What credit score do first-time buyer programs require?

620 for 3% conventional, 580 for FHA, and 640 for many state assistance programs.

Purchase

First-time home buyer programs

3% down on conventional loans
State down payment assistance
Pairs with FHA or VA

See first-time buyer rates Check the basics

What is a first-time buyer program?

First-time buyer programs lower the cash needed to buy a home through 3% down conventional loans, 3.5% down FHA loans, and state down payment assistance. You count as a first-time buyer if you have not owned a primary residence in the past three years.

Ways to set it up

Choose these when you lock your rate. You’ll see the cost of each option in dollars.

Term: 15–30 years; Most state assistance programs require a 30-year fixed first mortgage.
Fixed or adjustable: Fixed, usually; ARMs are allowed on some programs but not with most state assistance. How ARMs work →
Temporary buydown: 2-1 · 1-0; Lowers your rate for the first 1–2 years (for example, a 2-1 buydown). Usually paid by the seller or builder. Purchases only; you qualify at the full rate. Some assistance programs don’t allow it.
Discount points: Optional; Pay upfront to lower your rate for the life of the loan. We show the break-even month for each option.

What you need to qualify

Typical guidelines. Your pre-approval confirms eligibility.
Requirement	Guideline	Notes
First-time definition	No primary residence owned in 3 years	Includes previous owners who have rented for 3+ years
Down payment	3% – 3.5%	HomeReady / Home Possible at 3%; FHA at 3.5%
Minimum credit score	620 conventional · 580 FHA	Some state assistance programs require 640
Income limits	≤ 80% AMI for HomeReady / Home Possible	FHA has no income limit; state programs vary
Homebuyer education	Required for 3% conventional	Online course, about 4 hours
Assistance	State DPA programs	Grants, forgivable seconds, or deferred loans depending on program

Check the basics

A quick starting point, not an approval. Three questions, no credit check. Your full application confirms income, assets, and more.

Have you owned a home in the last 3 years?

Household income vs. area median?

What’s your credit score?

Answer the questions to see your result.

An estimate based on typical guidelines. Not a pre-approval or commitment to lend.

Pros and cons

Pros

Down payments as low as 3%
State assistance can cover down payment or closing costs
Reduced mortgage insurance on some programs
Works with conventional, FHA, or VA

Cons

Income and purchase price limits apply
Homebuyer education course required
Some assistance must be repaid when you sell or refinance
Program funds can run out

Common questions

Who qualifies as a first-time home buyer?

Anyone who has not owned a primary residence in the past three years, including previous owners, plus certain single parents and displaced homemakers who only owned with a former spouse.

How much do first-time buyers need to put down?

As little as 3% with HomeReady or Home Possible, or 3.5% with FHA.

What down payment assistance is available in Texas?

Programs through the Texas Department of Housing and Community Affairs and Texas State Affordable Housing Corporation offer assistance for down payment and closing costs, subject to income and price limits.

Do I have to pay assistance back?

It depends on the program. Some assistance is a grant, some is a forgivable second lien that disappears after a set number of years, and some is a deferred loan repaid when you sell or refinance.

Is homebuyer education required?

Yes for 3% down conventional programs and most state assistance. It is a short online course, typically about four hours.

Can I combine first-time buyer programs with an FHA or VA loan?

Often yes. State assistance can usually be layered on top of FHA, VA, or conventional first mortgages.

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Disclosures

Down payment assistance is administered by state housing agencies. Funds are limited and subject to availability.
Assistance terms, including repayment, vary by program.
Rates, terms, and programs are subject to change without notice and to credit and property approval. Not all applicants will qualify.
Lendid Loans, LLC is a licensed mortgage broker in Texas, Florida, Colorado, and Oklahoma. All loans originated through Lendid Direct are brokered by Lendid Loans, LLC. This is not a commitment to lend. Programs, rates, terms, and conditions are subject to change without notice. All loans subject to credit approval. NMLS# 1470572.
Equal Housing Opportunity.