- Enter your annual income.
- Enter your current monthly debt.
- Enter your down payment.
- Enter a state.
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FIRST-TIME HOMEBUYER GUIDE AND RESOURCES
Take action on your dream of home ownership.
Topics in this step
Topics in this step
Home must-haves
Financial consideration
Assistance programs
Step 1 checklist
Dig into articles, tools and resources designed for each step of your home-buying journey.
Please fix the following items to continue:
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Annual income before taxes
Your annual income before taxes, or gross income, may be received as money, goods, property, or services.
Enter your annual income.
Monthly debt
Your monthly debt includes monthly required credit card payments, car payments, student loans, alimony and child support payments, any house payments (rent or mortgage) other than the new mortgage you’re seeking, rental property maintenance, and other personal loans with periodic payments. Don’t include everyday expenses like groceries.
Enter your current monthly debt.
Down payment
This is the cash you pay up front when you buy a home. The larger your down payment, the less you’ll need to borrow and pay back in interest.
Enter your down payment.
State
Choose the state where you’re thinking of buying a home.
Property tax
Property tax is calculated by your local government on the value of the property you own, including the land.
Homeowners insurance
This is a type of property insurance that often covers interior and exterior damages, personal assets, or injuries that occur while on the property. It’s often based on your home’s price.
Homeowners association fees (monthly)
HOA fees are monthly dues that condo owners and homeowners in some single-family neighborhoods pay.
Interest rate
This is the amount of money your lender charges you for using their money. It’s shown as a percentage of your principal loan amount.
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What's included in your estimated monthly payment:
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Affordability breakdown
Affordability breakdown
These ranges are based on what your debt-to-income ratio (or DTI) would be.
Affordable In this range, with a DTI from 0% to 36%, you’d be able to pay your monthly bills and still have money left for food and entertainment.
Stretch In this range, with a DTI from 36.1% to 43%, you’d likely be able to afford your monthly housing payments but it may take away from your other expenses or affect your savings.
Aggressive In this range, with a DTI from 43.1% to 45% or higher, you may be likely to miss payments if any unexpected expense occurs.
Affordable
Recommended
Stretch
Aggressive
Learn more about mortgage affordability calculator
Featured topics
How to save for a down payment
When you’re ready to buy a home, having a higher down payment can save you money in the long run. If you plan to buy in the near future, setting money aside now for a down payment can only help.
How to build credit to buy a home
Credit score is a pretty big deal when it comes to buying a home. While you don’t have to have perfect credit to get a mortgage, the higher your credit score, the more choices and better rates you’ll have.
Featured articles
PREPARING TO BUY
How much house can I afford?
A standard rule for lenders is that your monthly housing payment should not take up more than 28 percent of your income. However, home affordability is about more than just how much you can borrow.
THE MORTGAGE PROCESS
Mortgage pre-approval vs. prequalification – what’s the difference?
Prequalification and pre-approval can boost your confidence and could make house hunting easier – but it’s important to understand the difference between prequalification and pre-approval, and when to do which.
CLOSING ON YOUR HOUSE
How much are closing costs?
Closing is the last step in the home-buying process. Closing happens in a meeting between a combination of the buyer, the buyer’s agent, the seller, the seller’s agent and a closing agent.
View videos designed to give you insight into the first-time homebuyer experience.
First-time home-buying process: A U.S. Bank mortgage experience
Three key steps in the home-buying process
Prequalification helps you see how much you might be able to borrow.
Common FAQs for first-time homebuyers
You could qualify for first-time homebuyer benefits even if you’ve owned a home before. There are several programs and benefits that could include low down payment options, down payment assistance, but your credit score is definitely one factor that lenders consider. You could qualify for a U.S. Bank local or state grants and more.
To qualify for mortgage loans that are best suited for first-time homebuyers, there are general requirements that can include,
- Down payment amount
- Household income limitations
- Credit score
Our mortgage loan officers can work with you to see if you qualify for any first-time homebuyer programs.
Depending on your home-ownership goals, we have a lot of great mortgage loan options for first-time buyers. Just to name a few, conventional loans can be ideal if you've been saving for a while and have a strong credit score. FHA loans can help if you're looking for a lower down payment option. Our mortgage loan officers can also help you determine which mortgage loan would work best for you.
Depending on how much you can afford, your down payment could make a big impact on your monthly mortgage payments. Currently the U.S. Bank average down payment is about 11% for a first-time homebuyer. We offer several products that allow an even lower down payment percentage, though you could avoid certain fees associated with mortgages, and lower your monthly payment, by maximizing your down payment. A 20% down payment typically eliminates the addition of private mortgage insurance, or PMI.
You don’t need perfect credit to qualify for a mortgage loan, but your credit score is definitely one factor that lenders consider. You could qualify for a U.S. Bank mortgage loan with a credit score as low as 620, but monitoring your credit activity will be important as you prepare to buy a home. The higher your score, the better.
Yes. There is not a specific minimum income to qualify for a mortgage and there are several loan options and programs available that can help make buying a home with low income possible.
TAKE THE NEXT STEP
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