You probably qualify for more than you have been told.
Most first-time buyers wait years longer than they need to, because of things they believe that are not true. Here is what is actually required, in plain English, from someone who does this every day.
Free, no credit pull to start, and no obligation. Or just call (448) 202-7711.
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A lot of those are from people who were told no somewhere else first.
Six things you were told that are not true
Every one of these keeps people renting who could be buying.
You need 20% down.
Actually: FHA is 3.5% down. Some conventional first-time buyer programs go to 3%. VA and USDA can be $0 down if you qualify. The 20% number only exists because putting 20% down lets you skip mortgage insurance, not because anyone requires it.
You need perfect credit.
Actually: FHA's published minimum is 580 with 3.5% down, and 500 to 579 with 10% down. Most buyers who get told no were told no by a bank that stacked its own higher minimum on top of the actual rule.
Getting pre-approved hurts your credit.
Actually: A mortgage inquiry is a small, temporary ding, and multiple mortgage inquiries inside a short shopping window count as a single inquiry. Shopping around is specifically protected. Not shopping around is what costs you.
You should find the house first.
Actually: Backwards. Pre-approval tells you your real price range and is what makes a seller take your offer seriously. In most markets an agent will not show you homes without one.
Down payment assistance is only for very low income.
Actually: Income limits are usually far higher than people assume, and many programs are county-based rather than income-based. Most buyers never check because they assume they will not qualify.
One denial means you cannot buy.
Actually: A bank is one company with one rule book. As a broker I shop hundreds of lenders, and guidelines vary a lot, especially on credit, self-employment, and debt-to-income. A no from one is often a yes from another.
Programs built for first-time buyers
You do not have to figure out which of these fits you. That is my job. But it helps to know they exist.
FHA
3.5% down
The workhorse program for first-time buyers. Credit scores from 580 (and 500 to 579 with 10% down), flexible on debt-to-income, and gift funds are allowed for the down payment.
See If I Qualify →Conventional 97
3% down
For first-time buyers with stronger credit. Only 3% down, and unlike FHA the mortgage insurance drops off once you build enough equity.
Learn More →VA
$0 down
For eligible veterans, active duty, Guard and Reserve, and some surviving spouses. No down payment, no monthly mortgage insurance, and reusable.
Learn More →USDA
$0 down
$0 down in eligible areas, and far more suburbs qualify than buyers expect. Check the map before you assume you are out of the zone.
Learn More →Florida Hometown Heroes
Up to $35,000 in help
Down payment and closing cost assistance for full-time Florida frontline workers. The qualifying job list is much broader than teachers and firefighters.
Learn More →Down payment assistance
Varies by county
State, county, and city programs that cover part or all of your down payment. Most buyers never hear about the one they qualify for. I check them for you.
See If I Qualify →What you actually pay, and when
Nobody explains this part, so here it is up front.
Down payment
Anywhere from $0 to 3.5% of the price on most first-time buyer programs. Gift funds from family are allowed on many of them.
Closing costs
Typically 2% to 5% of the loan amount, covering appraisal, title, taxes, and prepaid insurance. These can often be covered by the seller or a lender credit.
Earnest money
A good faith deposit you put down when your offer is accepted. It is not extra money, it gets credited back to you at closing.
Home inspection
A few hundred dollars, paid out of pocket, and worth every dollar. This is the one cost I never suggest skipping.
Want your real numbers instead of ranges? That takes about 15 minutes. Call (448) 202-7711.
How this goes
Four steps, and the first one costs you nothing but a phone call.
A 15 minute conversation
No application, no credit pull, no commitment. Tell me where you are and I will tell you honestly whether you are ready now or what to work on first.
Get pre-approved
We verify income, credit, and assets so you know your real price range. You get a pre-approval letter that makes agents and sellers take your offer seriously.
Shop with confidence
Now you look at homes you can actually get, and you make offers that compete. I stay reachable through the whole search.
Close and get your keys
I handle appraisal, underwriting, and the closing table, and I tell you what is happening before you have to ask.
Why this matters more on your first loan
A bank is one company, with one rate sheet and one rule book. If you do not fit their box, the answer is no, and you never find out that a different lender would have said yes.
I am an independent broker. I shop hundreds of lenders against each other for your file. Same paperwork on your end, far more places for your loan to land, and real competition on price. On a first purchase, where the file is usually the tightest, that difference is the whole ballgame.
Questions first-time buyers actually ask
What credit score do I actually need? +
FHA's published floor is 580 with 3.5% down, and 500 to 579 with 10% down. Conventional programs generally want higher. The catch is that many banks add their own minimum on top of the program rule, which is why buyers get told no on scores that are technically eligible. As a broker I shop the lenders that lend to where the guideline actually goes.
How much money do I need saved? +
Less than you think, and sometimes close to nothing. Between $0 down programs, gift funds, seller-paid closing costs, and down payment assistance, plenty of buyers get to the table with very little of their own cash. The only way to know your number is to run your specific scenario, which costs nothing.
Does pre-approval cost anything or lock me in? +
No and no. Pre-approval is free and it does not obligate you to use me or to buy anything. It is information. If the answer is that you should wait six months, I will tell you that and tell you exactly what to fix.
I am self-employed. Can I still qualify? +
Yes, and this is one of the most common places buyers get wrongly turned away. Banks read the bottom line of your tax return after write-offs, which makes a healthy business look like low income. There are programs that qualify you on 12 or 24 months of bank statements, or on 1099s, instead of the return.
How long does the whole process take? +
Pre-approval can happen in a day or two once I have your documents. From accepted offer to closing is commonly 30 to 45 days. The parts that slow deals down are usually documents and appraisal scheduling, and I stay ahead of both.
Why use a broker instead of my bank? +
Your bank is one company with one rate sheet and one set of rules. I shop hundreds of lenders against each other for your file. Same paperwork on your end, more places for your loan to land, and more competition on price.
Who do I call with questions? +
Me, directly. Rich Preston at (448) 202-7711 or rich@prestonlending.com. Ask me anything before you apply, there is no cost and no obligation.
Find out where you really stand.
Free, no obligation, and if the honest answer is "wait six months," I will tell you that and tell you exactly what to fix.
This page is for informational purposes only and is not an offer or commitment to lend. Program guidelines, down payment requirements, credit score minimums, and assistance program availability are set by the applicable agency, investor, or state housing agency and are subject to change. Down payment assistance programs have their own eligibility requirements and limited funding. All loans are subject to credit approval, income and asset verification, and property appraisal. Rich Preston, Branch Manager, NMLS 1735238. NEXA Lending, AZ Broker License 0944059, NMLS 1660690. Equal Housing Lender.