first-time-homebuyer-loans/michigan/)

[North Carolina — NC Home Advantage](https://pierpointmortgage.com/first-time-homebuyer-loans/north-carolina/)

[Oklahoma — OHFA Gold](https://pierpointmortgage.com/first-time-homebuyer-loans/oklahoma/)

[Oregon — Oregon Bond](https://pierpointmortgage.com/first-time-homebuyer-loans/oregon/)

[Pennsylvania — PHFA Keystone](https://pierpointmortgage.com/first-time-homebuyer-loans/pennsylvania/)

[Virginia — VHDA Granting Freedom](https://pierpointmortgage.com/first-time-homebuyer-loans/virginia/)

[Washington — WSHFC Home Advantage](https://pierpointmortgage.com/first-time-homebuyer-loans/washington/)

YOUR DOC CHECKLIST

## Exactly What You Need to Have Ready Before Applying

Most first-time buyers think the hard part is finding the house. The hard part is actually pulling together the documentation. Wholesale lenders need the same six categories of documents every time. Have these ready before the first phone call and your file moves from pre-approval to clear-to-close in 14 days instead of 30.

### The 6 Document Categories Every First-Time Buyer Needs

- **Income proof** — Last 2 years W-2s, last 30 days of pay stubs, last 2 years federal tax returns. Self-employed: add 2 years business returns and YTD P&L.
- **Asset proof** — Last 2 months of bank statements for every account (checking, savings, brokerage). All pages. No screenshots — official PDF downloads.
- **ID + Social** — Driver’s license or state ID, Social Security card. VA borrowers add DD-214 (Certificate of Discharge).
- **Gift letter package** — If using gift funds: signed gift letter, donor’s bank statement showing the funds, and a paper trail of the wire/transfer into your account.
- **Rental history** — 12 months of canceled rent checks OR a verification of rent letter from your current landlord. This becomes part of your credit profile.
- **Homebuyer education certificate** — Required for several DPA programs and reduces MI on HomeReady. Complete the course at [CFPB’s Owning a Home portal](https://www.consumerfinance.gov/owning-a-home/) before applying.

The biggest delay in first-time buyer files is missing documents. Every back-and-forth between the loan officer and the borrower costs 1-3 days. A complete file at application moves through underwriting in roughly half the time of an incomplete one.

FAQ

## The Six Questions Every First-Time Buyer Asks Before Calling

What is the lowest down payment for a first-time home buyer?

Conventional first-time buyer loans ([Fannie Mae HomeReady](https://pierpointmortgage.com/conventional-loans/) and [Freddie Mac Home Possible](https://pierpointmortgage.com/conventional-loans/)) start at 3 percent down. [FHA loans](https://pierpointmortgage.com/fha-loans/) require 3.5 percent down with a 580 credit score. [VA loans](https://pierpointmortgage.com/va-loans/) require $0 down for eligible service members and veterans. [USDA loans](https://pierpointmortgage.com/usda-loans/) require $0 down in eligible rural areas. PierPoint shops all four programs across 100+ wholesale lenders to find the lowest payment for your specific situation.

 What credit score do I need for a first-time home buyer loan?

[FHA loans](https://pierpointmortgage.com/fha-loans/) start at a 580 credit score with 3.5 percent down or 500 with 10 percent down. Conventional loans typically require 620+. VA loans have no minimum from the VA but most lenders require 580-620. Wholesale lenders in PierPoint’s network have looser overlays than retail banks, so borrowers declined by their bank often get approved. Shannon reviews your credit profile in the free consultation before any pull.

 Do first-time home buyers get a lower interest rate?

First-time buyers do not automatically get a lower base rate, but they qualify for programs banks do not advertise. Fannie Mae HomeReady and [Freddie Mac Home Possible](https://pierpointmortgage.com/conventional-loans/) offer reduced mortgage insurance and pricing adjustments. State down payment assistance programs (CalHFA, Georgia Dream, Florida Hometown Heroes, MSHDA) layer with FHA and conventional to lower the effective rate by 0.25 to 1.0 percent. PierPoint matches you to whichever combination saves the most money.

 How much income do I need to qualify as a first-time home buyer?

There is no minimum income — qualification is based on debt-to-income ratio (DTI). FHA allows up to 56.99% DTI with strong compensating factors. Conventional allows up to 50% DTI through automated underwriting. On a $350,000 home with 5 percent down and a 6.5 percent rate, the total monthly payment runs roughly $2,400 PITI in most markets. Borrowers typically need $5,800 to $7,200 monthly gross income to qualify, depending on other debts.

 Are first-time home buyer programs only for people who have never owned a home?

No. The IRS and most state programs define first-time home buyer as someone who has not owned a primary residence in the past three years. If you previously owned a home but sold it more than three years ago, you typically qualify for first-time buyer programs again. Divorced buyers who only owned jointly with a former spouse may also qualify. PierPoint confirms eligibility for every state and federal program your situation might fit.

 How long does it take to close on a first-time home buyer loan?

PierPoint averages 26 days from completed application to funded loan. The national average is 44 days. First-time buyer files sometimes take slightly longer (28-32 days) because gift letters, down payment assistance program approvals, and homebuyer education certificates add documentation steps. Shannon manages the timeline personally so deadlines do not slip.

YOUR NEXT STEP

## Your First Home Is Closer Than Your Bank Wants You to Know.

Five-minute phone call. No credit pull. No cost. Shannon tells you exactly which program fits your situation, what payment to expect, and which state DPA you qualify for.

[See My First-Home Rate](https://shannonswartz.zipforhome.com/LoanApplication/Contact?Language=E&IsStart=Y)[Call (844) 241-7720](tel:8442417720)

NMLS #112844 · Equal Housing Opportunity · No credit pull required to start

---

**Shopping a mortgage in one of our 15 states?**

PierPoint Mortgage is an independent brokerage, NMLS #112844, licensed since 2003. We compare wholesale rate sheets from 100+ lenders instead of selling one bank's products, and give you a written quote before you commit to anything.

- Free rate comparison: (231) 737-9911
- Apply: https://pierpointmortgage.com/apply/

- Full page: https://pierpointmortgage.com/first-time-homebuyer-loans/