Buying your first home
How much cash you need, which program fits, how long each step takes. I answer every question, in Vietnamese or English, before you sign anything.
NMLS 2797128 5.0/5 from 21,774 Google reviews of Loan Factory
How much cash do you need?
- Down payment
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- Closing costs
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- Reserves
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Illustration only. Not a quote or a commitment to lend.
Monthly payment
- Principal & interest
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- Property tax
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- Home insurance
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- PMI
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- HOA
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- Loan amount
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Illustration only. Not a quote or a commitment to lend.
Common first-time buyer programs
FHA
Backed by the Federal Housing Administration and made by private lenders. More flexible on credit scores, with a low down payment.
HomeReady and Home Possible
Fannie Mae and Freddie Mac programs with a low down payment, for buyers whose income is within the limit for their area.
Conventional
The more you put down, the lower your payment. Put down enough and you skip mortgage insurance (PMI).
VA
For veterans, active-duty service members and eligible spouses. No monthly mortgage insurance. A one-time VA funding fee usually applies; some veterans are exempt.
Down payment assistance
Washington, California and Oregon all have down payment assistance programs for first-time buyers. I’ll check whether you qualify.
Self-employed
No W-2? There are programs that qualify you on bank statements. Learn more
FHA or conventional: pick on total cost, not the program name
| FHA | Conventional | |
|---|---|---|
| Credit score | Accepts lower scores | The higher your score, the better the pricing |
| Mortgage insurance | An upfront premium plus an annual premium. With a small down payment, the annual premium usually lasts for the life of the loan | Monthly PMI that can be removed once you have enough equity |
| Best for | Lower credit scores, limited savings | Good credit, wanting to drop mortgage insurance after a few years |
The first-year payment can look almost the same on both. The total cost a few years in usually does not. I run both on the same home so you can compare before you choose.
Buy now or wait?
A good fit when
- You plan to stay in the home for at least a few years
- The monthly payment, with taxes and insurance, still leaves room for repairs and everyday life
- You still have savings left after the down payment and closing costs
- Your income is steady and you are not about to change jobs
Not yet when
- You might have to move in the next year or two
- The down payment would take every dollar you have saved
- You are about to change jobs or open a business: new income takes time to document
- The amount you qualify for is more than you are comfortable paying each month
I don’t predict rates. What I can calculate is your payment against the rent you pay now, and how much cash you keep after buying. If the numbers aren’t there yet, I’ll tell you what to prepare.
Documents to gather
- A current ID or driver’s license
- W-2s or 1099s for the last 2 years
- Pay stubs for the last 30 days
- Bank statements for the last 2 months
- Green card or visa, if you’re not a citizen
The steps
A 15-minute call
I ask about your income, your savings and where you want to buy.
Pre-approval
Usually 1 to 3 days once your documents are in.
Shop with your realtor
You know exactly what price range you can buy in.
Underwriting
Usually 30 to 45 days from the signed purchase contract.
Get the keys
Sign the final documents and move in.
What clients say about Loan Factory
dave is the best! as a first time homebuyer dave explained everything to me and always answered any questions i had. thank you!
I had a great experience working with Dave and Steve. They were nothing but reliable and made the entire home buying process as simple as can be for a first time buyer! Any question I had was answered quickly and both were super knowledgable. They made sure to keep me updated throughout the process, and sat down with me to make sure I had a good understanding where all these numbers were coming from. I couldn't recommend them enough!
Ms.Swarna was very patient and understanding throughout the whole loan process. We had a lot of questions and concerns since it was our first home buying process, she patiently explained clearly what all is needed and why. We are very grateful for all her help. If you are trying for a home she will be the perfect person to go to.
Google reviews of Loan Factory, the company I work with: 21,774 reviews, 5.0 average.
Bring any other quote. Let's compare.
Loan Factory figures, from loanfactory.com.
Send me your numbers. I’ll tell you honestly if it makes sense.
Common questions
What credit score do I need to buy a home?
It depends on the program. FHA accepts lower scores than conventional. Tell me your score range and I’ll tell you which programs are open and what to work on.
Should I get pre-approved before I start looking?
Yes. You’ll know exactly what you can afford, and sellers usually take an offer with a pre-approval more seriously.
What do I pay besides the down payment?
Closing costs and some cash reserves. The calculator above includes both. The seller may pay part of your costs if you negotiate it.
Can I use money my parents give me?
Usually yes, with a gift letter and documents that show where the money came from. Each program has its own rules.
Can I use money my family sends from Vietnam?
Often, yes, if you can document where it came from and have a gift letter. Each program has its own rules on paperwork and how long the money must sit in your account, so talk to me before the transfer.
I’m new to the US and have no credit score. Can I still buy?
Some programs accept other payment history, such as rent, utilities and phone bills. Tell me how long you’ve been in the US and your residency status, and I’ll tell you which programs are open and what to prepare.