First-Time Home Buyer

Buying your first home is a big step. We are here to make it less overwhelming. From understanding loan options to navigating the closing process, we walk beside you the entire way.

How Does Buying Your First Home Work?

Buying your first home follows a predictable sequence: pre-qualification, house hunting, an accepted offer, appraisal, inspection, title work, escrow, and closing. Each step has its own timeline and costs. There is a lot to learn, and most of the industry does not bother to explain it.

At Mortgage Austin, education comes first. We believe you should understand every step of the process before you sign anything. We take the time to explain your options, answer your questions, and make sure you feel confident about one of the biggest financial decisions of your life.

First-time buyers in Texas have access to a range of programs that can help with down payments and closing costs. We will walk you through what is available and help you determine which options make the most sense for your situation.

Key facts:

  • Down payment: as low as 0% (VA), 3% (conventional first-time programs), or 3.5% (FHA)
  • Closing costs: plan for 2% to 5% of the purchase price
  • Many programs count you as first-time if you have not owned a home in the past 3 years
  • Gift funds are often allowed toward the down payment
  • Conventional 97 allows 3% down up to the 2026 conforming loan limit of $832,750 (FHFA)

First-Time Buyer Advantages

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Education First

We explain everything in plain English before you commit. Loan types, costs, timelines, and what to expect at every stage. No jargon, no surprises.

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Low Down Payment Options

Programs like Conventional 97, FHA, and VA allow down payments as low as 0-3.5%. Homeownership may be closer than you think.

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One-on-One Guidance

You will work directly with your loan officer from start to finish. No handoffs, no call centers. Every question gets answered by someone who knows your file inside and out.

Who Counts as a First-Time Home Buyer?

Many loan programs define a first-time buyer as someone who has not owned a home in the past three years, so you may qualify even if you owned a home before. Down payments run as low as 0% to 3.5% depending on the program, and closing costs typically add 2% to 5% of the purchase price. Here is what to keep in mind:

ProgramMinimum down payment
Conventional 973%
FHA3.5%
VA0%

✓ Pre-qualification: Start here. We review your income, credit, and debts to determine what you can comfortably afford.

✓ Loan options: FHA, Conventional, and VA loans are all available to first-time buyers, each with different benefits.

✓ Down payment: You may need as little as 0-3.5% depending on the program. Gift funds may also be allowed.

✓ Closing costs: Plan for 2-5% of the purchase price in closing costs. Seller contributions can help offset these.

✓ Homebuyer education: Some programs require a homebuyer education course. These are often free and available online.

The most important thing is to start the conversation early. The sooner we understand your goals and financial picture, the better we can prepare you for a successful purchase.

Frequently Asked Questions

What qualifies someone as a first-time homebuyer?
For most mortgage programs, a first-time homebuyer is defined as someone who has not owned a home in the past three years. This means even if you owned a home previously, you may still qualify for first-time buyer programs and benefits if enough time has passed since you last had ownership.
How much do first-time homebuyers need for a down payment?
First-time buyers have access to several low down payment options. Conventional loans offer 3% down programs like HomeReady and Home Possible. FHA loans require 3.5% down. VA loans offer zero down for eligible veterans. Texas also has down payment assistance programs through TSAHC and other agencies that can help cover your down payment and closing costs.
What is a pre-approval and why do I need one?
A mortgage pre-approval is a lender’s written commitment that you qualify for a specific loan amount based on a review of your credit, income, assets, and debts. Having a pre-approval letter shows sellers that you are a serious, qualified buyer and strengthens your offer in a competitive market.
What are closing costs and how much should I expect to pay?
Closing costs are the fees associated with finalizing your mortgage and typically range from 2% to 5% of the purchase price. These include lender fees, appraisal costs, title insurance, escrow deposits, and prepaid items like homeowners insurance and property taxes. In many cases, you can negotiate for the seller to cover some or all of your closing costs.
What credit score do I need to buy my first home?
The minimum credit score depends on the loan type. FHA loans accept scores as low as 580 with 3.5% down. Conventional loans typically require at least 620. VA loans do not have a strict minimum, but most lenders prefer 620 or higher. Working with an independent mortgage broker helps you find the right program for your credit profile.

Ready to Buy Your First Home?

No pressure, no obligation. Let us walk you through your options and find the right fit for your situation.

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