Own Luxury Homes®

First-Time Home Buyer Guide: Complete 2026

First-time buyer median down payment: 10% (NAR 2025); minimums 3–3.5%. Cash needed on $400K: $25–45K total (down+closing+reserves). Most expensive mistake: wrong agent, not wrong loan type. Own Luxury Homes® 12-Point Agent Integrity Audit™ — first-time buyer specialists who represent you.

First-Time Home Buyer Guide: Everything Nobody Tells You Before You Sign

24%

Of home buyers in 2025 were first-timers — a 40-year low (NAR) as costs squeeze entry

$412,300

Median US home price mid-2026; median first-time buyer income: ~$80,610 — a real gap

10%

Median first-time buyer down payment in 2025 (NAR) — not 20%; 3–3.5% minimums available

Agent

The most expensive first-time buyer mistake is not the loan — it’s the wrong agent

Every first-time buyer guide is written by a lender who wants your application, a portal that earns from listings, or a financial site that gets paid when you click "compare rates." None of them can tell you the one thing that matters most: how to find the agent who actually represents you. This guide is written by a brokerage. We don’t earn from your mortgage. We earn when you are well-represented — which means we have every incentive to tell you what lenders can’t.

THE OWN LUXURY HOMES® DIFFERENCE

Every agent in our network has passed the 12-Point Agent Integrity Audit™. No dual agency. Full buyer representation. First-time buyer specialists verified in your market.

Find your first-time buyer specialist ›

First-Time Buyer Guides

Who qualifies as a first-time home buyer?

Legally, three categories qualify: (1) Never owned a primary residence, (2) haven’t owned in the past 3 years (the "3-year rule" that surprises most people), (3) displaced homemaker or single parent who owned only jointly with a spouse. The 3-year rule means millions of people who have previously owned qualify again after a gap.

How much money do I need to buy a house for the first time?

On a $400,000 home: minimum $12,000–20,000 (3–5% down) plus $8,000–16,000 in closing costs plus earnest money (1–2%, applied to closing) plus 2–6 months reserves. Total liquid cash needed: $25,000–45,000 on a $400K purchase. Down payment assistance programs can reduce this significantly.

What credit score do I need to buy a house?

Conventional loan minimum: 620. FHA with 3.5% down: 580. FHA with 10% down: 500. VA and USDA: typically 620 though no official minimum. Best rates (lowest mortgage insurance costs): 740+. Score below 620: work on credit before applying; 60–90 days of targeted improvement can add 40–80 points.

Do I need 20% down to buy a house?

No. The median first-time buyer put down 10% in 2025 (NAR). Conventional allows 3%, FHA 3.5%, VA and USDA allow 0% for eligible buyers. PMI (private mortgage insurance) applies below 20% down on conventional loans but cancels automatically at 78% LTV and costs roughly $100–$200/month on a $400K loan. Waiting to save 20% often costs more in rent paid and appreciation missed than PMI costs over the same period.

Own Luxury Homes® — audited first-time buyer specialists who represent you, not the lender. 12-Point Agent Integrity Audit™. Find your first-time buyer specialist ›

"The introduction Own Luxury Homes® makes is to a specialist with documented closing history in your specific market — not the county, not the metro, the submarket you're actually selling or buying in. That's the standard we verify before your name goes anywhere."

— Ryan Brown, Principal Broker & CEO, Own Luxury Homes® (FL License BK3626873)