Almost everything you have been told about buying your first house is a little out of date. You do not need twenty percent down. You do not need perfect credit. What you do need is someone who will tell you which of the low-down-payment routes actually fits your situation, because they are not interchangeable.
You have never owned a home — or have not owned one in the last three years, which counts as first-time for most programs
You have some savings but nowhere near twenty percent
Your credit is fine but not spotless
Someone may be able to gift you part of the down payment
How it works
There are four realistic low-down-payment routes
Conventional financing goes as low as three percent down and its mortgage insurance comes off once you have enough equity. FHA takes three and a half percent with more forgiving credit, but the mortgage insurance now stays for the life of most loans. VA is zero down with no monthly mortgage insurance if you have entitlement. USDA is zero down if the property is in an eligible area — and far more of the country qualifies than people assume. Which one wins depends on your credit score, the property, and how long you plan to keep the loan.
Gift funds are allowed, with rules
A family member can gift you the down payment on every one of those programs. What underwriters care about is the paper trail: a gift letter stating it does not have to be repaid, and documentation of the money leaving the giver's account and arriving in yours. Cash handed over in person is the one version that causes problems. Tell us early and we will set it up so it does not blow up in underwriting.
Closing costs are separate from the down payment
This is the number that surprises people. Beyond the down payment there are lender fees, title, appraisal, recording, and prepaid taxes and insurance. A seller can often be asked to cover part of it, and some loan structures let you finance it. That is a conversation to have before you write an offer, not after.
The honest part
The lowest down payment is not automatically the best deal. Putting three percent down on an FHA loan can cost you more over five years than putting five percent down on a conventional loan, once mortgage insurance is counted — and the reverse is true at lower credit scores. That is exactly the comparison we run for you, and it is the reason a broker beats a single lender here.
Common questions
How much do I actually need to buy a house?
Between three and five percent of the price for most buyers, plus closing costs — and zero down if you qualify for VA or USDA. Gift funds from family are allowed on all of them.
What credit score do I need?
Conventional financing generally starts around 620, FHA can go lower, and VA and USDA lenders set their own floors. Below 620 it is usually worth spending sixty days improving the score before applying rather than accepting worse terms.
Does getting pre-approved hurt my credit?
A full pre-approval involves a credit pull, which typically costs a few points and recovers quickly. Our pre-approval start form does not pull credit at all — it is just questions.
First-Time Home Buyer near you
Tyler McCain is based in Lebanon, TN and works across the Nashville metro.
That depends on numbers we have not seen yet. Two minutes, no credit pull, and
Tyler will tell you straight — including if the answer is a
different programme entirely.
