Buying a home can be a complex process, especially when you’re doing it for the first time. The right lender can help you through the process and — ideally — deliver savings on your interest rate, closing costs and more.
As a first-time homebuyer, choosing a lender that offers the loan types and services you need while providing excellent customer service is important. We’ve rounded up a list of the best mortgage lenders for first-time buyers to serve as a starting point in your search.
Methodology
To determine the best mortgage lenders for first-time homebuyers, we judged the nation’s most popular and up-and-coming banks, credit unions and other financial institutions across three categories: interest rates, loan details and repayment experience. Along the way, we heavily weighted key data points, such as available first-time homebuyer loan types and any proprietary programs or support options for first-timers. See our complete methodology below.
- Number of companies reviewed: 31
- Number of data points analyzed: 558
- Number of features we considered: 16
- Number of primary data sources used: 35
Show summary
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Guaranteed Rate
: Best mortgage lender for first-time buyers
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Bank of America
: Best national bank
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Homefinity
: Best for online experience
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Rocket Mortgage
: Best for customer support resources
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PNC Bank
: Best for repayment term options
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Chase Bank
: Best for multiple assistance programs
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U.S. Bank
: Best for current U.S. Bank customers
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New American Funding
: Best variety of loan types
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SoFi
: Best for customer perks
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Veterans United Home Loans
: Best for VA loans
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Ally Bank
: Best for no lender fees
Guaranteed Rate
Best mortgage lender for first-time buyers
Minimum down payment
3%
Minimum credit score
620
Availability
Nationwide
Why we picked it
Guaranteed Rate’s streamlined digital process is an excellent fit for first-time homebuyers who want to make the borrowing process as easy as possible. You can go through the entire process online but can also choose to visit one of the lender’s many in-person branches (500-plus across the U.S.).
Good to know: The lender’s “Operation Welcome Home” program allows you to get a conventional loan with a 3% down payment, assuming you have 660 credit scores and are amenable to a 15-year, fixed repayment term.
Guaranteed Rate also offers impressive rate-lock options of 60, 75, or 90 days. And if interest rates go down, you can renegotiate your contract. Depending on your situation, you may even be eligible for same-day mortgage approval. Finally, Guaranteed Rate has interest rates that are typically lower than the industry average.
All that being said, Guaranteed Rate doesn’t offer USDA loans. Also, Guaranteed Rate charges an application fee (amount undisclosed), which isn’t the case for many other lenders.
Pros
- Streamlined digital mortgage process
- First-time buyer program offers down payment assistance
- Lower-than-average mortgage rates
- Rate locks up to 90 days
- Branches in most states
- Same-day approval possible for qualified borrowers
Cons
- Doesn’t offer USDA loans
- Application fee required
- Unclear credit score requirements for FHA, VA loans
Who should consider it
Borrowers who want a streamlined digital mortgage process and affordable interest rates on non-USDA loans
Bank of America
Best national bank
Minimum down payment
3%
Minimum credit score
Undisclosed
Availability
Nationwide
Why we picked it
Bank of America serves customers in every state and has branches in most states, making it an ideal lender if you want to meet with a loan officer in person. And this in-person customer service may be part of why Bank of America has highly-rated customer satisfaction for both mortgage origination and serving, according to 2023 J.D. Power studies.
Another benefit of working with this lender is its grant programs for down payments and closing costs. If you have a modest income and need help with your upfront mortgage costs, consider Bank of America’s options:
- America’s Home Grant program: $7,500 in lender credits for non-recurring closing costs or to pay for rate discount points
- Down Payment Grant program: 3% of the purchase price (up to $10,000) to be used for the down payment
Unfortunately, Bank of America has slightly higher advertised interest rates than the national average. Additionally, Bank of America doesn’t disclose its credit score requirements for any of its loans, and it doesn’t offer USDA loans.
Pros
- Branches in most states
- Highly-rated customer satisfaction
- Down payment and closing cost assistance
Cons
- Above-average interest rates
- Not transparent about credit requirements
- Doesn’t offer USDA loans
Who should consider it
Borrowers who qualify for its down payment or closing cost assistance grants, or if you prefer to work with a national lender
Homefinity
Best for online experience
Minimum down payment
3%
Minimum credit score
Undisclosed
Availability
Not in ID, NV or NY
Why we picked it
Homefinity’s website makes it easy to get preapproved with a streamlined, easy-to-understand process. And though it’s an online lender with no physical branches, you’d still have a dedicated loan officer to guide you through the mortgage process.
Though Homefinity has some benefits, the lack of in-person branches could be a downside for some borrowers. Additionally, Homefinity doesn’t offer USDA loans or disclose its credit score requirements.
Pros
- Streamlined digital mortgage process
- Personalized rate quotes
- Lower-than-average mortgage rates
Cons
- Doesn’t offer USDA loans
- Not transparent about credit requirements
- No in-person branches
- Not available in all states
Who should consider it
Borrowers who want a streamlined digital mortgage process while still getting hands-on customer service
Rocket Mortgage
Best for customer support resources
Minimum down payment
3%
Minimum credit score
580 (VA, FHA loans), 620 (conventional)
Availability
Nationwide
Why we picked it
Rocket Mortgage consistently ranks above its competitors for customer satisfaction in both mortgage origination and servicing, according to J.D. Power. Additionally, though it doesn’t have physical branches, it offers phone and chat support.
Another benefit of working with Rocket Mortgage is its ONE+ program, which offers down payment assistance. If you qualify for 3% down on a conventional loan, this lender will pay 2% while you pay the other 1%. (To be eligible, you can’t earn more than 80% of your area’s median income and must have FICO credit scores of at least 620.)
The downside is that Rocket Mortgage has promoted interest rates higher than the national average. This lender also doesn’t have physical branches, which could be a deal-breaker for customers who want in-person service. Finally, USDA loans aren’t available.
Good to know: Quicken Loans is a registered trademark of Rocket Mortgage, and while it no longer originates loans, it serves as a loan marketplace (where you input your information and get matched with a partner). According to the Quicken Loans website, Rocket Mortgage is, unsurprisingly, its top lender.
Pros
- Top-rated customer satisfaction
- Down payment assistance
- Streamlined digital mortgage process
Cons
- Above-average interest rates
- No in-person branches
- Doesn’t offer USDA loans
Who should consider it
Borrowers who want top-notch customer service, especially if you qualify for Rocket Mortgage’s down payment assistance
PNC Bank
Best for repayment term options
Minimum down payment
3%
Minimum credit score
620 (conventional, FHA, VA loans)
Availability
Nationwide
Why we picked it
PNC Bank stands out by having more repayment term options than many other lenders. No matter what repayment term you want, there’s a good chance PNC Bank offers it: 10-, 15-, 20- and 30-year terms for fixed-rate mortgages and 7- and 10-year adjustable-rate mortgages (ARMs).
Additionally, PNC allows you to get a personalized rate quote on its website without impacting your credit. While it’s not the same as a preapproval, it’s still helpful early in your shopping process.
Another key feature of a PNC mortgage is the chance to qualify for $5,000 in closing cost assistance. If you meet the income requirements — having a household income at or below 80% of the median for your residential area — you can use the money to reduce or eliminate your closing costs, cover certain prepaid costs or reduce your down payment.
A downside of working with PNC Bank is the lender’s poor mortgage origination ratings in a 2023 J.D. Power survey. Additionally, while PNC has branches, they’re only available in just over half of states. Finally, unlike many lenders on our list, PNC allows you to start your application online, but you must get on the phone with a loan officer to complete it.
Pros
- Many repayment term options
- Personalized rate quotes
- Up to $5,000 in closing cost assistance (with income restrictions)
- Offers USDA loans
Cons
- Above-average interest rates
- Poor mortgage origination ratings
- No branches in many states
- Application and preapproval can’t be completed entirely online
- Higher credit score requirement for FHA, VA loans (620)
Who should consider it
Borrowers who want the best variety of loan repayment options, especially those borrowers who qualify for closing cost assistance
Chase Bank
Best for multiple assistance programs
Minimum down payment
3%
Minimum credit score
620 (conventional, VA loans)
Why we picked it
Chase is unique because it offers three programs that could specifically benefit first-time homebuyers (most competitors offer one or two):
- Chase DreaMaker mortgage: This program lowers the conventional loan down payment to 3%, assuming you meet income criteria.
- Chase Homebuyer Grant: Eligible borrowers in select areas may receive up to $7,500. The funds are first used for discount points to lower your rate and then applied to fees.
- Chase Closing Guarantee: If your mortgage doesn’t close within three weeks, you’ll get $5,000.
Chase’s website is also flush with educational tools for first-time buyers. With online preapproval, nationwide availability and high J.D. Power customer satisfaction ratings, Chase is worth considering as you shop for the right lender.
On the downside, it could more prominently display eligibility criteria for each loan type. Also, its rates were slightly higher than average, and it doesn’t employ its so-called home lending advisors in 12 states, as of February 2024.
Pros
- Multiple loan assistance programs, including down payment assistance and a grant
- Online preapproval
- On-time closing guarantee
- Rate locks up to 90 days
- Various loan options, including ARMs and jumbos
- Record of high customer satisfaction
Cons
- Higher-than-average interest rates
- Higher credit score requirement for VA loans than competitors (620)
- Doesn’t share key eligibility criteria
- Doesn’t offer USDA loans
- In-person service may not be available in a dozen states
U.S. Bank
Best for current U.S. Bank customers
Minimum down payment
3%
Minimum credit score
Undisclosed
Availability
Nationwide
Why we picked it
U.S. Bank is a national lender to prioritize, especially for existing customers: If you already have a checking account with U.S. Bank, you can save 0.25% of your closing costs, up to $1,000.
U.S. Bank also offers mortgage savings for first-time homebuyers via two proprietary programs. Both offer a fixed-rate, 30-year mortgage with a 3% down payment and bank-subsidized mortgage insurance.
As for downsides, U.S. Bank isn’t as forthcoming as it could be regarding loan requirements. Additionally, though it’s a national lender, it lacks branches in nearly half of states. Finally, though it does post interest rates on its website, U.S. Bank states that those rates are based on a borrower with a 25% down payment and an excellent credit score, which isn’t realistic for most lenders.
Pros
- Discount on closing costs for existing U.S. Bank customers
- Down payment and closing cost assistance
- Pre-qualification with no credit impact
Cons
- Lack of transparency around eligibility, rates
- No in-person branches in many states
Who should consider it
Existing U.S. Bank customers who qualify for the closing cost discount, especially if you qualify for down payment or closing cost assistance
New American Funding
Best variety of loan types
Minimum down payment
3%
Minimum credit score
Undisclosed
Availability
Not in NY
Why we picked it
In addition to conventional loans, New American Funding offers the three common types of government-backed loans — FHA, VA and USDA — as well as non-qualified mortgages, interest-only loans, jumbo loans, short-term loans (as short as eight years) and more.
Another benefit of working with New American Funding is that the lender has lower published rates than the national average. Additionally, some loans are eligible for a 14-business-day closing guarantee: If this lender can’t close your loan within 14 days, you’ll get a lender credit of $250.
However, New American Funding isn’t transparent about minimum eligibility criteria and doesn’t have the smoothest application process. First, you can’t complete the entire process online — a representative will contact you to finish your application. Additionally, starting the online loan process, or even seeing a personalized rate, requires opting into marketing emails from New American Funding and its partners.
Pros
- Many loan types available
- Below-average interest rates
- 14-day closing guarantee on many loans
Cons
- Doesn’t share eligibility criteria
- Application process can’t be completed entirely online
- Must consent to have your information shared with marketing partners to get a rate quote
- Not available in NY
Who should consider it
Borrowers who want a wide variety of loan types at competitive interest rates and a potentially speedy closing
SoFi
Best for customer perks
Minimum down payment
3% (for first-time buyers)
Minimum credit score
600 (FHA, VA loans)
Availability
Nationwide
Why we picked it
SoFi is an online bank, so it’s no surprise that it offers a seamless digital mortgage process. You can get a personalized rate quote without affecting your credit scores, and once you’re preapproved, you can lock in your rate for 90 days.
SoFi also offers several ways to help borrowers save. First, it offers a $5,000 on-time closing guarantee. If your loan doesn’t close on time and it’s SoFi’s fault, you’ll get a credit of up to $5,000 toward your closing costs. Additionally, SoFi’s posted interest rates are lower than the national average.
Unfortunately, SoFi doesn’t offer USDA loans. It also has a higher credit score requirement for FHA and VA loans than some competitors impose. Finally, as a digital lender, SoFi doesn’t have in-person branches.
Pros
- Offers personalized rate quotes
- Lower-than-average interest rates
- $5,000 on-time closing guarantee
- 90-day rate lock
Cons
- Doesn’t offer USDA loans
- Higher credit score requirement for FHA, VA loans (600)
- No in-person branches
- Jumbo loans not available in Hawaii
Who should consider it
Borrowers who want low interest rates and added customer perks, like a long rate lock and on-time closing guarantee
Veterans United Home Loans
Best for VA loans
Minimum down payment
0% (VA loans)
Minimum credit score
600
Availability
Nationwide
Why we picked it
If you’re a military service member, veteran or surviving spouse and you want a VA loan, look no further than Veterans United Home Loans. It’s the country’s top originator of VA loans, according to U.S. Department of Veterans Affairs data.
Veterans United offers 24/7 customer support, which allows it to serve customers who are stationed overseas. Additionally, Veterans United offers free credit counseling to help borrowers prepare to qualify for a loan.
Though Veterans United offers loans other than VA loans, you wouldn’t know it from its website. It doesn’t share much information about these loans, nor is it transparent about other loan interest rates. Veterans United has physical branches, but only in a handful of states, meaning most borrowers can’t access them.
Pros
- Specialization in VA loans
- 24/7 customer support
- Free credit counseling
Cons
- Only serves military families
- Not transparent about non-VA loans
- No in-person branches in most states
Who should consider it
Military families seeking a VA loan
Ally Bank
Best for no lender fees
Minimum down payment
3%
Minimum credit score
620
Availability
Nationwide
Why we picked it
Ally Bank is the only lender on our list to boast no lender fees. You won’t pay charges for application, origination, processing or underwriting, which can save you thousands on your loan closing costs. Ally also has a streamlined digital mortgage process that can be done entirely online — including loan preapproval in as little as three minutes. The lender claims it closes loans “10 days faster than (the) industry average.”
Good to know: The Ally Home Grant is a boon for first-time homebuyers based in Charlotte, Detroit and Philadelphia metro areas, offering $5,000 toward your down payment or closing costs.
A major downside of getting a mortgage through Ally is the lack of government-backed loans. If you want an FHA, VA or USDA loan, you’ll have to look elsewhere (although it does offer ARMs and jumbo loans). Additionally, Ally Bank doesn’t have any in-person branches.
Pros
- No lender fees
- Streamlined digital mortgage process
- Offers personalized rate quotes
- Preapproval in “3 minutes”
- Promises a faster closing than competitors’ average
Cons
- No government-backed loans
- No in-person branches
Who should consider it
Borrowers who want the lowest loan fees while enjoying a streamlined digital mortgage process
Our picks at a glance
| Lender | Rating | Minimum credit score | First-time homebuyer benefits |
|---|---|---|---|
Guaranteed Rate | 5 | 620 | Lower down payment requirement via “Operation Welcome Home” |
Bank of America | 5 | Undisclosed | $7,500 in lender credits (via “Home Grant”) or up to $10,000 in down payment assistance grant funds |
Homefinity | 5 | Undisclosed | |
Rocket Mortgage | 4.7 | 580 (VA, FHA loans), 620 (conventional) | “ONE+” down payment assistance program |
PNC Bank | 4.6 | 620 (conventional, FHA, VA loans) | $5,000 homebuying grant for closing costs |
Chase Bank | 4.5 | 620 (conventional, VA loans) | Lower down payment requirement via DreaMaker program; HomeBuyer Grant worth up to $7,5000 and a $5,000 on-time closing guarantee |
U.S. Bank | 4.4 | Undisclosed | Up to $5,000 in lender credits |
New American Funding | 4.4 | Undisclosed | $250 on-time closing guarantee |
SoFi | 4.4 | 600 (FHA, VA loans) | $5,000 on-time closing guarantee |
Veterans United Home Loans | 4.4 | 600 | |
Ally Bank | 4.3 | 620 | $5,000 “Ally Home Grant” for select cities |
Why get a first-time homebuyer loan?
In most cases, there’s no difference between the loan you’ll get as a first-time homebuyer and any other mortgage on the market. However, there are some additional perks you may be able to get as a first-time buyer:
- Digital mortgage process: These days, it’s easier than ever to find lenders that offer streamlined digital mortgage approvals, simplifying the shopping process so you can find a loan that fits your needs.
- Lender support: Whether you choose an online lender, national bank or local credit union, you can find lenders that offer hands-on support to help you through the process of buying a first (or second) home.
- Competitive interest rates: Mortgages generally have lower interest rates than other types of loans, and many of the best mortgage lenders offer rates lower than the national average, even for first-time buyers.
- Various loan types: Like mortgages for all borrowers, first-time buyers can access conventional, government-backed and non-qualifying (such as jumbo) mortgages, assuming you meet individual program requirements.
- Government backing: Depending on your situation, you may qualify for government-sponsored mortgages, including FHA, VA and USDA loans. These loans have more accessible eligibility requirements and competitive interest rates.
- Lender perks: Many of the lenders listed above offer special perks, some of which are exclusive to first-time buyers. Lender perks may include down payment or closing cost assistance, on-time closing guarantees, long rate lock periods and more.
What are the different types of first-time homebuyer loans?
As a first-time homebuyer, you’ll have many loan types to choose from, each of which offers some key benefits. When you’re shopping for a home loan, it’s important to choose a lender that offers the type of mortgage you need.
Conventional loan: Best for most borrowers
A conventional loan is the most popular type of mortgage. Most conventional loans are also conforming loans, meaning they’re eligible to be purchased (from the lender) by Fannie Mae and Freddie Mac. Depending on your financial situation, you may qualify for a down payment as low as 3%.
FHA loan: Best for borrowers with poor credit
An FHA loan is one that’s backed by the Federal Housing Administration. These loans are available to borrowers with poor credit scores and originated by private lenders. You may qualify with credit scores as low as 580 with a down payment of 3.5%, or credit scores as low as 500 with a down payment of 10%. Because of the low down payment, FHA loans require mortgage insurance premiums.
VA loan: Best for military families
VA loans are backed by the Department of Veterans Affairs and make it easier for military service members, veterans and surviving spouses to access homeownership. These loans don’t require a down payment or mortgage insurance and offer competitive interest rates.
USDA loan: Best for low-income borrowers in rural areas
USDA loans are backed by the U.S. Department of Agriculture and are available for borrowers buying properties in eligible rural areas. USDA loans don’t require down payments or mortgage insurance but are limited to borrowers with low and moderate incomes.
Jumbo loan: Best for high-income borrowers
A jumbo loan is one that’s too large to be purchased by Fannie Mae or Freddie Mac — in 2024, that’s a mortgage that’s over $766,550 in most areas, or over $1,149,825 in certain high-cost areas. These loans are still technically conventional loans since they aren’t backed by a government agency, but they aren’t conforming loans. Jumbo loans generally have stricter eligibility requirements, such as large down payments and good credit.
How to compare mortgage lenders
When you’re shopping for a mortgage, it’s important to compare multiple lenders to find the one best suited to your situation. Each lender has a unique lineup of loan programs, mortgage rates, repayment terms and perks.
One of the most important things to consider when shopping for a lender is your eligibility. Your credit scores are an important factor in qualifying for a mortgage. While mortgages have standard minimum credit score requirements, lenders can require even higher scores.
Next, look at each lender’s mortgage program options. While nearly every lender offers the most popular loan types, such as conventional loans and FHA loans, some don’t offer USDA loans or other less traditional loans.
Once you’ve narrowed your search to a list of lenders that fit your needs, you can get preapproved with each one to find out what interest rate you’ll pay. (Getting preapproved with multiple lenders on the same day, if possible, will help you accurately compare rates.) You can use these quoted rates, along with lender fees and other perks, to negotiate and choose the best lender for your situation.
First-time homebuyer grants and incentives
Several top-rated mortgage lenders offer first-time homebuyer grants that you can use toward a down payment and/or closing costs. Some programs are designed for first-time buyers, while others are available to any borrower. Here are a few examples:
- Bank of America offers its America’s Home Grant program, which offers a lender credit of $7,500 for closing costs, and the Down Payment Grant program, which offers up to $10,000 for a down payment.
- Rocket Mortgage offers a special loan program for borrowers with low to moderate incomes. If you qualify for this loan program, you can put as little as 1% down toward a home’s purchase price, while Rocket Mortgage covers the other 2%.
- PNC Bank offers a $5,000 grant to low-income borrowers that can be used to cover or reduce your closing costs, pay for part of your down payment or pay for any other prepaid costs associated with your loan.
- U.S. Bank offers several homebuying assistance options. The American Dream loan and U.S. Bank Access Home Loan provide funds for closing costs, down payments and other costs.
- Chase Bank’s homebuyer grant offers $7,500 to lower your interest rate, pay for lender fees and reduce your down payment.
Down payment options and assistance programs
The down payment required for a mortgage depends on your loan type. The table below breaks down the minimum down payment required for some of the most common loan types. Keep in mind that some lenders may require a higher down payment than the loan program stipulates.
| Loan type | Minimum down payment required |
|---|---|
Conventional loan | 3% |
FHA loan | 3.5% (with a credit score of 580) |
VA loan | 0% |
USDA loan | 0% |
Jumbo loan | 10% or more |
In addition to the down payment assistance programs offered by various lenders, there are also other ways to get help with your down payment and/or closing costs, especially as a first-time homebuyer. Many of these programs exist at the state and local level and provide either grants or loans — sometimes forgivable — to help you cover some or all of your loan down payment.
7 steps to securing your first mortgage
- Evaluate your finances. The first step in shopping for a mortgage is assessing your financial health. It’s important to check your credit scores ahead of time — your bank or credit card issuer may offer score tracking for free.
Also, assess your budget to understand how much you can afford to spend on a home. Using a mortgage payment calculator can help estimate your potential monthly dues. - Choose a loan option. There are various loan options, including conventional and government-backed loans. Consider your credit scores, savings and other factors to decide on the best loan type for you.
- Shop around for lenders. Once you’ve decided which type of loan is right for you, it’s time to compile a list of lenders. Narrow your list to those that offer the loan type you want at competitive interest rates — and offer any additional benefits that matter to you.
- Seek preapproval. Getting preapproved for a mortgage allows you to see whether you’ll qualify for a loan, how much you’ll qualify for and what interest rate you can get. It’s the most effective way to compare lenders.
- Apply for your loan. Once you’ve chosen the best lender for your situation and made an offer on a home, you should complete your full loan application.
- Get final loan approval. You’ll have to go through the underwriting process, where your lender will assess your finances and the characteristics of the home to determine your loan eligibility.
- Close on your loan. The final step of the loan process is closing. At your home closing, you’ll sign all your final loan documents, cover your closing costs and leave with a key to your new home.
Methodology
Our editors combined forces with our data research team to collect more than 550 data points to determine the best lenders for first-time homebuyers. Ultimately, we rated the 31 lenders under consideration across the following three categories:
Interest rates (35%)
The cost of a loan is critical, especially for mortgages that include decades-long repayment. Here, we rewarded lenders for prominently displaying interest rates, plus offering rate discounts and the ability to lock your rate.
Loan details (40%)
In this category, we considered the nuts and bolts of each lender’s loan programs, reviewing the following:
- Number and type of loan programs available
- Minimum down payment required for conventional loans
- Proprietary first-time buyer assistance programs
- Repayment term options offered
- Availability by state
Repayment experience (25%)
After you close your home loan, you want a mortgage lender or servicer that helps you along — and doesn’t get in your way — during repayment. Lenders that fared best here offer multiple customer support options, have helpful websites, physical branch locations and few major blemishes across independent organizations like the Better Business Bureau (BBB), Consumer Financial Protection Bureau (CFPB) and the Nationwide Mortgage Licensing System (NMLS).
What didn’t make the cut
Twenty of the mortgage lenders we reviewed didn’t rank highly enough to be included in our list of the best first-time homebuyer loans. The most common flaw among lenders that didn’t make the cut was a lack of transparency around interest rates and eligibility requirements. Other reasons that lenders fell short include:
- Down payment requirements above 3% for first-time homebuyers
- Hurdles to join the financial institution or become eligible
- Smaller menus of loan options that leave off popular options like FHA and VA loans
- Not lending nationwide
- Limited choice in repayment term lengths
- Restricted customer service hours
- Spotty track records according to the BBB, CFPB or NMLS
Frequently asked questions (FAQs)
In most cases, a first-time homebuyer is someone who hasn’t owned a home for at least three years. However, for the purposes of first-time homebuyer programs, individual lenders can set unique eligibility requirements.
Most loan programs allow you to buy a home with a low down payment, depending on your financial situation. You can buy with as little as 3.5% down for an FHA loan, 3% down for a conventional loan and 0% down for a VA loan or USDA loan.
Private mortgage insurance (PMI) is usually required on conventional loans when there’s a down payment smaller than 20%. It’s also required for FHA loans in the form of both an upfront and annual mortgage insurance premium (MIP).
Some programs are offered by lenders and are only available to borrowers getting a loan from that lender — the application takes place with the lender. Other first-time homebuyer programs are offered by government agencies, generally available to anyone within a certain geographic area. You must apply for each grant separately.
