In short
A first-time home buyer loan isn't one program. It's the set of mortgage options that tend to fit people buying their first home, such as conventional, FHA, VA, and USDA loans, often with lower down payment paths for those who qualify. It's for buyers who want to understand their options and build a clear plan before they shop.
Reviewed by Kelham and Dave Brown, NMLS #1824866 Kelham | 314516 Dave · Last updated October 19, 2026
Where should a first-time home buyer start?
Start with a conversation, not a listing. Before you tour homes, it helps to know three things: what monthly payment feels comfortable, how much cash you'll need for a down payment and closing costs, and which loan programs fit your credit, income, and goals. We review those with you, explain the options in plain English, and help you get pre-approved so you can shop knowing where you stand. Many first-time buyers are surprised to learn they may not need 20% down, but what's available depends on your qualifications and the home you choose.
Key takeaways
Your first home purchase comes with a lot of new vocabulary and a lot of big numbers. That's exactly why we slow it down and teach it. At Brown Mortgage Group, we're a father-and-son team who believe homeownership is about more than a mortgage. It's about your family, your budget, and the life you're building. We'll explain how the process works, compare the loan options that fit your situation, and give you clear answers before you ever make an offer.
Your First Home, Explained Step by Step
Most first-time buyers don't come to us worried about the house. They come to us worried about the money. How much do we need to save? What will the payment be? Will our credit or income qualify? What if we pick the wrong loan? Those are fair questions, and they deserve clear answers instead of a pile of paperwork.
Our approach is simple: we teach first, then we plan. Dave has spent decades helping families buy homes and coaching mortgage professionals, and Kelham brings the habits of a college basketball official: prepare early, communicate clearly, and spot problems before they become surprises. Together, we want you to understand your options well enough to make an informed decision on your own terms.
Who Counts as a First-Time Buyer?
The definition is broader than many people think. For many programs, a first-time buyer is someone who hasn't owned a primary residence in the past three years, so you may still qualify even if you owned a home a while back. Definitions vary by program, though, so we'll confirm which ones apply to you before you plan around them.
The Loan Options First-Time Buyers Usually Compare
There's no single "first-time buyer loan." Instead, there are several programs that tend to work well for people buying their first home. Here's how they generally compare:
- Conventional loans can allow as little as about 3% down for qualified buyers. Mortgage insurance is typically required with less than 20% down, and it can usually be removed once you build enough equity.
- FHA loans are insured by the Federal Housing Administration and typically allow about 3.5% down, with credit guidelines that can be more flexible. They include mortgage insurance premiums.
- VA loans can allow zero down for eligible veterans, active-duty service members, and certain surviving spouses.
- USDA loans can allow zero down for eligible buyers purchasing in eligible areas, with income limits that apply.
Which one fits depends on your credit, income, savings, the property, and what you want your monthly payment to look like. We have access to a wide network of lenders, which lets us compare options for your scenario side by side instead of steering you toward one product.
Down Payment and Closing Costs
Your down payment is only part of the cash you'll need. Closing costs, prepaid items like homeowners insurance and property taxes, and reserves can all come into play. Some buyers also use gift funds from family, and some may qualify for down payment assistance programs. Those programs have their own rules, such as income limits, purchase-price limits, and homebuyer education, and availability changes over time. We'll walk you through what you might qualify for and what it would mean for your monthly payment.
Understanding Your Monthly Payment
A mortgage payment is more than principal and interest. It usually includes property taxes, homeowners insurance, mortgage insurance if your down payment is under 20%, and sometimes HOA dues. In Frisco, TX, taxes and insurance can make a real difference in the total, so we build your estimate around the full picture. As for interest, your rate depends on your scenario and the day's market. Reach out and we'll price it for real.
How We Guide You From First Call to Closing
- A real conversation. Face-to-face or virtual, we talk through your goals, timeline, and budget.
- A clear look at your numbers. We review your income, credit, savings, and debts so you understand what you can afford, not just what you might qualify for.
- A side-by-side comparison. We lay out the programs that fit, with the trade-offs explained.
- Pre-approval. You shop with a clear price range and a letter that shows sellers you've done your homework.
- Steady communication. From contract to closing, we keep you and your agent updated and flag anything that needs attention early.
Buying a home is a serious decision, and we won't pretend it's always simple. Underwriting asks for documentation, and things can come up along the way. Our job is to prepare you for those moments so there are as few surprises as possible.
Ready to Understand Your Options?
Whether you're ready to buy this year or just starting to save, a conversation now can help you build a plan that fits your goals. We'll give you clear answers, no pressure, and enough information to move forward with confidence when the time is right for you.
All loan scenarios and figures on this page are illustrative examples only, are not an offer or commitment to lend, and do not reflect current interest rates or guaranteed terms. Program availability, eligibility requirements, and limits vary and are subject to change. Contact our team for current details specific to your situation.
Quick facts
- Who it's for
- First-time buyers and those who haven't owned in 3 years (program-dependent)
- Typical minimum down payment
- About 3%–3.5% for qualified buyers; 0% with VA or USDA if eligible
- Credit minimums
- Vary by program and lender; we'll tell you where you stand
- Mortgage insurance
- Usually required with less than 20% down
- Occupancy
- Primary residence
- Rates
- Depend on your scenario and the day's market
Is this loan right for you?
Who it's for
- Buyers purchasing their first primary residence, or who haven't owned one in the past three years (program-dependent)
- People who want to know what they can comfortably afford before touring homes
- Buyers with limited savings exploring lower-down-payment programs they may qualify for
- Renters relocating to Frisco, TX who want local guidance on costs like taxes and insurance
- Anyone who wants the process explained clearly from first conversation through closing
Who it may not fit
- Investors buying a property they don't plan to live in
- Buyers who already own a home and plan to keep it as their primary residence
- People who want a quick quote without having their finances reviewed
- Buyers with a large down payment and strong credit who may simply want a standard conventional loan comparison
Pros and cons
Pros
- Several lower-down-payment paths for buyers who qualify
- Programs can often be compared side by side for your scenario
- Gift funds and assistance programs may be allowed, depending on the loan
- Pre-approval gives you a clear price range and a stronger position with sellers
- Guidance designed for people doing this for the first time
Trade-offs to weigh
- A smaller down payment usually means mortgage insurance and a larger monthly payment
- Assistance programs come with eligibility rules, limits, and sometimes education requirements
- Underwriting requires thorough documentation of income, assets, and credit
- Closing costs and reserves add to the cash you need beyond the down payment
Frequently asked questions
How much do I need to save to buy my first home?
It depends on the loan program, the price of the home, and your qualifications. Some programs allow about 3% to 3.5% down, and VA and USDA loans can allow zero down for eligible buyers. You'll also want to plan for closing costs and some cushion in savings. We'll build an estimate around your actual numbers so you know what to target.
What credit score do I need as a first-time buyer?
Minimums vary by program and lender, so there isn't one number that applies to everyone. Credit also affects your pricing and mortgage insurance, not just whether you qualify. We'll review your credit with you, tell you where you stand, and suggest practical steps if strengthening it would open up better options.
Can I still be a first-time buyer if I've owned a home before?
Possibly. For many programs, a first-time buyer is someone who hasn't owned a primary residence in the past three years. Definitions vary by program, so we'll confirm which ones apply to your situation.
Should I wait for rates or prices to change before buying?
That's a personal decision, and we won't pressure you either way. What we can do is show you real numbers for your situation today and walk through the trade-offs of buying now versus waiting. Your rate depends on your scenario and the day's market. Reach out and we'll price it for real.
Why should I get pre-approved before house hunting?
A pre-approval tells you what price range makes sense and shows sellers you've already had your finances reviewed. It also surfaces any issues early, while there's still time to address them. It's one of the first steps we help first-time buyers complete.
Can family help with my down payment?
Many loan programs allow gift funds from family members, but each program has rules about who can give, how the money is documented, and how much can be used. Tell us early if a gift is part of your plan so we can make sure it's handled correctly.
Related loan programs
Government-insured financing with a lower down payment path and flexible guidelines for buyers who qualify. Brown Mortgage Group helps you see if it fits.
Clear answers on eligibility, the funding fee and what a VA loan can do for you, from a father-and-son team that knows what it means to move a family.
We check the property address and your household income first, so you know whether a USDA loan is a real option before you fall in love with a home.
Last updated October 19, 2026 · Reviewed by Kelham and Dave Brown, NMLS #1824866 Kelham | 314516 Dave. This page is educational and not a commitment to lend; program details change — ask for current figures.