# First-Time Home Buyer Checklist and Resources By Opendoor Editorial Team | 2022-09-06 > For first-time home buyers, the process of finding and buying a home can seem overwhelming. Here’s a quick guide on a few important things you should know before diving into that purchase. ## Key Takeaways ## Key Takeaways - Some first-time home buyers may qualify for down payment assistance.  - It may be helpful to compare lenders for the best mortgage rate. - Usually, it’s best to determine a budget at the beginning and stick to it. # First-Time Home Buyer Checklist and Resources Buying your first home is one of the biggest financial decisions you'll ever make — and one of the most rewarding, with first-time buyers now [averaging age 40](https://www.nar.realtor/magazine/real-estate-news/nar-2025-profile-of-home-buyers-sellers-reveals-market-extremes) compared to late 20s in the 1980s. But between loan options, down payment assistance programs, and a process that can feel overwhelming, knowing where to start isn't always obvious. This guide breaks down who qualifies as a first-time buyer, walks through each step from financial prep to closing day, and covers the loans and assistance programs that can make homeownership more affordable. [Get your offer](#) ## What qualifies you as a first-time home buyer A first-time home buyer is someone who has not owned a principal residence in the past three years. So even if you owned a home a decade ago, you can still qualify for first-time buyer programs today — as long as you've been renting or living in a non-ownership situation for at least 36 months. Here's where it gets a bit nuanced: each program can set its own rules beyond the federal definition. Some waive the three-year requirement for veterans or buyers in certain census tracts. Others extend eligibility to people who only owned a mobile home on leased land. Before ruling yourself out, check the specific requirements for any program you're considering. ## Your complete first-time home buyer checklist Buying a home for the first time can feel like a lot. But when you break it into smaller steps, the process becomes much more manageable. The following checklist walks through each phase, from getting your finances in order to picking up your keys. ### 1. Assess your financial readiness Start by looking at your debt-to-income ratio, or DTI. This number compares your monthly debt payments (car loans, student loans, credit cards) to your gross monthly income. Lenders typically prefer a DTI below 43%. A stable income history also matters. Most lenders want to see at least two years in the same field, though job changes within your industry are usually fine. ### 2. Review your credit score and history Your credit score affects both your approval odds and the interest rate you'll receive. Higher scores generally mean lower rates, which can translate to thousands saved over the life of your loan. Pull your credit reports from all three bureaus — Equifax, Experian, and TransUnion — and look for errors. Disputing inaccuracies before you apply can give your score a boost. ### 3. Calculate your home buying budget Figuring out what you can afford goes beyond the purchase price. You'll also want to account for: - **Property taxes:** These vary widely by location and can add hundreds to your monthly payment - **Homeowners insurance:** Required by lenders and typically bundled into your mortgage payment - **Maintenance costs:** A common rule of thumb is 1% of your home's value per year - **HOA fees:** If applicable, these can range from $100 to $500+ monthly A general guideline suggests keeping [total housing costs below 28%](https://www.opendoor.com/articles/how-to-determine-how-much-home-you-can-afford) of your gross monthly income, though your comfort level and other financial goals matter too. ### 4. Save for your down payment and closing costs Closing costs are the fees paid to finalize your real estate transaction — things like appraisal fees, title insurance, and lender charges. These [typically run 2% to 5%](https://www.opendoor.com/articles/how-much-to-save-for-house) of the loan amount. [Down payment requirements](https://www.opendoor.com/articles/down-payment-amount) vary by loan type, which we'll cover below. The good news is that many first-time buyer programs offer assistance that can reduce your upfront cash significantly. ### 5. Research first-time homebuyer programs in your area Every state offers programs designed for first-time buyers, and many cities and counties have their own options too. Spending an hour on your state housing finance agency's website can reveal grants, low-interest loans, and tax credits you didn't know existed. ### 6. Get pre-approved for a mortgage loan [Pre-approval](https://www.opendoor.com/articles/mortgage-preapproval) is a lender's conditional commitment to lend you a specific amount based on your financial information. It's different from pre-qualification, which is just a rough estimate based on self-reported data. A pre-approval letter signals to sellers that you're a serious buyer with financing lined up. In competitive markets, this can make the difference between winning and losing your dream home. ### 7. Choose a real estate agent Working with an agent who has experience helping first-time buyers can save you time and stress. They'll guide you through negotiations, paperwork, and local market quirks. Opendoor partners with local agents to simplify the process, whether you're buying an Opendoor-owned home or searching the broader market. ### 8. Begin your home search Create two lists: your must-haves and your nice-to-haves. Being clear about priorities helps you move quickly when the right home appears. Tools like the Opendoor app let you browse homes, schedule self-tours, and explore neighborhoods on your own timeline — no waiting for an agent's availability. ### 9. Submit an offer and negotiate terms Your purchase offer includes more than just the price. It also covers contingencies (like inspection and financing) and your proposed closing timeline. A strong offer might include a larger earnest money deposit, flexibility on the closing date, or fewer contingencies. Your agent can help you craft an offer that stands out. ### 10. Complete your closing and get your keys Closing day involves signing final documents, transferring funds, and officially becoming a homeowner. The process typically takes one to two hours. Once everything is signed and recorded, you'll receive your keys. It's a big moment — and one worth celebrating. ## First-time home buyer programs by state Most states operate a housing finance agency that offers programs specifically for first-time buyers. The programs typically provide below-market interest rates, down payment assistance, or both. To find programs in your area, search for "\[your state\] housing finance agency" or visit HUD's list of state resources. Many programs have income limits and purchase price caps, so check eligibility requirements carefully. ## First-time home buyer loans explained Government-backed loans often have more flexible credit and down payment requirements than conventional loans. Understanding your options helps you choose the best fit for your situation. ### FHA loans for first-time buyers FHA loans are mortgages insured by the Federal Housing Administration. They're popular with first-time buyers because they allow credit scores as low as 580 with just 3.5% down. The trade-off is mortgage insurance premiums, or MIP. Depending on your down payment amount, you'll pay MIP for either 11 years or the life of the loan. ### VA loans for eligible buyers VA loans are guaranteed by the U.S. Department of Veterans Affairs and available to eligible veterans, active-duty service members, and surviving spouses. The standout benefit is that they often require no down payment at all. There's a funding fee, but it can be rolled into the loan. For eligible buyers, VA loans are often the most affordable option available. ### USDA loans for rural home purchases USDA loans are designed for homes in eligible rural and some suburban areas. Like VA loans, they can require no down payment, though income limits apply. Don't assume your area doesn't qualify. The USDA's definition of "rural" includes many suburban communities that might surprise you. ### Conventional loans with low down payments Conventional loans aren't backed by a government agency, but some programs — like Fannie Mae's HomeReady or Freddie Mac's Home Possible — allow down payments as low as 3% for buyers with good credit. You'll pay [private mortgage insurance, or PMI](https://www.opendoor.com/articles/what-is-pmi), until you reach 20% equity. Unlike FHA mortgage insurance, PMI on conventional loans can often be canceled once you hit that threshold. ## Down payment assistance for first-time home buyers Down payment assistance programs help reduce the upfront costs of buying a home. The key distinction is between grants (which don't require repayment) and loans (which do). ### Down payment grants Grants are essentially gift funds that you don't repay. State housing agencies, nonprofits, and local governments offer grants to eligible buyers, typically those earning below a certain income threshold. Competition for grants can be fierce, and funding often runs out quickly. Applying early when new funding cycles open gives you the best chance, especially with [2,509 assistance programs available](https://downpaymentresource.com/professional-resource/weve-added-43-programs-in-q1-2025-and-55-providers-since-q1-2024/) nationwide as of 2025. ### Down payment assistance loans Down payment assistance loans are secondary loans that cover your down payment or closing costs. Some are forgivable if you stay in the home for a set period, often five to ten years. Others are deferred-payment loans, meaning you repay them when you sell, refinance, or pay off your primary mortgage. Reading the terms carefully helps you understand your obligations. ### Employer-sponsored homebuyer programs Some employers offer housing assistance as a benefit, particularly in high-cost areas where recruiting is competitive. Check with your HR department — you might have access to benefits you didn't know existed. ### Nonprofit first-time buyer programs Organizations like Habitat for Humanity and local housing nonprofits help qualifying low-to-moderate-income buyers achieve homeownership. Many of these programs combine affordable financing with sweat equity requirements or homebuyer education. ## Additional resources for first-time buyers Beyond loans and down payment assistance, several other resources can support your homebuying journey. ### Tax benefits for first-time home buyers Homeowners who itemize their taxes can deduct mortgage interest and property taxes, which reduces taxable income. Some states also offer mortgage credit certificates that provide a direct tax credit. Tax benefits vary based on your situation, so consulting a tax professional before buying can help you understand the potential savings. ### Homebuyer education courses Many first-time buyer programs require completion of a HUD-approved homebuyer education course. Even if it's not required, the courses cover budgeting, the buying process, and home maintenance responsibilities. The investment of a few hours can prevent costly mistakes down the road. ## How to apply for first-time homebuyer programs The application process varies by program, but the following steps apply to most. ### 1. Gather your required documents Most applications require similar documentation: - **Proof of income:** Pay stubs, recent tax returns, and W-2s - **Asset statements:** Bank and investment account statements - **Identification:** Government-issued ID and Social Security number - **Credit authorization:** Permission for the lender to pull your credit report ### 2. Identify programs you qualify for Use your state housing finance agency's eligibility tool to find programs that match your income, purchase price, and location. Many buyers qualify for multiple programs that can be combined. ### 3. Submit your application Some applications go through an approved mortgage lender, while others go directly to a housing agency or nonprofit. Your lender can often guide you through the process. ### 4. Complete required homebuyer education If a course is required, you'll typically receive a certificate of completion that's needed before your loan can close. Online options are available through providers like Fannie Mae's HomeView. ### 5. Receive approval and move toward closing Once approved, assistance funds are typically applied at closing to reduce your out-of-pocket costs. Your lender will coordinate the timing so everything comes together smoothly. ## Start your homeownership journey today Buying your first home is an exciting and achievable goal with the right preparation. Whether you're just starting to save or ready to make an offer, the resources above can help you move forward with confidence. If you're also selling a current home — or helping a family member do so — Opendoor offers flexible options to fit your timeline. [Get a free, no-obligation cash offer](https://www.opendoor.com/address-entry) and see how simple selling can be. [Get your offer](#) ## FAQs about first-time home buyer programs ### What credit score do first-time home buyers need to qualify for a mortgage? Minimum credit scores vary by loan type. FHA loans often accept scores as low as 580, while conventional loans typically require 620 or higher. VA and USDA loans don't set minimum scores federally, but individual lenders usually have their own requirements. ### Can first-time buyers combine multiple assistance programs? In many cases, yes. Buyers often layer a state loan program with a local grant or employer assistance. However, each program has its own rules about stacking, so asking your lender or housing counselor which combinations work is a good first step. ### How long does the first-time home buying process take from start to finish? The timeline varies based on market conditions, loan type, and individual circumstances. Most buyers spend 30 to 90 days from pre-approval to closing. Getting your documents ready early can help speed things up. ### Is California giving money to first-time home buyers through the Dream for All program? California has offered shared-appreciation loan programs like Dream for All, but funding is limited and availability changes. Check the official CalHFA website for current status and application windows. ### What is the first-time home buyer grant program in New Jersey? New Jersey offers down payment assistance through the New Jersey Housing and Mortgage Finance Agency, with eligibility based on income and purchase price. Visit the NJHMFA website for details on current programs. ### How much do first-time home buyers typically put down in Georgia? The down payment amount depends on your loan type and any assistance programs used. Georgia's Dream Homeownership Program offers down payment assistance that can reduce upfront costs for eligible buyers. | **City** | **Explore Opendoor guides to neighborhoods in your area** | | Raleigh | [Historic Oakwood](https://www.opendoor.com/neighborhood-guide/historic-oakwood-raleigh), [Downtown](https://www.opendoor.com/neighborhood-guide/downtown-raleigh), [Boylan Heights](https://www.opendoor.com/neighborhood-guide/boylan-heights-raleigh), [Cameron Village](https://www.opendoor.com/neighborhood-guide/cameron-village-raleigh), [Five Points](https://www.opendoor.com/neighborhood-guide/five-points-raleigh), [North Hills](https://www.opendoor.com/neighborhood-guide/north-hills-raleigh), [Stonehenge](https://www.opendoor.com/neighborhood-guide/stonehenge-raleigh), [Wakefield](https://www.opendoor.com/neighborhood-guide/wakefield-raleigh), [Brier Creek](https://www.opendoor.com/neighborhood-guide/brier-creek-raleigh) | | Charlotte | [Uptown](https://www.opendoor.com/neighborhood-guide/uptown-charlotte), [Dilworth](https://www.opendoor.com/neighborhood-guide/dilworth-charlotte), [South End](https://www.opendoor.com/neighborhood-guide/south-end-charlotte), [Elizabeth](https://www.opendoor.com/neighborhood-guide/elizabeth-charlotte), [Belmont](https://www.opendoor.com/neighborhood-guide/belmont-charlotte), [Plaza Midwood](https://www.opendoor.com/neighborhood-guide/plaza-midwood-charlotte), [NoDa](https://www.opendoor.com/neighborhood-guide/noda-charlotte), [Camp North End](https://www.opendoor.com/neighborhood-guide/camp-north-end-charlotte), [Eastover](https://www.opendoor.com/neighborhood-guide/eastover-charlotte), [Myers Park](https://www.opendoor.com/neighborhood-guide/myers-park-charlotte), [Providence Plantation](https://www.opendoor.com/neighborhood-guide/providence-plantation-charlotte), [Ballantyne](https://www.opendoor.com/neighborhood-guide/ballantyne-charlotte) | | Plano | [Whiffletree](https://www.opendoor.com/neighborhood-guide/whiffletree-plano), [Legacy West](https://www.opendoor.com/neighborhood-guide/legacy-west-plano), [Kings Ridge](https://www.opendoor.com/neighborhood-guide/kings-ridge-plano), [Deerfield](https://www.opendoor.com/neighborhood-guide/deerfield-plano), [Shoal Creek](https://www.opendoor.com/neighborhood-guide/shoal-creek-plano), [Ridgeview Ranch](https://www.opendoor.com/neighborhood-guide/ridgeview-ranch-plano), [Willow Bend](https://www.opendoor.com/neighborhood-guide/willow-bend-plano), [West Plano](https://www.opendoor.com/neighborhood-guide/west-plano-plano), [Lakeside on Preston](https://www.opendoor.com/neighborhood-guide/lakeside-on-preston-plano), [Avignon Windhaven](https://www.opendoor.com/neighborhood-guide/avignon-windhaven-plano) | | Dallas | [Uptown](https://www.opendoor.com/neighborhood-guide/uptown-dallas), [Highland Park](https://www.opendoor.com/neighborhood-guide/highland-park-dallas), [Knox-Henderson](https://www.opendoor.com/neighborhood-guide/knox-henderson-dallas), [Lower Greenville](https://www.opendoor.com/neighborhood-guide/lower-greenville-dallas), [Bishop Arts District](https://www.opendoor.com/neighborhood-guide/bishop-arts-district-dallas), [Lakewood](https://www.opendoor.com/neighborhood-guide/lakewood-dallas), [Oak Lawn](https://www.opendoor.com/neighborhood-guide/oak-lawn-dallas), [Victory Park](https://www.opendoor.com/neighborhood-guide/victory-park-dallas), [Deep Ellum](https://www.opendoor.com/neighborhood-guide/deep-ellum-dallas), [Preston Hollow](https://www.opendoor.com/neighborhood-guide/preston-hollow-dallas) | | Fort Worth | [Downtown](https://www.opendoor.com/neighborhood-guide/downtown-fort-worth), [West 7th/Cultural District](https://www.opendoor.com/neighborhood-guide/west-7th-cultural-district-fort-worth), [Arlington Heights](https://www.opendoor.com/neighborhood-guide/arlington-heights-fort-worth), [Rivercrest](https://www.opendoor.com/neighborhood-guide/rivercrest-fort-worth), [TCU/University](https://www.opendoor.com/neighborhood-guide/tcu-university-fort-worth), [Fairmount](https://www.opendoor.com/neighborhood-guide/fairmount-fort-worth), [Ridglea Hills](https://www.opendoor.com/neighborhood-guide/ridglea-hills-fort-worth), [Benbrook](https://www.opendoor.com/neighborhood-guide/benbrook-fort-worth), [North Richland Hills](https://www.opendoor.com/neighborhood-guide/north-richland-hills-fort-worth), [Keller](https://www.opendoor.com/neighborhood-guide/keller-fort-worth) | | Phoenix | [Willo](https://www.opendoor.com/neighborhood-guide/willo-phoenix), [Encanto](https://www.opendoor.com/neighborhood-guide/encanto-phoenix), [Arcadia](https://www.opendoor.com/neighborhood-guide/arcadia-phoenix) | | Mesa | [Eastmark](https://www.opendoor.com/neighborhood-guide/eastmark-mesa) | | Scottsdale | [Old Town Scottsdale](https://www.opendoor.com/neighborhood-guide/old-town-scottsdale-scottsdale) | | Los Angeles | [Silver Lake](https://www.opendoor.com/neighborhood-guide/silver-lake-los-angeles), [Los Feliz](https://www.opendoor.com/neighborhood-guide/los-feliz-los-angeles), [Studio City](https://www.opendoor.com/neighborhood-guide/studio-city-los-angeles) | | Oakland | [Upper Dimond](https://www.opendoor.com/neighborhood-guide/upper-dimond-oakland), [Laurel](https://www.opendoor.com/neighborhood-guide/laurel-oakland) | | Seattle | [Capitol Hill](https://www.opendoor.com/neighborhood-guide/capitol-hill-seattle) | --- *Originally published at [https://www.opendoor.com/articles/briefs/first-time-home-buying-tips](https://www.opendoor.com/articles/briefs/first-time-home-buying-tips)*