Discover the essential requirements for first-time home buyer loans in 2024. Learn about low down payments, credit scores, and grants available nationwide.

As a first-time home buyer, understanding the requirements for home loans is crucial. These loans offer low down payments and flexible guidelines, making homeownership more accessible.

To qualify for first-time home buyer loans in 2024, you must meet specific criteria including income, credit score, and debt-to-income ratio. Additionally, grants are available to assist with down payments and closing costs, enhancing affordability.

Here’s an overview of popular first-time home buyer loan programs:

• FHA Loan: Minimum down payment of 3.5%, credit score requirement of 580, maximum DTI of 50%.
• Conventional 97 Loan: 3% down payment, credit score requirement of 620, maximum DTI of 43%.
• Fannie Mae HomeReady Loan: 3% down payment, credit score requirement of 620, maximum DTI of 45% (income limits apply).
• Freddie Mac Home Possible Loan: 3% down payment, credit score requirement of 660, maximum DTI of 45% (income limits apply).
• VA Home Loan: 0% down payment, credit score requirement varies, maximum DTI of 41% (must have eligible military service).
• USDA Home Loan: 0% down payment, credit score requirement of 640, maximum DTI of 41% (income limits apply, must buy in eligible rural area).
• FHA 203(k) Rehab Loan: 3.5% down payment, credit score requirement of 580, maximum DTI of 45%, minimum $5,000 rehab costs.

Each program has its own set of requirements, and lenders may have additional criteria. Generally, aim for a DTI under 45%, credit score of 580+, and at least a 3% down payment.

Explore our inventory for buyers

Explore your options and consider specialized programs like Conventional 97, FHA, VA, and USDA loans tailored to first-time buyers. These loans often feature lower down payments and more flexible credit requirements, making homeownership achievable.

Additional Programs and Considerations

In addition to federal programs, state and local governments offer first-time home buyer grants and assistance. These may include down payment assistance (DPA) loans, closing cost grants, and homebuyer education courses.

Specialized programs like Good Neighbor Next Door and HomePath Ready Buyer offer unique benefits for specific occupations or property types, further expanding options for first-time buyers.