Mortgages
Best Mortgage Lenders for First-Time Buyers
Your first mortgage is the one where lender choice matters most: down payment programs, closing-cost help, and patience with thinner credit files. These are the lenders we rank highest for first-time buyers.
Top matches
Rocket Mortgage
- ✓ONE+ lets eligible buyers put 1% down, with Rocket adding a 2% grant and no PMI
- ✓FHA loans with 3.5% down
- ✓Named best for first-time home buyers by NerdWallet for September 2026
- ✗ONE+ requires income at or below 80% of county median and a 620 FICO
Home Lending
- ✓Homebuyer Grant of $2,500 or $5,000 in eligible census tracts, applied first to the rate, then fees, then down payment
- ✓DreaMaker loan with as little as 3% down; the grant also works on Standard Agency, FHA, and VA loans
- ✓Closing Guarantee pays $5,000 if an eligible on-time closing is missed
Guild Mortgage
- ✓1% Down program: you contribute 1% and Guild covers the other 2%, up to $5,000
- ✓600 minimum credit score, with conventional, FHA, VA, USDA, renovation, and ITIN loans
- ✓Lock and Shop rate lock of up to 120 days, plus a one-time float-down option
- ✓MyPath2Own gives first-time buyers up to $4,000 toward down payment or closing costs
Mortgage
- ✓Closing cost credit of 0.25% of the loan amount, up to $750, for existing customers who set up autopay from a U.S. Bank checking account
- ✓Wide range of loan products; named best for manufactured home loans by NerdWallet for September 2026
- ✓Branch and online support
New American Funding
- ✓Pathway to Homeownership gives qualified first-time buyers up to $6,000 toward down payment, closing costs, or upfront expenses
- ✓Strong FHA and government loan programs; a top-10 FHA lender by volume
- ✓Manual underwriting for thin credit, plus non-QM, reverse, construction, and FHA 203(k) loans
- ✗Average APRs run less competitive than peers
How we ranked these: We ranked every first-time-buyer-tagged lender in our database by our overall methodology score, which weighs approachability, rates and fees, and process.
Last updated June 2026
Questions, answered
How much do I really need for a down payment?
Less than the 20% folklore. Conventional first-time-buyer programs start at 3% down, FHA at 3.5%, and VA at zero for eligible military borrowers. Below 20%, you pay mortgage insurance on conventional and FHA loans. Worth modeling, not a reason to wait years.
What credit score do I need for a first mortgage?
FHA loans can go as low as 580. Conventional loans generally want 620 and up, with the best pricing around 740. If you are close to a threshold, a few months of on-time payments and lower card balances can move your rate meaningfully. Real money.
What first-time buyer assistance actually exists?
Three layers: lender credits like closing-cost contributions, state and local down payment assistance programs, and loan programs with reduced rates or insurance. Ask every lender you compare what they offer first-time buyers specifically. Then check your state housing agency.
Should I get preapproved before house hunting?
Yes. A preapproval tells you your real budget, signals to sellers that your offer is serious, and surfaces credit problems while there is still time to fix them. Multiple mortgage inquiries within about 45 days count as one for scoring purposes, so shop freely.