Programs, credit thresholds, down-payment assistance, and the 12-month credit timeline that positions first-time buyers for the best possible rate.
What 'first-time buyer' actually means
You qualify as a first-time buyer if you have not owned a primary residence in the last three years. That opens the door to state and federal down-payment assistance programs even if this is not literally your first home.
Many states offer down-payment and closing-cost assistance programs stacked on top of Conventional, FHA, VA, and USDA loans. Check your state's housing finance agency for the latest eligibility rules.
Minimum credit scores by loan type
These are program floors — the score that will get you approved. The score that gets you a good rate is meaningfully higher.
- FHA — 580 to qualify for 3.5% down; 500 with 10% down (rare)
- Conventional — 620 minimum, 740+ for best pricing
- VA — no set minimum, but 620+ is what most lenders will fund
- USDA — 640 typical minimum
- State down-payment assistance programs — typically 640 minimum
The mortgage credit score is not the credit-app score
Mortgage lenders pull FICO 2 (Experian), FICO 5 (Equifax), and FICO 4 (TransUnion), and use the middle of the three. Credit Karma, most credit-card apps, and the Discover free score use different models — they routinely show 30–60 points higher than mortgage scores.
Always assume your true mortgage score is lower than the number your app shows. Get a soft mortgage-model pull from your loan officer 90 days before applying so there are no surprises.
The 12-month timeline that works
T-12 months: pull all three reports, freeze the bureaus you are not using, and dispute every inaccurate item. Do not open or close any accounts.
T-9 months: get utilization on every card under 10%. Ask each card issuer for a credit-limit increase.
T-6 months: if your file is thin (fewer than three tradelines), add one secured card or a credit-builder loan. No other new credit from this point on.
T-3 months: run a soft mortgage-model pull with your loan officer. Address any last derogatories.
T-30 days: pay each card down so the statement that will be pulled reports at 1–3%. Do not open, close, or move any account.
What kills a pre-approval in the last month
Buying a car, financing furniture, opening a store card at the register, closing a credit card, letting a card report over 30%, and any change to employment or bank-deposit patterns. If you would not do it with a loan officer watching, do not do it.