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

Minimum 580 for FHA (3.5% down) or 620 for most conventional loans. For the best rates, aim for 740+. A score below 580 may still qualify for FHA with 10% down.

How much should I save before buying a home?

Budget for: down payment (3-20% of purchase price), closing costs (2-5% of purchase price), moving costs, initial repairs/furnishings, and 3-6 months of mortgage payments in emergency reserves.

Housing

First-time home buyer guide

What to know before you start looking — so you don't fall in love with a home you can't afford or miss programs that could help.

Check your credit before anything else

Your credit score determines your mortgage rate more than almost anything else. A 760 vs 680 score on a $300,000 30-year mortgage can mean $50,000-$80,000 more in total interest. Pull your free reports from annualcreditreport.com, dispute any errors, and give yourself 3-6 months to improve your score before seriously shopping.

Down payment programs you may not know about

Many first-time buyers think they need 20% down. They don't. FHA loans require 3.5% down with a 580+ credit score. Conventional loans go as low as 3%. Many states and localities have down payment assistance programs offering grants or low-interest second loans. HUD maintains a directory of approved housing counselors and state assistance programs at hud.gov.

The closing costs many buyers forget

Closing costs typically run 2-5% of the home price — on a $300,000 home, that's $6,000-$15,000 in addition to your down payment. Includes lender fees, title insurance, appraisal, attorney fees (in some states), and prepaid property tax and insurance. Budget for this separately from your down payment.

The difference between pre-qualification and pre-approval

Pre-qualification is informal — a lender's estimate based on unverified information. Pre-approval involves a real credit check and income documentation — it's what sellers take seriously. Get pre-approved before you start making offers, not after.

Budget for ongoing costs, not just the mortgage

Property taxes, home insurance, maintenance (budget 1-2% of home value annually), and possibly HOA fees. On a $300,000 home, these can easily add $500-$1,000/month to your housing cost beyond the mortgage payment.

Find out how much you can afford

Start with the calculator before you start browsing listings.

Open the calculator →