Today’s Rate
07/14/2026
First Time Home Buyer
Loans & Programs
Your journey to homeownership starts here. Discover loan options and assistance programs designed to make buying your first home more affordable.
3%
Down payment options
$0
Down on VA & USDA
6+
Programs to explore
Who qualifies as a first-time homebuyer?
The 3-Year Rule
A first-time homebuyer is generally someone who has not owned a primary residence in the past three years. You may also qualify if you have never owned a home, are a single parent or displaced homemaker who only owned with a former spouse, or owned a residence that was not permanently affixed to a foundation.
Do You Qualify?
You have never owned a home
You have not owned a home in the past 3 years
You are a single parent who only owned a home with a former spouse
You are a displaced homemaker who only owned a home with a spouse
You only owned a principal residence not permanently affixed to a foundation (e.g., a mobile home)
Available loan programs
Explore popular financing and assistance options for first-time buyers.
FHA Loan
A government-backed loan insured by the FHA, designed to help buyers with lower credit scores or smaller down payments.
Down payment as low as 3.5% (for credit scores ≥ 580)
10% down required for credit scores between 500–579
Competitive interest rates
More flexible debt-to-income (DTI) requirements than conventional loans
Requires Mortgage Insurance Premium: upfront (1.75%) + annual premium
2025 loan limits: up to $524,225 in most counties; up to $1,209,750 in high-cost Bay Area counties
Best for: Buyers with credit scores between 580–679 or limited savings for a down payment.
VA Loan
A government-backed loan available to eligible veterans, active-duty service members, and surviving spouses.
No down payment required
No Private Mortgage Insurance
Competitive interest rates
VA Funding Fee applies; waived for veterans with qualifying disabilities
No loan limit for eligible borrowers with full entitlement
Certificate of Eligibility (COE) required
Best for: Eligible veterans and military personnel purchasing their first home.
Conventional 97 Loan
Conventional mortgage backed by Fannie Mae or Freddie Mac allows first-time buyers to put as little as 3% down.
Down payment as low as 3%
No upfront mortgage insurance premium
PMI required until 20% equity is reached — then it can be cancelled
Minimum credit score typically 620
Available for single-family homes, condos, and PUDs
Best for: Buyers with good credit (620+) who want a low down payment without FHA’s upfront MIP.
USDA Loan
A government-backed loan for buyers purchasing in eligible rural and suburban areas.
No down payment required
Below-market interest rates
Upfront guarantee fee (1%) + annual fee (0.35%)
Household income must be within USDA limits (typically ≤ 115% of area median)
Property must be in a USDA-eligible area
Best for: Buyers purchasing in suburban or rural communities outside major metro areas.
CalHFA Loans
California Housing Finance Agency — California residents only
State-sponsored loan programs available exclusively to California residents, offering below-market interest rates and down payment assistance.
Programs Include
CalHFA FHA Loan
FHA first mortgage paired with a CalHFA interest rate.
CalHFA Conventional Loan
Conventional first mortgage paired with a CalHFA interest rate.
MyHome Assistance Program
Deferred-payment junior loan up to 3.5% of price or appraised value for down payment and/or closing costs.
Zero Interest Program (ZIP)
Zero-interest junior loan for closing cost assistance.
Dream For All Shared Appreciation
Up to 20% of the purchase price as down payment help; you share a portion of appreciation with CalHFA on sale or refinance.
Programs Include
Must be a first-time homebuyer (no ownership in past 3 years)
Must occupy the property as your primary residence
Must complete a HUD-approved homebuyer education course
Income limits apply based on county and household size
Purchase price limits apply based on county
Best for: California first-time buyers seeking state-funded assistance with down payment or closing costs.
Down Payment Assistance (DPA) Programs
Local city, county & nonprofit programs
Local city, county, and nonprofit programs that provide grants or low/zero-interest loans to help cover down payment and closing costs.
Common Program Types
Grants
Funds that do not need to be repaid by the borrower.
Forgivable Loans
Forgiven after a set period of owner-occupancy (e.g., 3–5 years).
Deferred-Payment Loans
Repayment deferred until the home is sold, refinanced, or paid off.
Matched Savings Programs
Program matches your savings dollar-for-dollar up to a limit.
Examples in the Bay Area
City of San Jose Below Market Rate (BMR) Program
San Francisco Down Payment Assistance Loan Program (DALP)
Alameda County WISH Program (Workforce Initiative Subsidy for Homeownership)
Santa Clara County First Home Program
Best for: Availability, funding amounts, and eligibility criteria vary by program and are subject to change. Contact a Pacificwide specialist for current program availability.
Benefits of First-Time Buyer Programs
These programs reduce the two biggest barriers to homeownership: upfront cash and credit.
Reduced Interest Rates
State and government programs offer below-market rates.
No PMI (Select Loans)
VA and USDA loans eliminate monthly mortgage insurance.
Lower Down Payment
Many programs allow as little as 0%–3.5% down.
Down Payment Assistance
Grants and deferred loans reduce your upfront costs.
Flexible Credit Requirements
FHA and other programs accept lower credit scores.
Closing Cost Help
Certain programs cover part or all of your closing costs.
Homebuyer Education
Programs prepare you with the knowledge to sustain homeownership.
Not sure which program fits you?
A quick conversation with a Pacificwide specialist can point you to the loan and assistance programs you’re most likely to qualify for — at no cost and no obligation.
How to Get Started
Seven steps take you from “maybe someday” to the keys in your hand — with a Pacificwide specialist beside you.
1
Check Your Eligibility
Determine whether you meet the first-time buyer definition and review income and purchase-price limits for your county.
2
Review Your Finances
Know your credit score, monthly income, existing debts, and available savings.
3
Get Pre-Approved
Connect with a Pacificwide mortgage specialist to obtain a pre-approval letter — this shows sellers you are a serious buyer.
4
Explore Programs
Work with your specialist to identify which loan programs and down payment assistance options best fit your situation.
5
Complete Homebuyer Education
Many programs require a HUD-approved homebuyer education course; Pacificwide can refer you to approved providers.
6
Find Your Home
Partner with a Pacificwide real estate agent to search for eligible properties within your budget.
7
Close on Your Home
Your Pacificwide team guides you through the offer, escrow, and closing process.
FAQs
Answers to the questions first-time buyers ask us most.
Do I have to be a U.S. citizen to qualify for first-time homebuyer programs?
Not necessarily. FHA loans may be available to permanent residents and certain non-permanent residents with eligible visa status. State programs can have additional requirements, so speak with a specialist.
Can I use gift funds for my down payment?
Yes. Many programs allow gift funds from family members, with documentation of the gift source. Rules vary by loan type.
What is a homebuyer education course and is it required?
A HUD-approved homebuyer education course covers budgeting, the purchase process, and homeownership responsibilities. It is required for CalHFA and many assistance programs, and is strongly recommended for all first-time buyers.
How long does the pre-approval process take?
Pre-approval typically takes 1–3 business days after all requested income, asset, tax, and identification documents are submitted.
Can I qualify if I have student loan debt?
Yes. Student loans are included in your debt-to-income calculation but do not automatically disqualify you.
What credit score do I need?
Requirements vary: FHA may allow scores as low as 500, Conventional 97 typically starts at 620, USDA commonly requires 640+, and VA requirements vary by lender.
Can my spouse and I apply together even if only one of us is a first-time buyer?
In most programs, all borrowers on the loan must meet the first-time buyer definition. However, some programs have exceptions. A Pacificwide specialist can review your specific situation.
Disclaimer
The loan program information provided on this page is intended for general educational purposes only. Loan limits, interest rates, fees, and program availability are subject to change without notice. Pacificwide does not guarantee that any user will qualify for any specific loan or assistance program. All loan approvals are subject to underwriting review, credit approval, and applicable program guidelines. For information specific to your financial situation, please consult a licensed Pacificwide mortgage specialist.
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