First-time buyers are sold two myths: that you need 20% down (you do not) and that one loan type is "the first-time buyer loan" (there is not). The truth is a comparison, and the winner shifts with your credit score and cash position.
The main paths
- FHA: 3.5% down. Friendliest to thinner credit and higher debt ratios. Trade-off: mortgage insurance usually lasts the life of the loan.
- Conventional 3% down. Best long-run cost for stronger credit, and PMI cancels at 20% equity.
- VA: 0% down. If you served, this is almost always the answer: no down payment, no monthly mortgage insurance.
- 1% down and lender-credit programs. Real when available, with fine print worth reading first.
- Bank statement loans. First-time buyer and self-employed are not mutually exclusive; your business income can buy your first home.
Want the full playbook?
The First-Time Home Buyer Plan walks credit prep to keys, and How to Buy a Home covers the Orange and LA County process end to end.
What actually decides the winner
Credit score first: around 740+, conventional usually wins; in the 600s, FHA's pricing is often kinder. Cash second: the difference between 3% and 3.5% down on a California home is real money, but so is the mortgage insurance structure behind each. Timeline third: staying five-plus years changes which insurance model costs less. Jackie runs the side-by-side on your real numbers the same day you call, free, and with no pressure to pick the option that pays a lender more.
Frequently asked questions
How much do I really need saved to buy my first home?
Plan for the down payment (from 0 to 3.5% on the main first-time programs) plus roughly 2 to 3% for closing costs, less any seller credits negotiated in the deal. Gift funds from family are allowed on all the major programs, and reserves help but do not need to be enormous.
What credit score do I need?
FHA can work from the low 600s and sometimes below with strength elsewhere. Conventional generally wants 620+, with the best pricing above 740. If your score needs work first, see how credit affects your rate and what moves it fastest.
Are there down payment assistance programs in California?
Programs come and go with funding cycles, and availability changes quickly. Ask Jackie what is currently open when you start; pairing assistance with the wrong first mortgage can cost more than it saves, so the combination matters more than the headline.