First Time Home Buyer Loan Guide 2026

Navigating the path to homeownership in 2026 presents unique opportunities and challenges for first-time home buyers. With evolving lending standards, diverse loan programs, and shifting market dynamics, understanding your options is essential to making informed decisions. The RefiGuide published this exclusive guide that examines the requirements, benefits, and strategies to qualify for a first-time home buyer loan in today’s housing market.

Takeaways on First-Time Homebuyer Mortgages

• You don’t need 20% down. Conventional reaches 3%, FHA 3.5%, and VA and USDA require nothing. The 20% figure only determines whether you pay mortgage insurance.
• No program requires you to be a literal first-time buyer. Most define it as not having owned in three years — which includes prior homeowners who’ve been renting.
• The down payment is rarely the binding constraint. Debt-to-income usually is, which makes paying off a car loan more valuable than saving another $5,000.
• Your credit tier matters more than clearing the minimum. Qualifying and getting good pricing are different thresholds, often a full percentage point apart.
• Shop three lenders within 14 days. Multiple mortgage inquiries in that window count as one credit event.

What is a First Time Home Buyer Loan?

A first-time home buyer loan is not a single, specific type of mortgage, but rather a category of home financing programs designed to make homeownership more accessible for individuals purchasing their first property.

These home loans typically feature lower down payment requirements, more flexible credit standards, and various forms of financial assistance compared to conventional mortgages.

First-time home buyer loans encompass both government-backed programs and conventional mortgage options.

The federal government, through agencies like the Federal Housing Administration (FHA), the U.S. Department of Veterans Affairs (VA), and the U.S. Department of Agriculture (USDA), provides loan guarantees that enable lenders to offer more favorable terms.

Additionally, government-sponsored enterprises (GSEs) like Fannie Mae and Freddie Mac offer conventional loan programs specifically tailored for first-time buyers, such as HomeReady and Home Possible.

The primary objective of these programs is to reduce the financial barriers that prevent capable borrowers from entering the housing market. By requiring lower down payments—often as little as 3% to 3.5%, or even 0% in some cases—and accepting credit scores that might not qualify for standard conventional loans, these programs open doors that might otherwise remain closed.

Who is Considered a First Time Home Buyer?

One of the most surprising aspects of first-time home buyer programs is the broad definition of who qualifies as a “first-time” buyer. According to the U.S. Department of Housing and Urban Development (HUD), which sets the standard definition used by most lenders and assistance programs, a first-time home buyer is defined as:

Primary Definition: An individual who has not owned a principal residence during the three-year period ending on the date of purchase of the property. This three-year lookback period is critical—it means that if you previously owned a home but sold it more than three years ago, you can regain first-time buyer status.

Additional Qualifying Scenarios: Beyond the standard definition, you may also be considered a first-time home buyer if you:

• Are a single parent who has only owned a home jointly with a former spouse
• Are a displaced homemaker who has only owned a home with a spouse
• Have only owned a property that was not in compliance with state, local, or model building codes and cannot be brought into compliance for less than the cost of constructing a permanent structure
• Have only owned a property that was not permanently affixed to a permanent foundation

The inclusive nature of this definition reflects an understanding that life circumstances vary widely. A divorce, relocation, or extended period of renting all provide pathways back to first-time buyer status, along with the benefits that accompany it.

How to Get a First Time Home Buyer Loan in 2026

Securing a first-time home buyer loan in 2026 requires careful preparation, research, and strategic decision-making. The process involves several key steps:

Step 1: Assess Your Financial Readiness

Check your credit score (programs typically require 500-620 minimum), calculate your debt-to-income ratio (preferably below 43%), and save for your down payment and reserves. Obtain credit reports from all three bureaus to identify and correct errors.

Step 2: Research Available Loan Programs

Explore government-backed loans (FHA, VA, USDA), conventional options (HomeReady, Home Possible), and state/local down payment assistance programs to find the best fit for your situation.

Step 3: Get Pre-Approved

Gather two years of tax returns, W-2s, recent pay stubs, bank statements, and employment verification. Pre-approval clarifies your budget and strengthens your negotiating position.

Step 4: Complete Homebuyer Education

Many programs require completion of homebuyer education courses covering budgeting, mortgage management, and home maintenance—valuable preparation for successful homeownership.

Step 5: Shop for Lenders and Rates

Compare interest rates, fees, and service quality across multiple lenders. Consider working with a mortgage broker who can access various programs on your behalf.

First-Time Home Buyer Loan Programs Compared — 2026

Four programs dominate first-time home buying in 2026: FHA loans backed by HUD, VA loans for eligible veterans and service members, USDA loans for qualifying rural and suburban areas, and conventional loans with 3% down through Fannie Mae’s HomeReady or Freddie Mac’s Home Possible programs. The table below compares every dimension that matters for a first-time buyer’s decision — including current March 2026 rates and 2026 loan limits.

Rate ranges per RefiGuide lender data, October 2026. Conventional 30-year averages 7.36% per Bankrate and Mortgage Research Center, September 2026; FHA 6.80%; VA 6.26%. Rates rose sharply in September after the Federal Reserve raised its benchmark a quarter point — its first increase in three years — pushing 10-year Treasury yields past 5%.

FHA limits per HUD, effective January 1, 2026: $541,287 baseline and $1,249,125 in high-cost areas. Conventional conforming limits per the FHFA November 2025 announcement: $832,750 baseline and $1,249,125 high-cost. USDA income limits per USDA Rural Development 2026 guidelines. VA loan limit framework per the Blue Water Navy Vietnam Veterans Act, effective January 1, 2020 — veterans with full entitlement face no loan limit.

Monthly payment estimates are illustrative on a $300,000 balance at stated rates; actual costs vary by lender, credit profile, and property. PMI estimate assumes a 680 credit score at 97% LTV conventional — actual PMI varies substantially by score and LTV, and stacks on top of loan-level price adjustments that also scale with credit.Rates change daily — verify current pricing before relying on any figure here.

What Can First-Time Buyers Afford in 2026? National Median Home Price Context

The national median existing home sale price is approximately $425,000 as of early 2026, according to the National Association of Realtors. That figure is critical context for every program comparison above — here is what it means for each loan type at current March 2026 rates.

2026 FHA Loan Limits — What First-Time Buyers Need to Know

Effective January 1, 2026, HUD raised FHA loan limits by 3.26% across the board to reflect continued home price appreciation. Here are the limits most relevant to first-time buyers:

Key 2026 FHA limit facts for first-time buyers:

• The $541,287 floor covers most first-time buyer purchases in affordable markets across the South, Midwest, and Mountain West — $425,000 median home price is well within this limit with 3.5% down
• Multi-unit limits are proportionally higher — a first-time buyer “house hacking” a duplex in a standard county can FHA-finance up to $693,050, using rental income from one unit to qualify
• In high-cost counties (San Francisco, Los Angeles, NYC metro, Seattle, Denver), the FHA ceiling of $1,249,125 matches the conventional conforming ceiling exactly — giving FHA borrowers the same buying power as conventional in those markets
• FHA limits increased 3.26% from 2025 ($524,225 → $541,287), matching the national home price appreciation rate per FHFA’s Q3 2025 House Price Index
• To find the exact limit for your county, use the HUD Mortgage Limits tool: hud.gov/program_offices/housing/sfh/lender/origination/mortgage_limits

How Do You Qualify for First Time Home Buyer Programs in 2026?

Qualification requirements vary by loan program, but several common criteria apply across most first-time buyer mortgages:

Credit Score Requirements

FHA Loans: Minimum score of 580 for 3.5% down payment; scores between 500-579 may qualify with 10% down

Conventional Loans (HomeReady/Home Possible): Typically require 620 minimum, though some lenders may accept 660

VA Loans: No official minimum, but most lenders require 620 or higher

USDA Loans: Generally require 640 minimum

Non-QM Loans: Typically range from 620 to 700, depending on the lender and program specifics

Income and Employment Verification

Lenders must verify that you have stable, sufficient income to afford mortgage payments. Requirements include:

• Two years of consistent employment history (though exceptions exist for recent graduates or those who changed careers for advancement)
• Documented income through W-2s, tax returns, or alternative documentation for self-employed borrowers
• Income that supports the debt-to-income ratio requirements of your chosen loan program

Down Payment

Down payment requirements vary significantly:

• FHA: 3.5% minimum (500-579 credit score requires 10%)
• Conventional (HomeReady/Home Possible): 3% minimum
• VA: 0% for eligible veterans and active-duty service members
• USDA: 0% for properties in eligible rural areas
• Non-QM: Typically 10% to 30%, depending on the borrower’s profile

Property Requirements

The property must:

• Serve as your primary residence
• Meet minimum property standards established by the loan program
• Be located within approved areas (particularly relevant for USDA loans)
• Pass appraisal and inspection requirements

Overview of First Time Home Buyer Loan Programs

FHA Loans: Accessible Financing for Diverse Borrowers

The Federal Housing Administration has been facilitating homeownership since 1934, and FHA loans remain the most popular choice for first-time buyers in 2026. These FHA first time home loans are not issued by the FHA directly but are insured by the agency, which reduces lender risk and enables more flexible approval standards.

Key Features:

• Low Down Payment: 3.5% down with a credit score of 580 or higher
• Flexible Credit Standards: Accepts credit scores as low as 500 with 10% down
• Gift Funds Allowed: Down payment can come entirely from family gifts
• Assumable Mortgages: FHA loans can be assumed by qualified buyers when you sell
• Loan Limits: Vary by county, ranging from $524,225 in most areas to $1,209,750 in high-cost markets in 2026

Requirements:

• Mortgage Insurance Premium (MIP): Required for the life of the loan if down payment is less than 10%
• Upfront MIP of 1.75% of the loan amount (can be rolled into the loan)
• Annual MIP ranging from 0.45% to 1.05%, depending on loan amount and term
• Debt-to-income ratios up to 50% with compensating factors

FHA first time buyer loans are particularly beneficial for buyers with limited savings, lower credit scores, or higher debt loads who might not qualify for conventional financing.

VA Loans: Honoring Military Service

VA loans represent one of the most generous mortgage programs available, exclusively serving veterans, active-duty service members, and eligible surviving spouses. Backed by the U.S. Department of Veterans Affairs, these first time homebuyer loans require no down payment and feature exceptionally favorable terms.

Key Features:

• Zero Down Payment: 100% financing available
• No Mortgage Insurance: Unlike FHA and conventional loans with less than 20% down, VA loans require no private mortgage insurance (PMI)
• Competitive Interest Rates: Often 0.25% to 0.5% lower than conventional rates
• Flexible Underwriting: More lenient on credit issues and higher debt-to-income ratios
• VA Funding Fee: Ranges from 1.4% to 3.6% of the loan amount but can be financed into the mortgage

Eligibility Requirements:

• Certificate of Eligibility (COE) documenting qualifying service
• Minimum credit score typically 620, though some lenders accept lower
• Sufficient residual income to cover family living expenses
• Property must meet VA Minimum Property Requirements (MPRs)

For eligible military borrowers, VA loans provide an unmatched pathway to homeownership with significant long-term savings due to the absence of mortgage insurance. Ask about first time home buyer loans with zero down.

USDA Loans: Rural and Suburban Homeownership

The U.S. Department of Agriculture Rural Development program offers 100% financing for 1st-time home buyers for properties in eligible rural and suburban areas. Despite the “rural” designation, USDA-eligible areas include many suburban communities on the outskirts of major cities.

Key Features:

• Zero Down Payment: No down payment required for qualified borrowers
• Below-Market Interest Rates: USDA loans typically offer rates 0.25% to 0.5% lower than conventional mortgages
• Flexible Credit Standards: Minimum credit score typically 640
• Income Limits: Household income must not exceed 115% of area median income

Requirements:

• Property must be in a USDA-eligible area (check eligibility at the USDA website)
• Guarantee Fee: 1% upfront (can be financed) plus 0.35% annual fee
• Debt-to-income ratio typically capped at 41%
• U.S. citizenship or permanent residency required

USDA first time loans are ideal for buyers seeking affordable homes in less densely populated areas who meet income restrictions.

Fannie Mae HomeReady: Conventional Financing for Low-to-Moderate Income Buyers

Fannie Mae’s HomeReady program provides conventional mortgage financing with just 3% down for borrowers with limited income or assets. This program competes directly with FHA loans while offering potential advantages in mortgage insurance costs and flexibility.

Key Features:

• 3% Down Payment: Only 1% must come from the borrower’s own funds; the remaining 2% can come from grants or gifts
• Flexible Income Sources: Allows income from non-borrower household members to qualify
• Reduced Mortgage Insurance: PMI rates often lower than FHA insurance
• Homebuyer Education Required: Must complete an online education course
• Income Limits: Vary by area; typically capped at 80% of area median income in most locations

Requirements:

• Minimum credit score typically 620
• Debt-to-income ratio up to 50% with automated underwriting approval
• No first-time buyer requirement in most areas
• PMI required until 20% equity is reached

HomeReady particularly benefits first time buyers in areas with high area median incomes, as the income limits are more generous.

Freddie Mac Home Possible: Similar Benefits, Different Sponsor

Freddie Mac’s Home Possible program mirrors HomeReady in many respects, offering 3% down payment financing for low-to-moderate income borrowers through conventional lending channels.

Key Features:

• 3% Down Payment: Competitive with HomeReady and FHA
• No Income Limits in Some Areas: Underserved markets have no income restrictions
• Homebuyer Education Required: Online courses available
• Reduced Mortgage Insurance: Potentially lower than FHA
• Flexible Income: Boarder or roommate income can qualify

Requirements:

• Minimum credit score typically 620
• Income limits of 80% area median income (except in underserved areas)
• Debt-to-income ratio up to 50% with automated approval
• PMI required until 20% equity

The choice between HomeReady and Home Possible often depends on which lenders you work with, as not all lenders offer both first time home buyer programs.

FHFA First-Time Home Buyer Mortgage Rate Reduction

Last year, the Federal Housing Finance Agency (FHFA) announced rate reductions for 1st-time homebuyers across all loan programs to enhance affordability. This first time homebuyer program decreases supplementary interest rate charges for qualifying first-time buyers, resulting in potential savings of up to 1.75% on their mortgage interest rate.

Non-QM Loans: Alternative Financing for Unconventional Borrowers

Non-Qualified Mortgage (Non-QM) loans serve borrowers who don’t meet strict “ability to repay” standards for qualified mortgages, providing crucial financing for self-employed individuals, real estate investors, and those with complex financial situations.

Common Non-QM Types:

• Bank Statement Loans: Use 12-24 months of deposits for qualification instead of tax returns
• DSCR Loans: Qualify based on property’s rental income rather than personal income
• Asset Depletion Loans: Calculate “income” from liquid assets divided by loan term
• Foreign National Loans: Enable non-U.S. citizens to purchase property without Social Security numbers

Key Considerations:

• Credit scores typically 620-700 minimum
• Down payments generally 10% to 30%
• Higher interest rates (0.5% to 2% above conventional)
• Flexible documentation and income verification
• Often accept DTI ratios above 50%

Non-QM loans are not subprime—they require demonstrated creditworthiness but use alternative verification methods, accommodating diverse modern employment structures.

Dollar Homes

It might sound too good to be true. But there are HUD homes that are made available to buyers for as little as $1. These homes are taken over by FHA after the foreclosure process. There are only a small number of homes available for the most part, but buyers who are interested in buying an affordable home in certain cities in the US should check it out.

Good Neighbor Next Door

This program was once called the Teacher Next Door Program. Today it has been expanded to include firemen, police, EMTs and other critical workers for the public health. The Good Neighbor Next Door is a HUD program that provides the buyer with up to a 50% discount that are located in an urban revitalization area. It is required to live in the home for at least three years. You can find available home listed on the Good Neighbor Next Door website or read our recent article that discusses the pros and cons of the Good Neighbor Next Door Program.

Qualified first time home buyers are entitled to a 50% reduction in the acquisition cost of HUD properties located in specified revitalization zones. If they choose to finance the house with an FHA loan, they are only required to make a minimal down payment of $100. To secure the purchase price reduction, borrowers take on a silent second mortgage, under which they are not obligated to make payments or pay interest as long as they continue to reside in the property for a duration of three years.

What Are the Benefits of Being a First Time Home Buyer?

First-time home buyers enjoy numerous advantages:

Financial Benefits:

• Lower down payment requirements (0% to 3.5%)
• Access to 2,600+ down payment assistance programs averaging $18,000 in benefits
• Reduced mortgage insurance costs on some programs
• Below-market interest rates through state housing agencies
• Tax deductions for mortgage interest and property taxes
• Mortgage Credit Certificates offering up to $2,000 annual tax credits

Educational Support:

• Required homebuyer education courses providing valuable knowledge
• Financial counseling for credit improvement and debt management
• Priority access to assistance programs

Wealth Building: Homeownership builds equity through principal reduction, property appreciation, and forced savings. Research shows buying at 30 versus 40 can generate $150,000 additional equity through compounding appreciation and principal reduction.

What is the Average Age of a First Time Home Buyer?

It depends on who’s counting, and the gap is large enough to matter.

The National Association of Realtors reports the typical first-time buyer reaching 40 years old — up from 38 the prior year and 31 a decade ago. That figure gets cited constantly.

But larger datasets disagree. The National Mortgage Database, drawing on millions of actual mortgage records, puts the median closer to 32 or 33. Cotality data shows it essentially flat at 32.

The discrepancy is methodological. NAR’s figure comes from a mail survey of roughly 6,100 respondents. The others draw on millions of recorded transactions. Survey response bias plausibly skews older — buyers who respond to a mailed questionnaire about a home purchase may not represent everyone who bought.

What’s not disputed is the direction. First-time buyers are older than previous generations, and the reasons compound:

• Home prices outpacing wage growth — the national median sits near $425,000
• Student loan debt, averaging roughly $39,000 per borrower
• Delayed marriage and household formation
• High rental costs preventing down payment accumulation
• The lock-in effect — homeowners holding sub-4% mortgages aren’t selling, which constrains inventory

One factor to add for 2026. The Federal Reserve raised its benchmark in September, its first increase in three years, pushing financing costs higher. Rising rates extend the saving timeline further — not because buyers need a larger down payment, but because a higher payment raises the income required to qualify for the same house.

Which is precisely why down payment assistance matters. These programs shorten the timeline rather than asking buyers to wait it out — and unlike home prices or interest rates, they’re something a buyer can act on now.

Delayed homeownership has significant implications. Buying at age 30 versus 40 can mean $150,000 less equity on a typical starter home due to lost appreciation and principal reduction time.

What is the First Time Home Buyer Tax Credit?

Historical Context

The most significant federal first-time home buyer tax credit operated from 2008-2010 during the financial crisis, providing up to $8,000 ($4,000 married filing separately) equal to 10% of the purchase price. This program expired over a decade ago and is no longer available.

Current Status (2026)

No federal first-time home buyer tax credit currently exists. Several proposals remain under Congressional consideration but have not been enacted:

First-Time Homebuyer Tax Credit Act of 2025: Proposes up to $15,000 refundable credit (10% of purchase price, capped at $15,000), adjusted annually for inflation beginning in 2026. No repayment required if maintained as primary residence.

Bipartisan American Homeownership Opportunity Act: Offers tax credit equal to down payment up to $50,000, with income phase-outs beginning at $150,000 (single), $225,000 (head of household), or $300,000 (married filing jointly). Includes recapture provisions if sold within five years.

Downpayment Toward Equity Act: Proposes $25,000 cash grant for first-generation, first-time buyers through HUD and local agencies. Currently not enacted and unlikely to advance.

State and Local Options

While federal credits remain proposals, many states offer incentives:

Mortgage Credit Certificates (MCCs): Available through state housing agencies, allowing 10% to 50% of mortgage interest paid as direct tax credit (capped at $2,000 annually).

State-Specific Programs: Some states offer their own tax credits. New York’s proposed S.850 would provide credits based on local property taxes, declining from 50% in year one to 10% in year five.

First-time buyers should research state and local programs in their area for potential savings even without federal tax credits.

Do not forget mortgage insurance, as you will need to factor that into your proposed housing expenses and find out if PMI is tax-deductible with your personal circumstances. For most Americans, the 30 year fixed loan is the most popular, and FHA first time home loans allow many millions more Americans to become homeowners. Prospective first-time homebuyers have the option to apply for the best first time buyer mortgages and home buying grants either through online platforms or in physical locations. Mortgage companies are equipped to grant first-time buyer program approvals within a matter of minutes, so do your research and become a homeowner.

Strategic Considerations for First Time Home Buyers in 2026

The 2026 housing market presents challenges with mortgage rates around 6-7% and elevated home prices near $428,700. However, opportunities exist through improving inventory, regional market variation, builder incentives, and increasing negotiation power as the market balances.

Success Strategies:

• Work with experienced professionals specializing in first-time buyer programs
• Consider new construction for builder rate buydowns and incentives
• Explore employer homebuyer assistance programs
• Combine state down payment assistance with federal loan programs
• Focus on long-term wealth building rather than perfect timing
• Plan to remain in the home for at least five years to maximize benefits

Takeaways for First Time Home Buyers in 2026

First-time home buyer loan programs in 2026 offer multiple pathways to homeownership through government-backed loans (FHA, VA, USDA), conventional programs (HomeReady, Home Possible), and Non-QM alternatives. With proper preparation—including credit improvement, debt management, and thorough research—qualified buyers can access competitive financing with low down payments and flexible standards.

• Shop First Time Home Buyer Loans with Competitive Mortgage Rates
• Compare Lenders for First Time Home Buyer Mortgages in All 50 States
• Find Zero Down Home Loans for First Time Buyers

While buyers enter the market at older ages facing higher prices, homeownership’s fundamental benefits remain: equity building, stable housing costs, and long-term wealth creation. Success requires understanding available programs, preparing financially, and making informed decisions aligned with your specific circumstances and goals.

Frequently Asked Questions:

How much mortgage can I afford as a first-time home buyer?

As a first-time home buyer, you can typically afford a mortgage that keeps your monthly housing costs (including principal, interest, taxes, and insurance) below 28-31% of your gross monthly income. Lenders also consider your total debt-to-income (DTI) ratio, which should ideally be under 43%. Using a mortgage calculator and getting pre-approved can help determine your budget. Most first-time home buyers get approved for conventional loans, FHA loans, or VA loans (for eligible veterans). Approval amounts vary based on credit score, income, debt, and down payment. Many first-time buyers qualify for FHA loans with lower credit score requirements and down payments as low as 3.5%. A strong financial profile improves the chances of securing a larger loan.

How much do most first-time home buyers usually put down?

Most first-time home buyers put down between 3% and 10% of the home’s purchase price. Conventional loans often allow as little as 3% down, while FHA loans require at least 3.5%. Some buyers may put down more to lower their monthly payments, while VA and USDA loans offer zero-down options for eligible buyers.

How Much Down Payment for a $300K House First-Time Buyer?

The required down payment depends on the loan type. An FHA loan requires 3.5% down, which is $10,500. A conventional loan may require 3% down ($9,000) or 5% ($15,000), while VA and USDA loans require 0% down for eligible buyers. First-time buyers should also budget for closing costs and moving expenses, which can add an extra 2-5% of the home price.

How Much Should a First-Time Home Buyer Save?

A first-time home buyer should save for a down payment, closing costs, and emergency expenses. If using an FHA loan (3.5% down) for a $300,000 home, you’d need $10,500 for the down payment alone. Closing costs typically range from 2% to 5% of the home price, adding $6,000 to $15,000. Having three to six months of living expenses saved for unexpected costs is also recommended.

How Much Do First-Time Home Buyers Have to Put Down in California?

In California, first-time home buyers can often put down as little as 3% for conventional loans or 3.5% for FHA loans. Some state and local programs offer down payment assistance to reduce upfront costs. VA and USDA loans may require no down payment. However, in California’s competitive market, a larger down payment can make offers more attractive to sellers.

Can I Qualify as a First-Time Home Buyer Again?

Yes, you can qualify again as a first-time home buyer if you have not owned a home in the past three years. Some loan programs, such as FHA and state-specific assistance programs, allow previous homeowners to regain first-time buyer status if they meet certain criteria. If you’ve recently sold a home but haven’t owned one in three years, you may still be eligible for down payment assistance and tax benefits.

How do I Apply for the $25,000 First-Time Home Buyer Grant Application?

As of January 2025, the $25,000 Downpayment Toward Equity Act has not been enacted into law, so applications are not currently being accepted. This proposed legislation aims to provide first-time, first-generation homebuyers with up to $25,000 in financial assistance for down payments and closing costs. Eligibility criteria include being a first-time homebuyer, meeting specific income limits, and purchasing a primary residence.

Does Co-Signing Affect First-Time Home Buyer Status?

Yes, co-signing a mortgage loan can impact your first-time home buyer eligibility. If your name is on another home loan, some programs may not consider you a first-time buyer, even if you don’t live in the home. However, if you haven’t owned a home in three years, some programs might still classify you as a first-time buyer, but lenders may factor the co-signed loan into your debt-to-income ratio (DTI).

References

• Federal Reserve Bank of New York. (2025). Consumer Credit Panel/Equifax [Data set].
• Internal Revenue Service. (n.d.). Tax credits for home buyers (Publication FS-10-06).
• National Association of Realtors. (2025). 2025 Profile of home buyers and sellers. 
• U.S. Congress. (2025). H.R.3475 – Bipartisan American Homeownership Opportunity Act of 2025.
• U.S. Department of Agriculture. (n.d.). Single family housing guaranteed loan program.