30-yr fixed6.75%+0.0315-yr fixed6.05%+0.00FHA 30-yr6.55%+0.08VA 30-yr6.38%+0.08Jumbo 30-yr6.82%+0.11Updated September 1, 2026
lowest.mortgageCompare today's mortgage ratesYour rate

Your situation

First-time buyer

Buying your first home means learning a whole vocabulary in a few weeks. Here is what actually matters, in the order it comes up.

See what a payment really includes

Who this is for

  • Anyone who has not owned a home in the last three years counts as first-time for most programs
  • Buyers with 3% to 5% saved plus closing costs
  • Renters comparing rent against a total monthly housing cost

How it works, step by step

  1. Check your credit and fix errors three months before you shop. Each 20-point band changes your price.
  2. Get pre-approved by two or three lenders in the same week. The credit checks count as one inquiry within 45 days.
  3. Ask about down payment assistance from your state housing agency; many programs are grants or forgivable loans.
  4. Compare Loan Estimates line by line, especially Section A (lender fees) and the APR.

Pros

  • Low down payment programs: 3% conventional, 3.5% FHA, 0% VA and USDA
  • State and local assistance grants
  • Lender competition for first-time buyers is intense

Cons

  • Under 20% down means mortgage insurance
  • Closing costs of 2% to 5% surprise many buyers
  • Emotion and time pressure push people to skip shopping