FHA remains the most accessible path for most first-time buyers — 3.5% down, no income caps, no geographic restrictions. Pair it with SONYMA down-payment assistance for even less out of pocket.
FHA's statutory minimum — the lowest widely-available down payment requirement.
Unlike SONYMA or HomeReady, standard FHA has no income or geographic restrictions.
500-579 FICO still qualifies with 10% down.
Not required for automated approvals — but recommended, and often required on manual underwrites.
The classic first-time buyer — building credit, saving for a down payment, ready to stop renting.
You may still qualify as "first-time" for programs like SONYMA even if you owned a home previously.
FHA's flexible credit standards make it the most common entry point for buyers with a thinner credit file.
These are the FHA (HUD 4000.1) rules I underwrite to. Conventional, VA, USDA, and Non-QM treat some of these situations differently — see below.
| Requirement | Detail |
|---|---|
| Minimum down payment | 3.5% with a 580+ FICO; 10% down with 500-579 FICO |
| Income limits | None — FHA has no income caps, unlike SONYMA or HomeReady |
| Geographic limits | None — FHA is available statewide, no target-area restrictions |
| Homebuyer education | Not required for standard automated approvals; often required for manual underwrites or down-payment assistance programs like SONYMA |
Non-QM investors aren't standardized by Fannie, Freddie, or FHA, so guidelines vary — here's the general shape I see most often.
| Requirement | Typical Non-QM rule |
|---|---|
| Eligibility | First-time buyers are eligible, but face stricter overlays since they lack mortgage history |
| Max LTV | Often capped lower — 80-85% instead of 90% for borrowers with mortgage history |
| Max DTI | Often capped at 43-45%, stricter than for experienced borrowers |
| Documentation types | May not be eligible for certain alt-doc types like 1-year P&L statements |
VA is arguably the best first-time buyer program in existence — $0 down, no ownership-history restriction.
| Requirement | VA rule |
|---|---|
| Down payment | $0 — 100% financing up to entitlement limits |
| First-time restriction | None — VA doesn't care if you've owned a home in the last 3 years, unlike SONYMA |
| Homebuyer education | Not mandated for standard automated approvals; recommended, sometimes required for manual underwrites |
Conventional defines "first-time" the same way SONYMA does, with income-based perks for those who qualify.
| Requirement | Conventional rule |
|---|---|
| Down payment | As little as 3% down |
| First-time definition | Haven't owned a principal residence in the last 3 years |
| Income-based programs | HomeReady / Home Possible offer discounted mortgage insurance and better rates if you meet income limits |
USDA doesn't care if you're a first-time buyer, but it does care if you already own another home.
| Requirement | USDA rule |
|---|---|
| First-time buyer status | Not required — anyone can apply for USDA regardless of ownership history |
| Existing property ownership | Cannot own another manufactured home or improved real estate at closing, unless you meet an exception (job relocation, severe overcrowding) |
SONYMA's 3-year rule can be waived entirely for veterans or Targeted Area purchases.
| Requirement | SONYMA rule |
|---|---|
| First-time definition | No ownership interest in a primary residence (you or your spouse) at any point in the 3 years before applying |
| Waivers | Entirely waived for qualifying military veterans or purchases in a SONYMA-designated Targeted Area |
Jumbo caps first-time buyers at a noticeably tighter DTI than standard Jumbo files.
| Requirement | Jumbo rule |
|---|---|
| DTI cap | 38% for first-time buyers, vs. up to 43% for standard Jumbo files |
| Reserves & education | Higher post-closing reserves often required; certified Homeownership Education may be required before closing |
Land loans require the highest down payment and credit floor of any program covered here.
| Requirement | Land Loan rule |
|---|---|
| Eligibility | First-time buyers are eligible, but must meet the same 660 TransUnion credit floor as any other borrower |
| Down payment | Minimum 35% down (65% max LTV) for purchase-only transactions |
Licensed across New York State — with deep roots in the Capital Region and select NYC neighborhoods.
Don't see your town? Reach out — I lend statewide. Or see every Capital Region town.
Local snapshot + the same program comparison, tailored to where you're buying.