Bain & Stoner Home Team
Pasco, Pinellas, Hillsborough, and Hernando County
Real Estate & Mortgage Experts
First - Time Home Buyer Guide
WHO QUALIFIES AS A FIRST TIME HOME BUYER?
As you would expect, if you’re purchasing your first home you'll automatically qualify as a first time home buyer. In addition, if you have not had ownership in a property within that past 3 years, you will also qualify as a first time home buyer and be entitled to the same benefits.
Do I need a 20% Down Payment as a First Time Home Buyer?
Many first-time home buyers in the Tampa Bay area are surprised to learn they may qualify for homeownership with a relatively small down payment. Although there are advantages to putting 20% down, the average down payment for first time home buyers is much less. Depending on the loan program you qualify for, they can range between 3 - 3.5%. If you’re an eligible veteran, no down payment is required!
Need help with your down payment?
Closing Costs in Tampa Bay Florida
Closings costs vary and are dependent on the specific property (purchase price, property taxes, insurance, etc.), aspects of your loan (appraisal fee, pre-paid interest, origination fee, etc.), Florida state fees, and even the time of month you close. In general, these costs are typically 3 - 3.5% of the purchase price.
Although these fees are your responsibility as the buyer, we can typically negotiate that the sellers help contribute towards these costs. We will walk you through these options and different scenarios to put together a plan that works best for you and your budget.
Credit Score Considerations for First-Time Buyers
The minimum credit score is typically 580. Mortgage lenders review several financial factors when evaluating first-time home buyers, including income, debt levels, and credit history. Your credit score can influence which loan programs you qualify for and the interest rate offered. Speaking with a mortgage professional early can help you understand where you stand and what steps may help strengthen your application.
Loan Programs Available for First-Time Home Buyers
First-time home buyers have access to several different mortgage programs depending on your financial situation. Some of the most common options include FHA loans, conventional loans, and VA loans for eligible veterans. Each program has different credit, down payment, and qualification requirements. Working with a mortgage professional can help determine which loan option is the best fit.
​Preparing Financially to Buy Your First Home
Before purchasing a home, it’s helpful to review your monthly budget and understand how homeownership will affect your finances. In addition to the mortgage payment, buyers should plan for property taxes, homeowners insurance, and routine home maintenance. Taking time to evaluate your budget can help ensure a comfortable and sustainable homeownership experience. Visit our Prepare Financing for more details.
Why First-Time Buyers Benefit from Working With a Real Estate Agent
Buying your first home can feel overwhelming, especially when navigating contracts, inspections, and negotiations. A real estate professional helps guide buyers through the process, identifies suitable properties, and helps negotiate the best possible terms. Having experienced guidance can make the process smoother and help avoid common first-time buyer mistakes. Visit our Home Buying Process for more details and advantages of working with an experienced local agent.
Our Advice
TAKE IT SLOW AND ASK QUESTIONS.
We understand this is an exciting time, and maybe you’re in a position to get things moving immediately, and we can assist with that. If this is you, we'll get you fully pre-approved and out shopping for your new home in just a few days!
On the other hand, you may just be in the beginning stages. Maybe you need to build your credit? Maybe you're working on getting a promotion at work? Maybe you need to save some money? The truth is that sometimes planning to purchase a home can take months or even years.
The first and most important step is to speak with a mortgage expert to get a full understanding of where you stand financially. Once you’re confident that you have a solid financing plan in place you can begin the fun part –– shopping for your new home!
Tampa Bay Real Estate and Mortgage FAQs
Who qualifies as a first-time home buyer in Florida?
A first-time home buyer is generally someone purchasing their first home. However, many mortgage programs also consider buyers who have not owned a home in the past three years to be first-time buyers. This means that even if you owned a home in the past, you may still qualify for certain programs designed to help new buyers purchase a home.
Do first-time home buyers need a 20% down payment?
No. Many first-time buyers assume they must save a 20% down payment, but that is not usually required. Depending on the loan program, buyers may qualify with down payments as low as 3–3.5%, and some assistance programs may help reduce upfront costs even further.
How much are closing costs for first-time home buyers?
Closing costs typically range from 3–3.5% of the purchase price, although the exact amount depends on factors such as property taxes, homeowners insurance, appraisal fees, and lender costs. Buyers sometimes negotiate with sellers to contribute toward some of these costs.
What credit score do first-time home buyers need?
Credit score requirements vary depending on the loan program and other financial factors. Conventional loans generally require stronger credit profiles, while some programs may allow lower credit scores depending on income, debt levels, and down payment. Speaking with a mortgage professional can help determine which loan options may be available.
Are there special programs for first-time home buyers in Florida?
Yes. Several programs are designed to help first-time buyers purchase a home, including loans with lower down payments and assistance programs that help reduce upfront costs. These programs can make homeownership more accessible for buyers who may not have large savings.
How much money should a first-time home buyer save before purchasing?
First-time buyers typically need funds for a down payment, closing costs, and some financial reserves after closing. The exact amount depends on the loan program and purchase price. Reviewing your finances with a mortgage professional can help determine a comfortable budget and home price range.
What is the first step for a first-time home buyer?
The first step is typically reviewing your finances and speaking with a mortgage professional to understand your loan options and estimated price range. Once you understand your financing options, you can begin working with a real estate agent to search for homes and start the buying process.