First-Time Home Buyer Guide
Buy Your First Home in 2026. On Your Terms. With a Wholesale Broker Who Answers the Phone.
Buying your first home is the single biggest financial decision most people ever make — and it's the one where most people get pointed at the wrong loan program by a bank loan officer working from a scripted menu. As a wholesale broker, we shop your file across 20+ lenders to find the program that actually fits your income, credit, and cash. Free pre-approval, no credit pull at the first call, direct broker access from application to keys.
0% downAvailable via VA loan
3-3.5% downCommon minimum
21-30 daysTypical close
9 statesLicensed footprint
The First-Time Buyer Journey: 6 Steps From Renting to Closing
Most first-time buyers try to skip steps and get stuck. Here's the actual sequence we walk every client through — with the tools you'll need at each phase.
1
Should You Buy At All?
Before anything else, run the honest math on rent-vs-buy for YOUR specific rent, target home price, and timeline. Some situations still favor renting. Most don't.
Rent vs Buy Calculator →2
How Much Can You Afford?
Your maximum purchase price is capped by TWO constraints: your debt-to-income ratio and your cash to close. Run both simultaneously to see which one binds.
Affordability Calculator →3
Which Loan Program?
Same buyer, same income, same savings. Different loan program = different maximum home price + different monthly cost. Here's how each program fits different files.
Compare Programs →4
Down Payment Sources
Personal savings. 401(k) hardship or loan. Gift funds from family. Down payment assistance programs. Each has tradeoffs. Some are dramatically better than others.
Down Payment Guide →5
Get Pre-Approved
Not pre-qualified. Pre-approved. Listing agents in competitive markets don't take pre-quals seriously. OnPoint issues real pre-approval letters within 24-48 hours after your file is ready.
Start Pre-Approval →6
Shop, Offer, Close
Realtor coordination, offer support, appraisal, underwriting, closing. Typical timeline: 30-45 days from accepted offer to keys in hand. We coordinate the whole process.
Talk to a Broker →Loan Programs Built for First-Time Buyers
Five loan programs cover 95% of first-time buyer files. Here's the honest side-by-side comparison. The best program for you depends on your specific FICO, income, target home price, and (if applicable) VA eligibility.
| Program | Down Payment | Min FICO | PMI/MIP | Best For |
|---|---|---|---|---|
| Conventional 3% Down (HomeReady / Home Possible) | 3% | 620 | PMI, drops at 78% LTV | First-time buyers at or below 80% AMI (Area Median Income) |
| Conventional 5% Down | 5% | 620 | PMI, drops at 78% LTV | First-time buyers above HomeReady income limits |
| FHA 3.5% Down | 3.5% | 580 | MIP for life of loan (30-yr terms) | Lower FICO, higher DTI, first-time buyers who plan to refinance to conventional at 80% LTV |
| VA 0% DownBest if eligible | 0% | None (620+ common) | No PMI ever | Veterans, active duty, National Guard, some surviving spouses |
| USDA 0% Down | 0% | 640 | Annual fee (lower than PMI) | Rural / semi-rural properties, moderate income |
See our full product pages: Conventional · FHA · VA · HomeReady/Home Possible Guide
HomeReady Income Eligibility: 2026 AMI Snapshot for OnPoint's 9 States
The HomeReady 3% down conventional program requires your household income to be at or below 80% of the Area Median Income (AMI) for the county where you're buying. Here's what that looks like in the major markets we serve, based on the official 2026 Fannie Mae AMI table.
What is AMI, and why does it matter?
AMI (Area Median Income) is the midpoint of household incomes in a specific geographic area, published annually by HUD and used by Fannie Mae to determine HomeReady, RefiNow, and Duty to Serve eligibility.
HomeReady's 80% AMI cap means your qualifying household income must be at or below 80% of your county's AMI to use the 3% down program. If your income is above 80% AMI, you're not eligible for HomeReady, but standard Conventional 5% down and other programs remain available.
Property location matters, not borrower location. The AMI limit is based on where the home is, not where you currently live. A California resident buying in Idaho uses Idaho's AMI limits.
Full 2026 AMI Table
Every U.S. county at census tract level. Official Fannie Mae source.
Download XLSXCalifornia (58 counties)
| County (Major City) | 100% AMI | 80% AMI |
|---|---|---|
| Los Angeles County (LA, Long Beach) | $115,100 | $92,080 |
| Orange County (Irvine, Anaheim) | $115,100 | $92,080 |
| San Diego County | $130,900 | $104,720 |
| Santa Clara County (San Jose) | $200,900 | $160,720 |
| San Francisco County | $174,700 | $139,760 |
| Alameda County (Oakland) | $174,700 | $139,760 |
| Sacramento County | $124,400 | $99,520 |
| Riverside County | $106,500 | $85,200 |
| Fresno County | $89,300 | $71,440 |
| Kern County (Bakersfield) | $81,900 | $65,520 |
Colorado (64 counties)
| County (Major City) | 100% AMI | 80% AMI |
|---|---|---|
| Denver County | $144,000 | $115,200 |
| Boulder County | $150,000 | $120,000 |
| Arapahoe County (Aurora) | $144,000 | $115,200 |
| Adams County (Westminster) | $144,000 | $115,200 |
| Jefferson County (Lakewood) | $144,000 | $115,200 |
| Larimer County (Fort Collins) | $130,400 | $104,320 |
| Weld County (Greeley) | $128,000 | $102,400 |
| El Paso County (Colorado Springs) | $115,700 | $92,560 |
Florida (67 counties)
| County (Major City) | 100% AMI | 80% AMI |
|---|---|---|
| Miami-Dade County (Miami, Hialeah) | $97,600 | $78,080 |
| Broward County (Fort Lauderdale) | $97,600 | $78,080 |
| Orange County (Orlando) | $97,600 | $78,080 |
| Duval County (Jacksonville) | $108,400 | $86,720 |
| Hillsborough County (Tampa) | $104,700 | $83,760 |
| Pinellas County (St. Petersburg) | $104,700 | $83,760 |
| Leon County (Tallahassee) | $99,300 | $79,440 |
Idaho (44 counties)
| County (Major City) | 100% AMI | 80% AMI |
|---|---|---|
| Ada County (Boise) | $109,900 | $87,920 |
| Canyon County (Nampa) | $109,900 | $87,920 |
| Bannock County (Pocatello) | $100,900 | $80,720 |
| Twin Falls County | $94,000 | $75,200 |
Maryland (24 counties)
| County (Major City) | 100% AMI | 80% AMI |
|---|---|---|
| Montgomery County (Bethesda, Rockville) | $164,100 | $131,280 |
| Prince George's County | $164,100 | $131,280 |
| Frederick County | $164,100 | $131,280 |
| Howard County (Columbia) | $134,000 | $107,200 |
| Anne Arundel County (Annapolis) | $134,000 | $107,200 |
| Baltimore County | $134,000 | $107,200 |
| Baltimore City | $134,000 | $107,200 |
New Hampshire (10 counties)
| County (Major City) | 100% AMI | 80% AMI |
|---|---|---|
| Rockingham County | $155,000 | $124,000 |
| Hillsborough County (Nashua) | $137,600 | $110,080 |
| Merrimack County | $128,600 | $102,880 |
South Carolina (46 counties)
| County (Major City) | 100% AMI | 80% AMI |
|---|---|---|
| Charleston County | $117,500 | $94,000 |
| York County (Rock Hill) | $111,400 | $89,120 |
| Greenville County | $101,000 | $80,800 |
| Richland County (Columbia) | $92,800 | $74,240 |
| Horry County (Myrtle Beach) | $86,000 | $68,800 |
| Florence County | $74,000 | $59,200 |
Texas (254 counties)
| County (Major City) | 100% AMI | 80% AMI |
|---|---|---|
| Travis County (Austin) | $134,400 | $107,520 |
| Dallas County | $117,500 | $94,000 |
| Tarrant County (Fort Worth, Arlington) | $117,500 | $94,000 |
| Collin County (Plano) | $117,500 | $94,000 |
| Harris County (Houston) | $105,100 | $84,080 |
| Bexar County (San Antonio) | $101,600 | $81,280 |
| Potter County (Amarillo) | $90,800 | $72,640 |
| Lubbock County | $89,500 | $71,600 |
| Nueces County (Corpus Christi) | $84,800 | $67,840 |
| Webb County (Laredo) | $74,000 | $59,200 |
| El Paso County | $73,400 | $58,720 |
Virginia (133 counties + cities)
| County / City (Major Area) | 100% AMI | 80% AMI |
|---|---|---|
| Fairfax County (NoVA) | $164,100 | $131,280 |
| Arlington County | $164,100 | $131,280 |
| Loudoun County | $164,100 | $131,280 |
| Albemarle County (Charlottesville) | $139,800 | $111,840 |
| Richmond city | $113,100 | $90,480 |
| Virginia Beach city | $107,700 | $86,160 |
| Norfolk city | $107,700 | $86,160 |
| Chesapeake city | $107,700 | $86,160 |
| Rockingham County (Harrisonburg) | $97,700 | $78,160 |
| Lynchburg city | $88,300 | $70,640 |
Important: Even if your income exceeds 80% AMI for your county, HomeReady may still be available if the property is located in a Fannie Mae low-income census tract (income limit is waived in these tracts). Call OnPoint at (877) 870-0007 to verify HomeReady eligibility for your specific property. AMI limits above show COUNTY 80% AMI — some tracts within these counties have different limits. The downloadable spreadsheet has tract-level data.
How Much Cash Do You Actually Need to Close?
Down payment + closing costs (2-3% of purchase price) + reserves (0-2 months of PITI typical) = your cash-to-close total. Here's what that looks like on a ,000 home purchase across common programs.
VA 0% Down
Closing costs + funding fee (can be rolled in). Reserves optional.
FHA 3.5% Down
.5K down + closing + upfront MIP (can be rolled in).
Conv 5% Down
down + closing + PMI setup. Sweet spot for most files.
Conv 20% Down
down + closing. No PMI. Best long-run cost if you have the cash.
Amounts illustrative for a purchase. Actual cash-to-close varies by state (closing costs range 2-3.5%), lender, and program specifics. Gift funds from family are permitted on conventional, FHA, and VA. Down payment assistance programs can reduce these amounts significantly for eligible buyers.
5 First-Time Buyer Myths (and What's Actually True)
Every first-time buyer walks into our office believing at least three of these. All five are wrong.
Myth
You need 20% down to buy a house.
Almost half of first-time buyers put down less than 10%. Conventional starts at 3%, FHA at 3.5%, VA at 0%. The 20% number is where PMI drops off, not where buying becomes possible.
TruthMost first-time buyers put down 3-10%. The right down payment is the one that fits your cash + your comfort with monthly payment + PMI cost.
Myth
You need 720+ credit to qualify.
FHA accepts 580 FICO. Conventional accepts 620. VA has no hard minimum (most lenders want 620). Best pricing kicks in around 740, but qualification starts far lower.
TruthYou can qualify for a mortgage with FICO as low as 580. Higher scores get better rates, but the qualification threshold is much lower than most people think.
Myth
Pre-qualification is the same as pre-approval.
Pre-qual is a rough estimate based on numbers you tell the lender verbally. Pre-approval is a formal underwriting decision based on documented income, credit pull, and asset review.
TruthIn competitive markets, listing agents ignore pre-quals. Get a real pre-approval letter before making offers.
Myth
Renting is always cheaper than buying.
Monthly cost is often true, especially in years 1-3 with a low down payment. But rent is 100% expense. Buying builds equity via principal pay-down + appreciation + tax deductions.
TruthOver 5-10 year hold periods, buying almost always builds more wealth than renting the same house. Run the numbers on YOUR rent + target home in the calculator.
Myth
A bank gives you the best mortgage rate.
Banks sell you their own retail loan. Wholesale brokers shop across 20+ lenders including specialty investors. The rate spread on the same file across our lender panel is often 0.25-0.75%.
TruthWholesale broker pricing beats retail bank pricing on most first-time buyer files. That's roughly -/month on a typical loan — - over 30 years.
Myth
You have to use the Realtor's preferred lender.
No, you don't. Realtors get compensated for the sale, not for steering you to a specific lender. The "preferred lender" is often the one paying the highest referral fee — not the one with the best rate for you.
TruthChoose your lender based on rate + service, not on Realtor preference. A wholesale broker frequently beats the Realtor's preferred lender on both fronts.
Free Tools to Run Your Own Numbers
Every honest first-time buyer conversation starts with three questions: should I buy, how much can I afford, and what will my payment be? Here are the calculators to answer each.
Rent vs Buy Calculator
Should you keep renting or buy? The honest math with 10-year wealth comparison for your specific scenario across 9 states.
Affordability Calculator
Max home price you qualify for, based on income + monthly debts + cash available + your state. DTI and cash-to-close modeled simultaneously.
Basic Mortgage Calculator
Monthly P&I on your target loan amount + rate + term. Compare 15-year vs 30-year. Estimate PMI, taxes, and insurance.
Deep-Dive Guides for First-Time Buyers
The specific topics first-time buyers ask us about most often, written up as full articles.
Decision Framework
Rent vs Buy: The Honest Math for 2026 — A ,000 Renter vs an ,000 Home Purchase
AffordabilityHow Much House Can I Afford? The 2026 Wholesale Broker Guide (With a Worked Income Scenario)
PlanningEssential 2026 Mortgage Planning: What Every First-Time Buyer Needs to Know
VA LoanVA Loan Complete Guide: 0% Down, No PMI, and the Fine Print
FHA LoanFHA Loan Complete Guide: 3.5% Down, Flexible Credit, and When It Beats Conventional
3% DownHomeReady & Home Possible: The 3% Down Conventional Programs Most Buyers Don't Know About
Down PaymentUsing Retirement Funds for Down Payment: When It Works, When It Doesn't
TimingShould I Wait for Rates to Drop or Buy Now? The Honest Analysis
First-Time Buyer Programs by State
Every state has its own down payment assistance programs, closing cost assistance, and first-time buyer tax credits. OnPoint is licensed in 9 states — pick yours for state-specific details.
Victor Santos, NMLS #888844 — Your Wholesale Broker
Senior Loan Officer at OnPoint Mortgage Pro. Headquartered in Irvine, California. Licensed in 9 states. When you call, you talk to me — not a call center.
- 20+ wholesale lenders shopped for your loan
- Real pre-approval letter within 24-48 hours
- Free consultation, no credit pull at first call
- Direct broker access from application through closing
What Real First-Time Buyer Clients Say About OnPoint
Verified reviews from OnPoint Mortgage Pro clients across purchases, refinances, and first-time buyer loans. No edits. No curation.
First-Time Home Buyer FAQ
The questions we hear most from first-time buyers. If yours isn't here, call (877) 870-0007 — we'll answer it on the free consultation.
How much do I need saved to buy my first home?
Depends on the loan program. VA (if eligible): as little as ,000-,000 covers closing costs on a moderate purchase. FHA: 3.5% down plus 2-3% closing = roughly 6-7% of purchase price. Conventional 5% down: about 8% total. Conventional 20% down (no PMI): 22-23% total. The right down payment depends on your cash + long-term payment comfort.
What credit score do I need to qualify?
Minimums: FHA 580, Conventional 620, VA no hard minimum but most lenders want 620+, USDA 640. Best pricing kicks in at FICO 740+. Below 680, FHA often costs less overall than Conventional due to Conventional pricing tier structures.
What's the difference between pre-qualified and pre-approved?
Pre-qualified: rough estimate based on numbers you tell the lender verbally. Pre-approved: formal underwriting decision with documented income, credit pull, and asset review. Real Realtors in competitive markets don't take pre-quals seriously. Get a real pre-approval before making offers.
Can I use gift funds from family for my down payment?
Yes on Conventional (all down payment can be gifted from family), FHA (all can be gifted), and VA (all can be gifted). Gift funds must be documented with a gift letter and paper trail. Jumbo loans typically require some borrower-sourced funds.
Can I use my 401(k) for the down payment?
Two ways: 401(k) loan (borrow against your balance and repay via payroll) or 401(k) hardship withdrawal (typically 10% penalty if under 59.5 plus income tax). The 401(k) loan is almost always better than the hardship withdrawal. Neither is usually better than saving from cash flow, but both are options if you need to buy soon. See our Retirement Funds for Down Payment guide.
How long does it take to buy a house from start to finish?
Roughly 90-120 days for most first-time buyers. Timeline: 1-2 weeks to get pre-approved, 30-60 days shopping for homes, 30-45 days from accepted offer to closing. Faster is possible with a pre-approved buyer + turnkey home + Realtor coordination.
Should I buy now or wait for rates to drop?
Depends on your timeline, cash position, and target market. Waiting for rates to drop is often more expensive than buying today because home prices typically rise while you wait, and the payment savings from lower rates get eaten by higher purchase prices. See our full analysis: Should I Wait for Rates or Buy Now?
What are closing costs and how much are they?
Closing costs typically run 2-3% of purchase price and cover: lender fees (origination, underwriting, appraisal, credit report), title fees, escrow fees, transfer taxes, prepaid property tax, prepaid homeowners insurance, and prepaid interest. In some states (California, high-tax states), closing costs run closer to 3%. In lower-cost states, closer to 2%.
Do I have to use my Realtor's preferred lender?
No. Your Realtor gets paid on the sale, not on the lender you choose. The "preferred lender" is often the one who's built a referral relationship, not necessarily the one with the best rate for your file. Wholesale brokers frequently beat Realtor-preferred retail lenders on both rate and service.
What's PMI and how do I avoid it?
PMI (Private Mortgage Insurance) is required on Conventional loans with less than 20% down. It protects the lender if you default. On Conventional loans, PMI automatically drops off when your loan balance reaches 78% of the ORIGINAL purchase price. On FHA loans (called MIP), it typically stays for the life of the loan on 30-year terms — which is why many FHA borrowers refinance to Conventional after building equity.
What does a wholesale broker cost me?
Nothing extra out of pocket compared to a retail lender. Wholesale broker compensation is built into the loan pricing (lender-paid compensation). Because wholesale lenders don't have retail branch overhead, the total cost to you is typically LOWER than going direct to a bank — even after broker compensation. That's why shopping across 20+ wholesale lenders finds better pricing than most bank retail channels.
Can I qualify if I'm self-employed?
Yes. Standard programs (Conventional, FHA, VA) qualify self-employed borrowers on 2 years of tax returns. Non-QM programs (bank statement, DSCR, asset depletion) qualify on business bank deposits or asset base — often 40-70% more borrowing power than tax returns would allow if you write off aggressively.
What if my partner has bad credit — can I still buy?
Yes. You can apply as a single borrower using only your income + credit. You lose your partner's income for DTI purposes but gain access to your file's better pricing. Community property states have specific considerations — talk to a wholesale broker about the right structure.
Does OnPoint work with first-time buyers outside California?
Yes. OnPoint Mortgage Pro is licensed in 9 states: California, Colorado, Florida, Idaho, Maryland, New Hampshire, South Carolina, Texas, and Virginia. First-time buyer programs available in all 9 states.
Ready to Start Your First Home Buying Journey?
Free consultation. Real pre-approval letter in 24-48 hours. Rates shopped across 20+ wholesale lenders. No credit pull at the first call.
(877) 870-0007Want the short version?
This guide covers everything. If you would rather have the essentials only, our step-by-step first-home walkthrough gets you to a real monthly payment in about a minute.
Buy your first home: the simple step-by-step guide →