First-Time Buyers
Your first home, explained simply
No jargon. Just a clear path from “Can I afford this?” to keys in hand—with a loan officer beside you at every step.
Start here
Buying your first home does not have to feel overwhelming
Most first-time buyers have the same questions: How much can I afford? How much cash do I need? Which loan is right for me? Clear Mortgage helps you answer those before you start touring homes—so you shop with confidence instead of guesswork.
The path
Five steps from curiosity to closing
You do not need to know everything on day one. Follow this order and we will fill in the details with you.
Figure out a comfortable monthly payment
Start with what you can afford each month—not the biggest loan you can get. Include the house payment, taxes, insurance, and any HOA dues.
Get pre-approved before you shop
A pre-approval shows sellers you are serious and tells you a realistic price range. You will share income, credit, and savings with a loan officer.
Choose a loan path that fits your cash and credit
Many first-time buyers use FHA, a low-down-payment conventional loan, VA, USDA, or local assistance. Your loan officer compares options side by side.
Shop homes inside your range
Work with your agent and loan officer together. When taxes or HOA dues change by house, your payment can change too—so check before you offer.
Close and get your keys
After your offer is accepted, appraisal, insurance, title, and final paperwork finish the process. Respond quickly to document requests so closing stays on track.
Loan options
Common ways first-time buyers finance a home
There is no single “first-time buyer loan.” Instead, we match you to a program based on your credit, down payment, military status, and where the home is located.
As low as 3.5% down
FHA loans
A common first-home option with a smaller down payment and more flexible credit guidelines than many conventional loans.
Learn more →
As low as 3% down
Conventional loans
A strong fit if your credit and savings are solid. Mortgage insurance can often be removed later once you build enough equity.
Learn more →
Often $0 down
VA loans
For eligible veterans, service members, and surviving spouses. Many buyers put nothing down and pay no monthly mortgage insurance.
Learn more →
Often $0 down
USDA loans
For eligible buyers in approved rural and suburban areas, with income and location rules. Ask us to check a property for you.
Learn more →
Example only — not an offer, advertised rate, or commitment to lend
- Loan term
- 30-year fixed
- Down payment
- $14,000 (3.5%)
- Amount financed
- $386,000
- Principal and interest
- $2,504 / month
- Interest rate
- 6.750%
- Annual Percentage Rate (APR)
- 7.010%
- Mortgage insurance
- Not included (if required, additional)
- Estimated property taxes
- $333 / month
- Hazard insurance
- $125 / month
- Total monthly payment
- $2,962 / month (PITI)
Estimated payment includes principal, interest, taxes, and insurance (PITI). Mortgage insurance and HOA dues are not included. Actual payment may vary.
Good to know
Ways to reduce cash needed at closing
Down payment help may be available
Some states and communities offer grants or second loans that reduce cash needed at closing. Rules vary by location, income, and purchase price—we will check what applies to you.
Gift funds are often allowed
Family members can sometimes gift money toward your down payment or closing costs. Your loan officer will explain how to document gifts the right way.
You do not need a huge down payment
Many first-time buyers put down 3% to 3.5%—or even $0 with VA or USDA when eligible. Closing costs are separate, and we will estimate those early.
Example only — not an offer, advertised rate, or commitment to lend
- Loan term
- 30-year fixed
- Down payment
- $14,000 (3.5%)
- Amount financed
- $386,000
- Principal and interest
- $2,504 / month
- Interest rate
- 6.750%
- Annual Percentage Rate (APR)
- 7.010%
- Mortgage insurance
- Not included (if required, additional)
- Estimated property taxes
- $333 / month
- Hazard insurance
- $125 / month
- Total monthly payment
- $2,962 / month (PITI)
Estimated payment includes principal, interest, taxes, and insurance (PITI). Mortgage insurance and HOA dues are not included. Actual payment may vary.
Who qualifies as a first-time homebuyer?
You may qualify if most of these are true for you:
- You have not owned a home you lived in as your main residence in the last 3 years
- You meet the income or other rules for the specific program you use
- You are buying a home you plan to live in (not an investment property)
Programs we offer first-time buyers
Your loan officer compares these and helps you choose a program that fits your costs and situation.
- HomeReady — As little as 3% down, often with lower mortgage insurance costs
- Home Possible — Another low-down-payment option starting at 3% down
- FHA — As little as 3.5% down—works for many buyers with credit scores around 580 or higher
- VA or USDA — $0 down when you and the property qualify
- State and local assistance — Programs that can help with down payment or closing costs where you buy
Example only — not an offer, advertised rate, or commitment to lend
- Loan term
- 30-year fixed
- Down payment
- $14,000 (3.5%)
- Amount financed
- $386,000
- Principal and interest
- $2,504 / month
- Interest rate
- 6.750%
- Annual Percentage Rate (APR)
- 7.010%
- Mortgage insurance
- Not included (if required, additional)
- Estimated property taxes
- $333 / month
- Hazard insurance
- $125 / month
- Total monthly payment
- $2,962 / month (PITI)
Estimated payment includes principal, interest, taxes, and insurance (PITI). Mortgage insurance and HOA dues are not included. Actual payment may vary.
Common questions
What first-time buyers ask us most
How much money do I need to start?
It depends on the loan and the home. Plan for a down payment (sometimes as low as 0–3.5%), closing costs, and a little cushion after you move in. A loan officer can give you a cash-to-close estimate before you shop.
What credit score do I need?
Requirements vary by program. FHA can be more flexible for many buyers; conventional loans often prefer stronger credit. We look at your full picture—income, debts, and savings—not just a score.
Should I get pre-approved or pre-qualified?
Pre-approval is usually stronger. It typically includes a credit check and documented income and assets, which sellers take more seriously than a rough pre-qualification based on self-reported numbers.
What should I avoid while buying?
Avoid new credit cards, car loans, large purchases, job changes, and large unexplained deposits when possible. Tell your loan officer right away if something big changes so your approval stays on track.
Example only — not an offer, advertised rate, or commitment to lend
- Loan term
- 30-year fixed
- Down payment
- $14,000 (3.5%)
- Amount financed
- $386,000
- Principal and interest
- $2,504 / month
- Interest rate
- 6.750%
- Annual Percentage Rate (APR)
- 7.010%
- Mortgage insurance
- Not included (if required, additional)
- Estimated property taxes
- $333 / month
- Hazard insurance
- $125 / month
- Total monthly payment
- $2,962 / month (PITI)
Estimated payment includes principal, interest, taxes, and insurance (PITI). Mortgage insurance and HOA dues are not included. Actual payment may vary.
Helpful tools
Keep going at your own pace
Explore these on your own, then talk with a loan officer when you are ready for numbers tailored to you.
Guide
First-Time Buyer Guide
A deeper walkthrough of budget, credit, shopping, and closing day.
Checklist
Mortgage Checklist
Track documents and milestones so nothing gets lost along the way.
Calculators
Estimate Your Payment
Educational payment tools—then we validate real numbers with you.
Ready when you are
Talk through your first purchase
A Clear Mortgage loan officer will map your budget, check assistance options in your area, and help you get pre-approved before you write an offer.