Question 1

Do you really need 20% down to buy a home?

Accepted Answer

No, you do not need 20% down to buy a home. FHA loans allow as little as 3.5% down, conventional loans for first-time buyers can go as low as 3% down, and VA and USDA loans require 0% down for eligible buyers. The 20% benchmark exists only to avoid private mortgage insurance (PMI) on a conventional loan, and the median first-time buyer down payment has been roughly 6% to 8% in recent years.

Question 2

What credit score do you need to buy a house?

Accepted Answer

A 620 FICO score is the typical minimum for a conventional mortgage. FHA loans can be approved with scores as low as 580 with 3.5% down, or 500 with 10% down. VA loans have no federal minimum, but most lenders require 580 to 620. Higher scores unlock lower interest rates.

Question 3

How long does it take to buy a home from start to finish?

Accepted Answer

Buying a home takes about 2 to 6 months from start to finish. Pre-approval takes a few days, home shopping can take weeks or months depending on the market, and closing typically takes another 30 to 45 days after going under contract while the lender finalizes underwriting and the title company prepares paperwork.

Question 4

Is it better to buy or keep renting?

Accepted Answer

Buying generally makes sense when you plan to stay in the home at least 5 to 7 years, your income is stable, and the all-in monthly payment fits comfortably in your budget. Renting is smarter when a move is likely soon, the local price-to-rent ratio is very high, or maintenance costs would stretch your finances.

Question 5

What costs should you plan for besides the down payment?

Accepted Answer

Beyond the down payment, plan for closing costs of 2% to 5% of the loan amount, a $300 to $600 home inspection, a $400 to $700 appraisal, the first year of homeowners insurance, property tax escrow, and moving expenses. After moving in, set aside 1% to 3% of the home's value each year for maintenance and repairs.

Question 6

Who pays the real estate agents?

Accepted Answer

The buyer and the buyer's agent sign a written agreement up front that defines how the buyer's agent will be paid. Compensation can be offered by the seller, paid by the buyer directly, or negotiated as part of the offer. Historically, the seller paid both agents from sale proceeds, but that arrangement is no longer automatic.

Question 7

What is an FHA loan and who qualifies?

Accepted Answer

An FHA loan is a government-backed mortgage insured by the Federal Housing Administration, designed for buyers with lower credit scores or smaller down payments. The minimum down payment is 3.5% with a credit score of 580 or higher, or 10% with a score between 500 and 579. FHA loans require a debt-to-income ratio below 43% and the home must be your primary residence. The main tradeoff is mortgage insurance premium (MIP), which is required for the life of the loan if you put less than 10% down.

Question 8

What is the average age of a first-time homebuyer?

Accepted Answer

The median age of a first-time homebuyer in the United States is 40, according to the National Association of Realtors' 2025 Profile of Home Buyers and Sellers. That is a new all-time high and up sharply from 29 in 1981, driven by higher home prices, elevated mortgage rates, student loan debt, and the longer time it takes to save a down payment. Repeat buyers now have a median age of 59, and first-time buyers made up just 21% of all purchases - a record low.

Buying your first home, demystified.

Start here

How much house can I afford?

First-time buyer programs by state

How the mortgage process works

What to look for in a real estate agent

Frequently asked questions