Conventional and government-backed options
Conventional, FHA, VA and USDA loans use different credit, down-payment, mortgage-insurance, occupancy and property requirements.
Apply securelyFirst-time homebuyers
Compare conventional, FHA and assistance paths for a first home.
A first-time homebuyer may qualify for conventional, FHA, VA, USDA or eligible down-payment-assistance options. The useful comparison is not only the minimum down payment: review the complete monthly payment, cash to close, mortgage insurance, assistance terms and long-term cost.
Start with the scenario
A clearer starting point for the first purchase.
Straight Deal Mortgage can compare eligible programs across a broad wholesale network and help identify the documentation and execution path that fits the complete transaction.
How the program works
Qualification built around the right information.
Assistance review
Eligible grants, deferred loans and repayable assistance programs may help with upfront funds, but availability and terms vary by location and program.
Complete payment planning
Principal, interest, taxes, insurance, mortgage insurance, association dues and other obligations should be included in an affordable target.
A clearer path forward
What to expect.
- 01
Establish an affordable range
Review income, assets, credit, debts, reserves and expected housing costs before setting the purchase target.
- 02
Compare loan and assistance paths
Evaluate eligible first mortgages together with assistance repayment, income limits, property rules and cash-to-close requirements.
- 03
Complete documented preapproval
Provide the required borrower documents so the lender can identify issues and establish a more reliable financing range.
- 04
Update for the selected property
After an accepted offer, confirm taxes, insurance, appraisal, title, property eligibility and final assistance availability.
Common questions
Answers before you apply.
Can a first-time homebuyer use a conventional loan?
Yes. Eligible first-time buyers may use conventional financing, including certain low-down-payment options, subject to income, credit, assets, occupancy, property and underwriting requirements.
Is FHA or conventional better for a first-time buyer?
Neither is automatically better. Compare credit requirements, down payment, mortgage insurance, property standards, payment and total costs using the same purchase assumptions.
Who qualifies as a first-time homebuyer?
Definitions vary. Many programs treat someone who has not owned a principal residence during a specified recent period as a first-time buyer, while other exceptions or requirements may apply.
Do first-time buyers need 20% down?
No. Multiple eligible conventional and government-backed programs may allow lower down payments, subject to underwriting, mortgage insurance and program rules.
Is down-payment assistance free money?
Not always. Assistance may be a grant, deferred-payment loan, forgivable loan or repayable second lien. Terms, recapture provisions and availability should be reviewed before proceeding.
Can assistance cover closing costs?
Some programs may help with eligible down-payment and closing costs. Funding limits, first-mortgage requirements and borrower contributions vary.
Continue researching
Read the detailed mortgage guide.
Learn the terminology, common documentation, potential tradeoffs and questions to ask before choosing a program.
Compare FHA and conventional loans → · Prepare for mortgage preapproval → · Review down-payment assistance → · Use the before-touring checklist →
Program terms, documentation, pricing, lender participation, property eligibility and availability vary by transaction and jurisdiction and may change without notice. All loans are subject to application, credit approval, property review, underwriting requirements and applicable law. This is not a commitment to lend.