The biggest myth about buying your first home is that you need 20% down and perfect credit. Neither is true. The reality in 2026 is that you have more low-down-payment, low-credit-score-friendly programs available than at any point in modern history.
Here is the practical first-time buyer playbook for 2026.
How much down payment do you actually need?
- VA loan (if you're an eligible Veteran): $0 down
- USDA loan (if the property is in a USDA-eligible rural area): $0 down
- FHA loan: 3.5% down with a credit score of 580 or higher
- Conventional 97 / Fannie HomeReady / Freddie Home Possible: 3% down for first-time buyers meeting income limits
- Conventional standard: 5% down minimum (everyone), 20% to avoid PMI
On a $400,000 home, a 3% down payment is $12,000. That's the actual minimum for a conventional first-time buyer loan. Add closing costs of roughly 2.5% ($10,000) and you're looking at about $22,000 to get into a $400K home with a conventional loan. With FHA at 3.5% down and seller-paid closing costs (allowed up to 6% on FHA), it can be even less.
Credit score: what's the real minimum?
The credit score floors:
- VA: No official minimum (most lenders want 580-620)
- USDA: 580 typical, 620 common
- FHA at 3.5% down: 580
- FHA at 10% down: 500
- Conventional: 620
You're not getting the best interest rate at the floor, but you can qualify. Better rates start around 720, with the very best pricing at 760+. If your score is in the high 600s, fixing one or two specific items (paying down a credit card to under 30% utilization, removing an old collection, getting added as an authorized user on a clean account) can move you up 30-50 points in 60-90 days.
Down payment assistance programs
State and local DPA (down payment assistance) programs are how thousands of first-time buyers actually close. They work as either grants (free money), forgivable loans (forgiven after 5-10 years living in the home), or low-interest second mortgages.
Nevada-specific programs:
- Home Is Possible: Statewide program offering up to 5% of the loan amount as down payment assistance
- Home Means Nevada: Targeted assistance for moderate-income buyers
- Las Vegas/Clark County local programs: Varies by year, often available for buyers under specific income thresholds
Texas-specific programs:
- TSAHC (Texas State Affordable Housing Corporation): Down payment assistance and tax credits for teachers, first responders, veterans, and modest-income buyers
- TDHCA My First Texas Home: 3-5% down payment assistance with a low-interest 30-year fixed
- City-specific programs in Dallas, Houston, Austin, San Antonio
Most DPA programs require homebuyer education (a 6-8 hour online course), have income limits, and require you to live in the home as your primary residence. We'll match you with the right program for your situation when we run your numbers.
The 4 biggest first-time buyer mistakes
1. Waiting for "the perfect rate"
If rates drop from 6.30% to 5.80% but home prices climb 4% in the same year, you might end up paying more total. The math depends on the specifics, which is why we built our Cost of Waiting calculator. Run it with your actual numbers before you decide to wait.
2. Underestimating closing costs and reserves
Closing costs run 2-4% of the purchase price (less in some markets, more in others). On top of the down payment, plan for those. Plus you'll want a few months of mortgage payments in reserve for surprises.
3. Maxing out your buying power
Just because you qualify for a $500,000 home doesn't mean you should buy one. The lender's qualification math doesn't include your retirement contributions, your kids' future activities, or the new roof you might need. Buy 70-80% of your max so you have margin.
4. Skipping pre-approval
Don't waste time looking at homes before you have a written pre-approval from a lender. It tells you exactly what you qualify for, makes your offers credible to sellers, and lets you move fast when the right home shows up.
The honest truth: first-time buyers who close successfully usually share three things: a written pre-approval, a budget that's 70-80% of the max they qualify for, and a willingness to start with a "good enough" home rather than waiting for the perfect one.
What to do this week if you're starting
- Pull your credit at annualcreditreport.com (free, official). Look for errors and obvious quick wins.
- Add up everything you have for a down payment + closing costs + reserves. Be honest.
- Talk to a mortgage broker (us) to get pre-approved. Costs nothing. Tells you exactly what you qualify for in 24-48 hours.
- Take a homebuyer education course online if your DPA program requires it.
- Find an experienced agent who works with first-time buyers in your target area.
That's the whole process. Our first-time buyer page has the deeper details. Request a pre-approval when you're ready.