The median home price in the U.S. reached $412,000 per NAR 2025 data, with first-time buyers averaging just 8% down — roughly $33,000 before closing costs. When you add 2-5% in closing costs, the total upfront cash requirement often exceeds $40,000.
This guide walks through every step of the first-time buying process: affordability calculations using the 28/36 debt-to-income rule, credit score requirements by loan type (conventional 620+, FHA 580+, VA no minimum), down payment options across program types, state Housing Finance Agency assistance programs, the pre-approval process, making competitive offers, home inspection non-negotiables, appraisal processes, closing cost breakdowns, and mortgage rate buydown math.
Key data points: FHA loans require just 3.5% down with 580+ credit, VA loans offer 0% down for eligible veterans, and state DPA programs provide $5,000-$25,000 in assistance. Closing costs average $8,000-$20,000 on a median-priced home per Bankrate 2025.
Originally published on WealthWise OS.