First-Time Homebuyer
What does a first-time homebuyer loan actually involve?
A first-time homebuyer loan is any loan structured around the fact that you have not done this before, usually a lower down payment, flexible credit guidelines, and help covering closing costs. Most first-time buyers in Central Texas use FHA or conventional financing, often paired with seller concessions or a seller-paid rate buydown.
Where owning actually starts
First-time buyers are the reason I do this work. Affordability and access were real barriers in my own family growing up, so the moment somebody gets the keys to a place that is actually theirs is the part of this job I care most about.
Here is what usually surprises people. You almost never need 20 percent down. Conventional financing can start at 3 percent down, FHA at 3.5 percent, and there are ways to have the seller cover part of your closing costs or buy your rate down for the first couple of years. Whether any of that is available to you depends on the property, the seller, and the moment. That is a conversation, not a calculator.
What I will do is show you the real math first. Total monthly payment including taxes and insurance, cash you actually need at the table, and what changes if you wait six months. No hard credit pull, no application, until you understand what you are looking at.
Quick facts
- Down payment
- As low as 3% (conventional) or 3.5% (FHA)
- Credit guidelines
- Flexible, FHA works with credit still being rebuilt
- Typical timeline
- Typically 30 to 45 days from contract to close
- Occupancy
- Primary residence only
What it usually takes
- A rough sense of your income and what you owe monthly
- An honest ballpark on credit, we can work with a wide range
- Whatever you have saved, including gift funds from family
- A conversation about the neighborhoods you are actually looking at
Guidelines vary by lender, and I shop across more than 40 of them. Missing one of these is a reason to talk, not a reason to assume the answer is no.
This is not a commitment to lend. All loans are subject to credit approval, income and property verification. Rates, terms, and programs are subject to change without notice. Nook Lending is powered by MPA Home Loans. Jennifer Ferrara, Loan Officer, NMLS #2781982. MPA Home Loans NMLS #2778343. Equal Housing Opportunity.
Jennifer Ferrara
Loan Officer · NMLS #2781982
Fourteen years navigating real estate deals taught me to listen before I recommend anything. Tell me what you're working with, and let's talk it through.
Where I Lend
Licensed throughout Texas, and I speak Spanish. Don't see your town? Ask, I am probably still in reach.
Cities I specialize in:
Kyle, TX · Buda, TX · San Marcos, TX · South Austin · Dripping Springs, TX · Driftwood, TX
See all service areasIs this loan right for you?
This fits if
Anyone buying their first home, or buying again after several years away from ownership.
Look elsewhere first if
If you're carrying significant debt or need a rental to qualify, DSCR or Non-QM may be the better starting point.
Pros
- Low down payment options, sometimes as little as 3%
- Seller can contribute toward closing costs
- Rate buydowns available to ease the first two years
- Gift funds from family allowed toward the down payment
Cons
- Mortgage insurance usually required below 20% down
- Competitive markets can mean fewer seller concessions
- More documentation than an all-cash offer
Questions people actually ask
About First-Time Homebuyer
Usually, yes. I shop your file across more than 40 wholesale lenders instead of quoting one bank's rate sheet, and the spread between the best and worst quote on an identical file is real money over the life of the loan. There is no added cost to you for that shopping, it is how brokers get paid by the lender you close with.
Other options
Worth comparing against
Very few files have exactly one right answer. These are the ones that most often come up alongside this.
Conventional
Buyers with solid credit who want the lowest long-run cost and want mortgage insurance to eventually go away.
FHA
Buyers rebuilding credit, carrying more debt than conventional allows, or working with a small down payment.
Jumbo
Buyers in the higher price bands, often self-employed professionals and move-up buyers.
Self-Employed / Bank Statement
1099 contractors, business owners, and anyone whose tax return understates what they really earn.
Where this fits
Reviewed by Jennifer Ferrara, NMLS #2781982 · Last updated 2026-08-11
Wondering if First-Time Homebuyer is right for you?
Send me the specifics and I will tell you what actually fits. If a different program serves you better, that is what I will say.