Stonebridge Home Loans helps first time buyers find the right loan program, the lowest reasonable down payment, and a clear path from pre-approval to closing day.
First Time Home Buyer Guide
Buying a home for the first time can be exciting and overwhelming. At Stonebridge Home Loans, our team is here to guide you with our experience to make the process as seamless as possible. For over 18 years, we have helped first time homeowners in Pennsylvania understand the process and get the information they need to make the sale.
1,200+
First time buyers funded
21 days
Average time to close
4.9/5
Average client rating
Answer a few quick questions and a Stonebridge loan officer will follow up with your program options.
See What You Qualify For
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What First Time Home Buyers Need to Know
If you’re a first-time home buyer, it’s important to know what you need and what to expect during the home buying process. From financial requirements to documents, it’s you want to be as prepared as possible.
Financial Requirements
When you want to buy a new home, there are several financial requirements to keep in mind:
Credit Score
The higher your credit score, the easier it will be to secure lower interest rates. Generally, a minimum of 620 for conventional loans or 580 for FHA loans is where you want your credit score to land.
Debt-to-Income Ratio
You want to show lenders you can afford the monthly payments. You typically want your debt-to-income ratio to be below 43% to 50%.
Down Payment
A down payment between 3% and 20% of the purchase price is generally recommended. This will vary depending on the type of loan you take out.
Closing Costs
You will need an extra 2% to 5% of the loan amount to cover taxes and lender fees.
Questions or want to talk to a loan officer? It's simple. Just contact us below!
Necessary Documents
If you are seeking pre-approval for a mortgage, you want to have these documents ready:
- W2 and Tax Returns: You want to show income from the past two years
- Bank Statements: Have asset records from the last 2-3 months.
- Pay Stubs: Show recent earnings from the last 30 days.
- Identification: You will also need a valid government-issued photo ID.
Built for buyers without a 20% down payment
Types of Loans for First Time Home Buyers
Most first time buyers don’t put 20% down, and they don’t have to. Here are the programs Stonebridge uses most often to get first-time buyers into a home sooner.
Our team can review each type so that you can seek the one that best suits your budget and financial needs.
FHA Loan
Government-backed
Backed by the Federal Housing Administration, this is often the easiest program to qualify for if your credit or savings are still a work in progress. Mortgage insurance is a flat rate no matter your credit score.
| Min. down payment | 3.5% |
| Min. credit score | 580 |
| Max. DTI | Up to 50% |
| Income limit | None |
Conventional 97
Fannie Mae
A conventional mortgage with just 3% down, designed specifically to help first-time buyers get in the door. Strong-credit borrowers often pay less over time than FHA once PMI is factored in.
| Min. down payment | 3% |
| Min. credit score | 620 |
| Max. DTI | Up to 43–45% |
| Income limit | None |
HomeReady & Home Possible
Fannie Mae / Freddie Mac
Low-down-payment programs for moderate-income buyers, with reduced mortgage insurance costs and flexibility on where your down payment comes from, including gifts.
| Min. down payment | 3% |
| Min. credit score | 620–660 |
| Max. DTI | Up to 45% |
| Income limit | ≤80% of area median |
VA Loan
Service members & veterans
For eligible active-duty service members, veterans, and surviving spouses. No down payment and no monthly mortgage insurance, one of the strongest benefits available to any first-time buyer.
| Min. down payment | 0% |
| Min. credit score | Typically 580–620 |
| Max. DTI | Up to 41% |
| Eligibility | Military service required |
USDA Loan
Eligible rural & suburban areas
Zero-down financing for homes in USDA-eligible areas. More suburbs qualify than most buyers expect. A great fit for buyers with steady income but limited savings.
| Min. down payment | 0% |
| Min. credit score | Typically 640 |
| Max. DTI | Up to 41% |
| Income limit | ≤115% of area median |
Down Payment & Closing Cost Assistance
Many buyers pair one of the programs above with a state or local down payment assistance program, employer homebuying benefit, or gift funds, often reducing out-of-pocket cash to well under 3%. Ask your Stonebridge loan officer which programs you’re eligible for.
From "just looking" to move-in day
How It Works
Get matched
Tell us about your situation. We match you to the programs you actually qualify for — no guesswork.
Get pre-approved
We verify your income and credit and issue a pre-approval letter so you can shop with confidence.
Find your home
Work with your agent to make an offer. We stay in the loop so financing never holds up your deal.
Close & move in
We coordinate underwriting, appraisal, and closing — and walk you through every document you sign.
What First Time Home Buyers Ask Us Most
Do I actually need 20% down to buy a house?
No. Most first time buyers put down far less than 20%. Several programs above allow 3% down, and VA and USDA loans allow 0% for eligible buyers. 20% simply avoids mortgage insurance; it isn’t a requirement to get a loan.
What credit score do I need?
It depends on the program. FHA loans allow scores as low as 580 (or 500 with 10% down). Conventional programs typically start around 620. We’ll tell you exactly where you stand and what to improve if needed.
What counts as a "first time home buyer"?
For most programs, you qualify as a first time buyer if you haven’t owned a home in the last three years, even if you’ve owned a home before that. Many buyers are surprised they still qualify.
How long does pre-approval take?
Most Stonebridge clients receive a pre-approval letter within 24–48 hours of submitting income and credit documentation.
Will checking my options hurt my credit?
No. Submitting the form above does not run a credit check. We’ll only pull credit later, with your permission, once you’re ready to move forward.
Why Choose Stonebridge Home Loans
We are the top choice for first time home buyers because we offer advantages that other companies don’t.
Personal Touch: First time home buyers in the Bucks County and Montgomery County, Pennsylvania choose Stonebridge Home Loans because we provide a personal touch. We understand the neighborhoods you want to call home and the local markets. This gives us an advantage over companies trying to help you with home loans from hundreds of miles away.
Competitive Rates: We understand how important it is for first time home buyers to find solid rates. We work with more than 40 wholesale lenders to find the best fit. Our mission is to find competitive pricing and terms made for you.
Quick Closings: When you work with Stonebridge Home Loans, our streamlined process allows us to close home loans quickly. This means you can get the keys to your new home faster and start making it your own.
At Stonebridge Home Loans, we surpass our clients' expectations and provide lending solutions tailored to their individual needs.
See Why We've Been Trusted for Over 18 Years
Are You a First Time Home Buyer? Contact Us Today
No cost, no obligation, and no hard credit check to get started.
Just a clear answer on what you qualify for.
If you’re a first time home buyer, Stonebridge Home Loans can help you secure a loan. Our team will share their experience and guide you through the process. Call us today at 215-357-7934 or reach out to us online for more information.
