First-Time Home Buyer Qualifications

Did you know that many first-time homebuyers in the U.S. start their journey without knowing if they actually qualify for a mortgage? If you’re dreaming of buying your first home, this uncertainty can feel overwhelming.

Understanding first-time home buyer qualifications is the first step to turning that dream into reality. By knowing what lenders expect, what programs are available, and how to prepare financially, you can confidently navigate the process. With the right guidance, you’ll not only find a home within your budget but also secure a loan that fits your long-term goals.

Take control of your homeownership journey today and make informed decisions that set you up for success.

The Total Mortgage experts have created this informative guide to first-time homebuyer qualifications to raise awareness among aspiring home buyers like you.

Who is a First-Time Home Buyer?

The first step is understanding exactly who counts as a first-time home buyer. For most lenders, a first-time home buyer is someone who:

• Has never owned a home before, or
• Has not been the owner of a home in the past three years
• Is buying the home as a primary residence, not for investment purposes

The third condition is mandatory, while either of the first two is enough to qualify.

Who Qualifies as a First-Time Homebuyer?

Now, you must also know about different profiles that qualify as first-time home buyers. 

Renters

If you’ve been living in rented properties consistently for the past three years and want to purchase your own home, you qualify as a first-time home buyer. You may also be interested in rent-to-own options. Programs are available to assist with down payments and closing costs.

Caregivers & Single Parents

If you’ve been living in rented accommodation, have recently separated or divorced, or have been caring for a family member, you can qualify for first-time buyer programs. These programs are designed to help you create a stable home for your family and kids.

Professionals (EMTs, Educators, Law Enforcement, Firefighters)

Even if you’ve rented for years, first-time home buyer programs exist specifically for professionals who may not have substantial savings for a down payment. These programs offer tailored assistance.

Military Active Members & Veterans

If you are currently serving or have been honorably discharged, and have rented for the last three years, you may qualify for VA mortgage loan programs designed for first-time home buyers.

Mobile Home Owners

If you’ve previously owned a manufactured or mobile home but never a traditional, permanently built home, you can now qualify for first-time home buyer mortgages with benefits like low down payments and closing cost assistance.

For Investment Purposes

Even if you previously owned a property that wasn’t your primary residence, you can pass as a first-time home buyer if you’ve rented for the past three years and now want to purchase a home to live in.

First-Time Homebuyer Qualification Criteria

When applying for a first-time homebuyer program or loan, there are a few key requirements you’ll need to meet:

• Credit Score: For conventional loans, a minimum of 620 is usually required. Some FHA, USDA, or VA loans allow lower scores, sometimes as low as 580.
• Debt-to-Income (DTI) Ratio: Most lenders prefer a DTI of 43% or lower, though this may vary depending on the program.
• Down Payment: Depending on the type of loan, down payments can range between 0% (for VA loans) to around 3% for certain first-time buyer programs.
• Credit History: Lenders generally expect a clean credit history—low balances, no late payments, and no accounts in collections.
• Income: Some programs have income limits based on area median income, especially for low- or moderate-income assistance programs.
• Employment History: Stable employment, usually for at least two years, is preferred.

Meeting these requirements doesn’t just help you qualify, but it also puts you in a better position to secure favorable loan terms and rates.

Benefits of Being a First-Time Home Buyer

Pocket-Friendly Monthly Payments

Loans for first-time buyers often have below-market interest rates. Private mortgage insurance (PMI), if required, is typically lower, reducing monthly payments.

Down Payment Assistance

Many programs offer down payment assistance, either directly or through third-party grants, to make purchasing more feasible.

Other Support Programs

Local municipalities and community organizations often provide homebuyer education courses, grants, and assistance programs to guide first-time buyers.

Tips for First-Time Home Buyers

Assess Your Financial Health

Evaluate your income stability, DTI ratio, credit score, and savings. This helps you create a realistic budget.

Research Loan Programs

Learn about conventional, FHA, VA, USDA, and other programs. Some require completion of homebuyer education courses.

Get Prequalified or Preapproved

Prequalification gives a quick estimate of how much you might borrow, while preapproval verifies your finances for a more accurate loan amount. Both help you shop with confidence.

Shop Multiple Lenders

Apply to at least 3 lenders to compare interest rates, deals, and qualifying criteria. Check online reviews to understand pre- and post-service experiences.

Get Expert Guidance from Total Mortgage

Buying your first home can feel overwhelming, but you don’t have to navigate it alone. At Total Mortgage, our team of specialists will guide you through every step, from understanding first-time buyer programs to comparing loan options & completing your application. Connect with us today and take the first step toward your dream home with confidence.

FAQs: First-Time Home Buyer Qualifications

Can I be a first-time home buyer if I’ve owned a property before?

If you currently own a home, you aren’t considered a first-time buyer. But if you haven’t owned one in the past three years, you can qualify.

My partner is not a first-time buyer—does that affect me?

No. You can still be in the first-time buyer category, even if your partner has previously owned a home, as long as you meet the criteria.

Is there a minimum income requirement?

There’s no universal minimum income. Lenders focus on your overall financial health, including income, debts, and obligations.

I don’t have savings—can I still buy a home?

It’s possible with down payment and closing cost assistance programs, though having some savings helps cover upfront costs.

What is the minimum credit score needed?

FHA loans permit aspirants with scores as low as 500 (with 10% down), while 580 usually requires 3.5% down. Conventional loans often require a 620 or higher.

How much money do I actually need to buy a home?

Expect a down payment of 3–5% of the purchase price, plus 2–5% more for closing costs, property taxes, insurance, and fees.

Is it difficult to get a home loan as a first-time buyer?

Not necessarily. Lenders often prefer first-time buyers, and assistance programs make it easier. Administrative work and price negotiation may be required.

Do qualifications differ by state?

Generally, qualifications are similar across states, especially for programs like Fannie Mae and Freddie Mac-backed loans.

When can I be considered a first-time home buyer again?

You must wait three years without owning a primary residence to qualify for first-time buyer programs again.