Down Payment Options for First-Time Home Buyers

Buying your first home can feel overwhelming—especially when it comes to the down payment. But the good news is that there are affordable down payment options for first-time

home buyers that can make homeownership more accessible than you think.

How Much Do First-Time Home Buyers Need for a Down Payment?

Many buyers still believe they need 20% down to buy a house, but that’s simply not true. In fact, most first-time home buyers put down much less. Let’s explore the most common low down payment options available in 2025.

1. FHA Loans – 3.5% Down

Backed by the Federal Housing Administration, FHA loans are one of the most popular choices for first-time buyers. They require just 3.5% down and have flexible credit score requirements. If you have limited savings or a less than perfect credit score, this could be a great fit.

2. Conventional Loans – 3% Down

You can now use a conventional loan to buy a home with just 3% down for qualified first-time buyers. These loans typically require a higher credit score than FHA loans but offer lower mortgage insurance costs in the long run.

3. VA Loans – 0% Down

If you’re a veteran or active-duty service member, a VA loan can get you into a home with no down payment and no private mortgage insurance (PMI). It’s one of the best home loan benefits available.

4. USDA Loans – 0% Down

Looking to buy in a rural or suburban area? A USDA loan might allow you to buy with no down payment at all. Income and location restrictions apply, but it’s worth exploring if you're open to less urban areas.

5. Down Payment Assistance Programs (DPA)

Many state and local housing agencies offer down payment assistance grants or second mortgages to help with upfront costs. These programs are designed specifically for first-time home buyers and can significantly reduce your out-of-pocket expenses.

Final Thoughts

Don’t let the down payment hold you back from buying your first home. With so many low-down payment mortgage options available, you might be closer to homeownership than you think.

How I Can Help You

When it comes time to purchase a home, I want to help you! Hopefully articles like this give you good information and a better understanding of the mortgage world but let me use my experience and expertise to help you with your particular situation.

I tell my clients and referral partners that a mortgage transaction starts with a simple conversation. Let’s talk about your financial situation, budget, and goals so that I can help you determine the best solution for you. During a 10-minute informal conversation, we can get you on the right path as it relates to a home purchase or mortgage refinance.