First-time homebuyer planning that starts with the full cost

Start with a comfortable payment

Work backward from a payment that leaves room for repairs, savings and life, not the largest loan an underwriting model might permit. Include estimated post-purchase property taxes, insurance, mortgage insurance and association dues.

Compare the full menu

Conventional, FHA, VA, USDA and state assistance programs solve different problems. A smaller down payment can protect reserves, while a larger down payment may reduce payment or mortgage insurance. Compare cash-to-close and long-term cost together.

What counts as a first-time buyer?

Many programs use a definition based on not owning a principal residence during a prior period, rather than never owning any property. The exact rule varies by program and must be verified.

Michigan property taxes

The seller’s current bill may not represent yours. After ownership transfers, taxable value can uncap and later reset based on state rules. Use an estimate based on local millage and a reasonable future taxable value.

Avoid these early mistakes

Moving money without a paper trail, opening new credit, changing jobs without discussion, shopping only by rate, and waiving protections before the loan and property have been reviewed.

Build the plan before touring seriously

A durable first-home budget protects the buyer after closing, not just on closing day. Compare payment and cash across several structures before choosing a program.

• Comfortable total housing payment, not only maximum approval
• Down payment, closing funds, gifts and emergency reserves
• Estimated property taxes after transfer and homeowners insurance
• Likely repairs, moving costs and association obligations
• Program benefits, repayment terms and future flexibility

Frequently asked questions