First-time home buyer loans, explained

What counts as a first-time buyer

Many programs define a first-time buyer as someone who hasn't owned a home in a recent period, not just someone who has never owned. Definitions differ, so it's worth asking even if you owned a home years ago.

Loan options to compare

• FHA loans: Government-insured, often more flexible on credit and down payment.
• Conventional loans: Some conventional programs are designed for first-time and moderate-income buyers.
• VA loans: For eligible veterans and service members.
• Down payment assistance: State, county and city programs may offer grants or second loans. State down payment assistance programs such as CalHFA (California) and CHFA (Colorado) may be available through some wholesale lenders, subject to program and lender guidelines. These programs carry income, price and first-time buyer or homebuyer education requirements, and funding can change.
• Non-QM options: For first-time buyers who are self-employed or have non-traditional income.

The steps, start to finish

1. Check your credit and review your budget.
2. Get pre-approved so you know your price range.
3. Find a real estate agent and start touring.
4. Make an offer. Your pre-approval letter goes with it.
5. Appraisal and underwriting. The lender values the home and reviews your documents.
6. Close. Sign, fund and get your keys.

Costs to plan for

Beyond the down payment, plan for closing costs, prepaid taxes and insurance, an inspection, and moving. Some costs may be negotiated with the seller or covered by assistance programs. Your Loan Estimate lists the loan and closing costs.

Common first-time buyer mistakes

• Shopping for homes before getting pre-approved
• Taking on new debt during the process
• Looking only at the monthly payment and not the total cost
• Not asking about assistance programs

We have separate guides for buyers in California and Colorado.

How Turn Times helps

Turn Times is a licensed mortgage broker, not a lender. Instead of offering one company's products, we compare first-time buyer options from wholesale lenders and walk you through the differences in plain language. Here's how it usually goes:

1. Tell us your goal. A short conversation about the property, your timeline and what matters most to you.
2. We search pricing across wholesale lenders. We look at which wholesale lenders' guidelines may fit your situation, and a licensed loan officer compares their pricing and terms.
3. You choose. We lay out the trade-offs so you can pick the option that works for you.
4. We manage the loan to closing. Appraisal, title, conditions and updates along the way.

Every loan is subject to the lender's underwriting, and approval isn't guaranteed. We arrange loans for properties in California and Colorado.

Frequently asked questions