Find out what you
can actually afford

First-time homebuyer programs exist at the federal, state, and local level. Many offer down payment assistance (DPA) grants, forgivable second mortgages, or reduced interest rates for buyers who haven't owned a home in the past three years.

Common programs include FHA loans (3.5% down with a 580+ credit score), USDA zero-down loans for rural and suburban areas, VA loans for eligible service members, and conventional loans with as little as 3% down through Fannie Mae's HomeReady or Freddie Mac's Home Possible programs.

Eligibility depends on your income, location, credit score, and purchase price. Many first-time buyer programs have income limits that vary by county. A licensed loan officer can identify which programs you qualify for based on your specific scenario.

Your home affordability depends on several factors: gross monthly income, existing monthly debts, credit score, down payment amount, current interest rates, and property taxes and insurance in your target area.

Most lenders use the 28/36 rule as a starting point: your housing payment (principal, interest, taxes, insurance) shouldn't exceed 28% of gross monthly income, and total debt payments shouldn't exceed 36%. However, many loan programs allow higher ratios with compensating factors.

Online calculators provide rough estimates but can't account for lender-specific overlays, loan-level pricing adjustments, or the 2,000+ assistance programs available nationwide. A personalized analysis considers all of these variables.

FHA loans require a minimum 580 credit score for 3.5% down or 500-579 with 10% down. FHA mortgage insurance (MIP) is required for the life of the loan unless you put 10%+ down. FHA loan limits vary by county.

VA loans offer zero down payment, no private mortgage insurance, and competitive rates for eligible active-duty military, veterans, and surviving spouses. A Certificate of Eligibility (COE) is required.

USDA loans provide 100% financing in eligible rural and suburban areas. Income limits apply (typically 115% of area median income). No down payment or mortgage insurance premiums, though a guarantee fee applies.

Refinancing replaces your current mortgage with a new one. Common goals include lowering your interest rate, reducing your monthly payment, switching from an adjustable to fixed rate, shortening your loan term, or accessing equity through a cash-out refinance.

The break-even point is critical: divide your closing costs by monthly savings to determine how many months until the refinance pays for itself. If you plan to stay in your home beyond the break-even point, refinancing likely makes sense.

Current homeowners should also evaluate whether they can drop private mortgage insurance (PMI). If your home has appreciated and you now have 20%+ equity, a refinance or reappraisal could eliminate PMI and reduce your total monthly payment.