How much do I need for a down payment as a first-time buyer?

As little as 3.5% with an FHA loan. On a $300,000 home, that is just $10,500. Plus, you may qualify for down payment assistance programs that can cover some or all of your down payment.

What credit score do I need to buy my first home?

You can qualify for an FHA loan with a credit score as low as 580 (or 500 with 10% down). Conventional loans typically require 620+. Daisy can help you understand your options based on your specific credit situation.

Am I considered a first-time homebuyer if I owned a home before?

For most programs, you are considered a first-time buyer if you have not owned a home in the past 3 years. So if you owned previously but have been renting for 3+ years, you may still qualify for first-time buyer programs.

How long does it take to buy a home?

From starting to work with a loan officer to closing, the typical timeline is 30-60 days once you find a home. The house hunting phase varies depending on the market and your criteria.

What is the difference between pre-qualification and pre-approval?

Pre-qualification is a quick estimate based on self-reported information. Pre-approval involves verifying your income, credit, and assets, resulting in a formal letter that shows sellers you are a serious, qualified buyer.

How much house can I afford?

A general rule is that your monthly housing payment should not exceed 28-31% of your gross monthly income. However, this varies based on your other debts and expenses. Daisy can help you calculate your specific buying power.

Do I need a real estate agent?

While not required, a buyer's agent is highly recommended. They can negotiate on your behalf, guide you through the process, and help you avoid costly mistakes. Be sure to discuss compensation arrangements upfront with any agent you work with.

What are closing costs?

Closing costs are fees for services like appraisal, title insurance, attorney fees, and lender fees. They typically run 2-5% of the purchase price. Some can be negotiated with the seller or covered by DPA programs.

First-Time Homebuyer Guide Houston TX — Everything You Need to Know

Buying your first home can be overwhelming. This guide will walk you through the process step by step.

Ready to own your first home? Daisy is here to guide you.

Start My Journey 832-894-7676

First-Time Homebuyer Guide

Follow these steps to buy your first home with confidence.

Before You Start

Check your credit score (aim for 580+ for FHA)
Calculate your debt-to-income ratio
Save for down payment (as low as 3.5% with FHA)
Gather 2 years of tax returns
Collect recent pay stubs and bank statements

Getting Pre-Approved

Contact a loan officer (like Daisy!)
Submit application and documents
Get pre-approval letter
Understand your budget
Learn about loan options

House Hunting

Find a real estate agent
Define your must-haves vs. nice-to-haves
Research Houston neighborhoods
Schedule home tours
Make an offer

Under Contract

Schedule home inspection
Complete appraisal
Finalize your loan
Get homeowner's insurance
Review closing disclosure

Closing Day

Do final walkthrough
Bring ID and certified funds
Sign closing documents
Get your keys!
Celebrate your new home!

Download Free Homebuyer Guide

Get a printable version to track your progress.

Loan Options for First-Time Buyers

There are several financing options designed for first-time buyers.

3.5% Down

FHA Loans

Government-backed loans with low down payment and flexible credit requirements. Perfect for first-time buyers.

Best for: Credit scores 580+, limited savings

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Up to $40K

Down Payment Assistance

Grants and forgivable loans to help cover your down payment and closing costs.

Best for: Income-qualified buyers, Houston area

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No SSN Required

ITIN Loans

Buy a home without a Social Security Number using your ITIN.

Best for: Immigrant families with ITIN

Learn More

3-20% Down

Conventional Loans

Traditional financing with competitive rates. PMI removable at 80% LTV.

Best for: Credit scores 620+, larger down payment

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0% Down

VA Loans

For eligible veterans, active-duty military, and surviving spouses. Zero down payment required and no private mortgage insurance (PMI). One of the best loan options available if you qualify.

Best for: Veterans, active-duty military, surviving spouses

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0% Down

USDA Loans

Zero down payment for buyers purchasing in eligible rural and suburban areas near Houston. Income limits apply. Great option for homes in Katy, Fulshear, Waller County, and surrounding areas.

Best for: Buyers in eligible rural/suburban areas

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Self-Employed

Non-Traditional Loans

If you're self-employed, a contractor, or your income doesn't fit the standard W-2 mold — options like Bank Statement loans, P&L loans, Asset-Based loans, 1099 loans, and WVOE loans may be right for you.

Best for: Self-employed, contractors, non-W2 income

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Common Mistakes to Avoid

Learn from others' mistakes for a smoother buying experience.

Not getting pre-approved first

Get pre-approved before house hunting. Sellers take you more seriously, and you know your budget.

Making big purchases before closing

Avoid buying cars, furniture, or taking new credit cards until after you close. It can affect your approval.

Skipping the home inspection

Never skip the inspection. It's worth the cost to know what you're buying.

Not knowing about DPA programs

Many buyers leave thousands on the table. Ask about down payment assistance programs.

Ignoring closing costs

Budget 2-5% of the purchase price for closing costs in addition to your down payment.

First-Time Buyer FAQs

Ready to Buy Your First Home?

Daisy has helped hundreds of first-time buyers in Houston. Let her guide you too.

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