Best Mortgage Lenders for First-Time Home Buyers in 2025
Ready to buy your first home? Get clear steps and expert advice to make your purchase smooth and stress-free.
Purchasing your first home is an enormous accomplishment, and finding the best lender can help make all the difference. Lenders for first time home buyers have special loan programs that assist new buyers with features like low down payments and relaxed credit requirements. Lots of first time buyers opt for an FHA mortgage loan because it has a lower range of down payment requirements and provides insurable FHA loan mortgage insurance. This guide details the best mortgage lenders for 2025 to help first-time home buyers with their home's purchase, as these lenders offer supportive financing options like first time home buyer loan programs and first-time mortgage loans. 
First Time Home Buyer Lenders
Lenders for first-time home buyers can include banks, credit unions, and mortgage companies that have accessible and supportive loan programs for individuals looking to buy their first home. First-time home buyer lenders are unique in that they can often offer twenty percent or lower minimum down payments, flexible credit criteria, educational information for new buyers, and guidance tools for applying for a mortgage for the first time.
Step-by-Step Guide: How to Get Your First Home Loan
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Assess Your Financial Situation
Before contacting a lender, check your income, debts, credit score, and how much you’ve saved for a down payment. Most lenders recommend a credit score of 620+ for conventional loans or 580+ for FHA loans. -
Establish a Budget
Use online calculators to estimate your monthly payment, including principal, interest, property taxes, insurance, and FHA loan mortgage insurance if required. This helps you set realistic home price expectations. -
Gather Documentation
Prepare your proof of income, recent tax returns, bank statements, ID, and asset records. Lenders will verify your employment history and conduct a full review of your financial health. -
Get Pre-Approved
Pre-approval boosts your credibility with sellers and simplifies the rest of the purchase process. A lender checks your finances and issues a preliminary approval letter stating your borrowing limit. -
Compare Mortgage Offers
Request loan estimates from multiple first time home buyer lenders. Focus on APR, interest rate, closing costs, and fees. Examine FHA, conventional, VA, and USDA loans to see what fits your situation. -
Apply and Close
Choose your lender and submit a full mortgage application. Follow up through underwriting, final approval, and closing. With guidance from lenders like Go Mortgage, Chase, and Rocket, closing is streamlined and supports new buyers at every step.
| Lender | Min. Credit Score | Min. Down Payment | Loan Types Offered | EEAT Highlights | National Coverage | Mortgage Insurance Details | Website/Online Access |
|---|---|---|---|---|---|---|---|
| Go Mortgage | 620 (Conventional) 580 (FHA) | 3% (Conventional) 3.5% (FHA) | Conventional, FHA, VA | Accredited professionals, transparent fees, personalized service | Nationwide | PMI on low down payments. FHA Mortgage Insurance Premium (MIP) for FHA loans | Yes |
| Chase | 620 (Conventional) 640 (FHA) | 3% (Conventional) 3.5% (FHA) | Conventional, Jumbo, FHA, VA | Large bank, strong customer support, digital tools | Nationwide | PMI, FHA loan mortgage insurance required for FHA loans | Yes |
| Rocket Mortgage | 620 (Conventional) 660 (Home Possible) | 3% (Conventional) | Conventional, FHA | Fast approvals, digital-first experience, dedicated first-time buyer programs | Nationwide | PMI/MIP applies on low down payments and FHA loans | Yes |
| Veterans United | 620 | None (VA), 3% (Conventional) | VA, Conventional, FHA, USDA | Leader in VA loans, educational tools | Nationwide | VA loans require no PMI, conventional have standard PMI unless 20% down | Yes |
| Wells Fargo | 620 (Conventional) 640 (FHA) | 3% (Conventional) 3.5% (FHA) | Conventional, FHA, VA, USDA | Known for down payment grants, education, varied products | Nationwide | PMI or FHA mortgage insurance on low-down-payment loans | Yes |
| Better.com | 580 (FHA) 620 (Conventional) | 3% (Conventional) 3.5% (FHA) | Conventional, FHA, VA | Direct online process, competitive rates, clarity | Nationwide | PMI required for conventional under 20%, MIP for FHA | Yes |
| Guild Mortgage | 620 | 1%+ Assistance Programs | FHA, VA, USDA, Conventional | Specialized in FHA, down payment grants, wide options | All except NY/NJ | FHA mortgage insurance, VA no PMI, conventional as applicable | Yes |
Best Features to Look for in First Time Home Buyer Lenders
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Flexible credit score requirements compared to traditional loans (580+ for FHA, 620+ for conventional).
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Digital access and fast online applications, as with Go Mortgage and Rocket Mortgage.
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Support for FHA loan mortgage insurance, helping buyers with low down payments manage costs.
Conclusion
Selecting a suitable mortgage lender is a vital part of leading you toward your path of home ownership. Many lenders now offer first time home buyer programs that have low down payment options, flexible credit criteria, and support during the loan process. You can choose from an FHA mortgage loan, a conventional first time home buyer loan, or any other government-backed loan. The most important thing is finding a lender that works with your finances and can clearly guide you along the way. Comparing loan choices, understanding mortgage insurance, and looking into down payment assistance gives you the opportunity to find the financing that's right for your budget and goals. The first step to achieving your dreams is seeking pre-approval from trusted first time home buyer lenders, like Go Mortgage, so you can feel confident proceeding to obtaining your first home.
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