Free Guide: Share with Any First-Time Buyer

Your First Home Starts Here: The Complete First-Time Buyer's Guide

Everything you've been told about buying your first home is probably wrong. You don't need 20% down. You don't need perfect credit. And you definitely don't need to wait. Here's the truth, from someone who's helped 2,000+ families do exactly this.

If you haven't owned a home you lived in during the last 3 years, you count as a first-time buyer. That opens up low down payment loans from 3.5% down (subject to credit approval and program terms), including FHA loans (3.5% down with a 600+ credit score through Sean; HUD's program floor is 580; subject to credit approval and program terms) and state programs that help with closing costs. The most common mistake? Shopping for homes before you're preapproved. Preapproval first sets your budget and makes your offer stronger. This page walks the whole sequence.

Ask Rosie: 90-second check Book a strategy callRosie doesn't pull your credit.

Written by Sean Shallis: 30+ years, $1B+ in closed transactions, Private Wealth Mortgage Strategist.

15 min read·Last updated: September 2026·NMLS #2362814

Watch: Home Buying Education Series

Real talk about mortgages, rates, and building wealth through homeownership.

What are the biggest first-time home buyer myths?

Three big ones. You don't need 20% down: down payments start at 3.5%. You don't need perfect credit: FHA takes 600+ at U.S. Bank. And rent isn't always cheaper: if you'll stay 5+ years, owning usually wins. Subject to credit approval and program terms.

You need 20% down to buy a home

Down payments start at 3.5% with FHA. VA loans require $0 down for eligible veterans. Many state programs offer down payment assistance. Subject to credit approval and program terms.

You need perfect credit (750+)

FHA loans take a 600+ credit score through Sean (HUD's program floor is 580). There are solutions for many credit profiles. Subject to credit approval and program terms.

You should wait until rates drop

Rates are unpredictable. Today's rate with tomorrow's equity beats waiting and potentially paying more for the same house. You can always refinance the rate: you can't refinance the price you paid.

Renting is always cheaper

Your landlord's mortgage payment IS your rent: plus their profit margin. Every payment you make builds their wealth, not yours.

The process takes forever

Pre-approval: 24-48 hours. House hunting: your timeline. Closing: 30-45 days. You could be in your home in 60 days from today.

Conventional vs FHA vs state down payment assistance
	Conventional	FHA	State DPA programs
Down payment	Varies by program; 20% skips PMI	3.5%	Help with down payment or closing costs
Credit	Lender sets the minimum	600+ with Sean; HUD floor 580	Set by each state program
Mortgage insurance	PMI below 20% down	MIP required	Follows the paired first mortgage
Income caps	None for most loans	None	Often, set by each state

Down payments from 3.5%. Subject to credit approval and program terms.

What first-time buyer programs do I qualify for?

Most first-time buyers fit FHA (3.5% down, 600+ with Sean), a conventional loan, or a state down payment assistance program. Veterans should look at VA first. Subject to credit approval and program terms.

FHA Loan

Down: 3.5%

Credit: 600+ with Sean

Conventional

Down: Varies by program

Credit: Lender minimum

No upfront mortgage insurance premium; 20% down skips PMI

VA Loan

Down: 0%

Credit: No minimum

For veterans and active military

USDA Loan

Down: 0%

Credit: 640+

Rural and suburban eligible areas

Down Payment Assistance

Down: Varies

Credit: Varies

State and local programs can cover your down payment

Physician Loan

Down: As little as 10%

Credit: Varies

No PMI up to $1M for MD, DO, DDS, DVM and similar

Step-by-Step: From "Thinking About It" to Keys in Hand

Get Pre-Approved (Day 1-2)

This is your buying power letter. It tells sellers you're serious and qualified. Takes 24-48 hours with the right lender. You'll know exactly what you can afford.

Find Your Home (Weeks 1-8)

Work with a realtor who knows your market. Visit homes, make a list, narrow it down. Your pre-approval gives you confidence to move fast when you find 'the one.'

Make an Offer (Day 1)

Your realtor structures the offer. Your pre-approval makes it strong. In competitive markets, this is where prepared buyers win.

Inspection & Appraisal (Weeks 1-2)

Protect yourself. A home inspection catches problems before they're yours. The appraisal confirms the home is worth what you're paying.

Clear to Close (Weeks 3-4)

Your loan is finalized. You'll review the Closing Disclosure, wire your down payment, and schedule your closing date.

Closing Day. You're a Homeowner (Day 30-45)

Sign the papers. Get the keys. Celebrate. Then Rosie starts watching your rate to make sure you never overpay.

5 Mistakes That Cost First-Time Buyers Thousands

Not getting pre-approved before house hunting

The cost: You fall in love with a home you can't afford, or lose it to a buyer who was prepared.

The fix: Get pre-approved first. It's free, it's fast, and it gives you real numbers.

Making big purchases before closing

The cost: That new car or furniture set changes your debt-to-income ratio. Your loan approval can be revoked.

The fix: Don't buy anything on credit between pre-approval and closing. Nothing.

Changing jobs during the process

The cost: Lenders verify employment at closing. A job change can delay or kill your loan.

The fix: Stay at your current job until after closing. Then celebrate with a new one if you want.

Skipping the home inspection

The cost: That $400 inspection could save you $40,000 in hidden repairs.

The fix: Always get an inspection. It's your only chance to know what you're really buying.

Not shopping your rate

The cost: A 0.25% difference on a $400K loan = $20,000+ over the life of the loan.

The fix: Get at least 2-3 quotes. Or better yet: let Rate Guardian monitor for the best timing.

After You Close, Rosie Watches Your Rate: Free

Rate Guardian is Sean's AI mortgage monitoring system. Once you close, Rosie watches the market 24/7 and alerts you when there's a real savings opportunity. No guesswork. No sales calls. Just math.

Ask Rosie: 90-second check Book a strategy callRosie doesn't pull your credit.

Get the Full First-Time Buyer's Guide

Enter your info and we'll send you the complete guide: programs, timeline, cost breakdown, and the mistakes that cost first-time buyers thousands.

First-time home buyer FAQ

Am I a first-time home buyer?

You count as a first-time buyer if you haven't owned a home you lived in during the last 3 years. So even if you owned before, you may qualify again. That opens up low down payment loans and state programs that help with closing costs. Subject to credit approval and program terms.

How much do I need to put down?

Down payments start at 3.5%. FHA loans take 3.5% down with a 600+ credit score through Sean. Subject to credit approval and program terms. You don't need 20% down to buy; 20% is what skips PMI on a conventional loan. State programs can help with closing costs on top of that.

What credit score do I need?

For FHA through Sean, 600+. HUD's program floor is 580, but lenders set their own minimums. Subject to credit approval and program terms. Not sure where you stand? Rosie doesn't pull your credit, so the 90-second check is a safe first look before you talk to a lender.

Should I get preapproved before I look at homes?

Yes. Shopping before preapproval is the most common first-time mistake. Preapproval sets your real budget, shows sellers you can close, and makes your offer stronger. It also surfaces credit or paperwork issues early, while there's still time to fix them. Start there, then go see houses.

Are there programs that help with closing costs?

Yes. Many states run down payment assistance programs that help with the down payment or closing costs. Rules, income caps and amounts are set by each state, and they pair with a first mortgage like FHA. Tell me your state and I'll tell you which ones are worth a look.

Keep reading

The questions first-time buyers ask after this page.