Purchase Loan Products
Buying Your First Home in Georgia
There isn't one first time home buyer loan. There are several, and the right one depends on your credit, your income, your savings, and where you're buying. Conventional, FHA, VA, and USDA financing all serve first time buyers in Georgia, and buyers whose income doesn't fit a W-2 have real paths too. This page explains how they differ so you can tell which conversation is actually yours.
Based in Atlanta. Serving first time buyers across Georgia.
.webp)
Rate Quote
Get a Free First Home Rate Quote
See where rates stand for a purchase like yours before you start touring homes.
A quote is a ballpark, not an approval, a rate lock, or a commitment to lend. Pricing varies by borrower, property, program, and transaction, and moves with the market.
- What to expect: a few questions about the home, your down payment, and your timeline.
- What you'll see: current pricing for the purchase programs that fit your scenario.
- What comes next: a preapproval conversation when you're ready, not a sales call.
- What we won't do: push one program when another fits your numbers better.
Your Scenario, Priced Live
Tell us what you're trying to buy and we'll price your actual situation, not a sample rate typed onto a web page.
Get My Free Rate Quote- No impact to your credit score
- No hidden cost
- No commitment
Who It May Fit
Buyers Who Often Start Here
Find the sentence that sounds most like your situation. Most first time buyers end up comparing two of these side by side.
You have decent credit and don't want a huge down payment
Eligible first time buyers may qualify for conventional financing with as little as 3% down. If your credit is in reasonable shape, run this comparison first.
Your credit is still recovering
FHA financing was built to widen the doorway, with more flexibility on credit and a down payment as low as 3.5% for eligible borrowers. Program requirements apply.
You're a Veteran, currently serving, or a surviving spouse
VA financing may be the strongest option available to eligible buyers, and buying your first home doesn't change that.
You're buying outside the city and want to keep your cash
USDA financing may allow eligible buyers in eligible areas to purchase with no down payment. More of Georgia qualifies than most people expect.
The home you want costs more than standard programs cover
When a loan amount sits above the conforming limit, that's a jumbo loan. Being a first time buyer doesn't disqualify you, though the review runs deeper.
You need help with the down payment
UHome offers two assistance options on FHA financing, 3.5Home and 5Home, for eligible buyers with a credit score of 640 or higher. Eligible gift funds may be another route.
You're self employed and your tax returns don't tell the whole story
First time buyer and self employed are not competing categories. What changes is how your income gets documented.
You're still figuring it out
Start with a conversation instead of a form, and leave knowing which two programs are worth comparing.
Recognizing yourself above doesn't mean you qualify. Eligibility depends on credit, income, assets, the property, program availability, and full underwriting of your scenario.
An Honest Look
When Buying Your First Home May Not Be the Right Move Yet
Renting a while longer is sometimes the better financial decision, and a mortgage company that won't say that out loud isn't worth trusting with the biggest purchase of your life.
None of these means never. Most mean not this quarter.
- Recent late payments or a collection that a few months of clean history would meaningfully improve.
- You'd spend every dollar you have to close, leaving nothing for a water heater, a roof repair, or a job gap.
- Your income is new, seasonal, or unstable in a way documentation can't yet support.
- Your existing debt payments already crowd the monthly room a mortgage would need.
- There's a realistic chance you'll move within a year or two.
- The only way the payment works is a down payment assistance program you haven't been approved for yet.
- You're stretching to the top of your approval amount because that's what it takes to get the house you want.
That last one deserves emphasis. The largest loan you can get approved for and the largest loan you should take are different numbers, and only one shows up on a preapproval letter.
Where to look instead
If this isn't your moment, knowing exactly what would change the answer beats guessing for another year.
- The Second Chance, if a past credit event is the thing standing between you and a mortgage.
- Self employed loan options, when your tax returns understate what your business actually produces.
- Our affordability calculator, to see how a different price point changes the picture.
- VA loans, if you're eligible and assumed the down payment was the obstacle.
- Rent versus buy, if you want to run the comparison on your own numbers before deciding anything.
The Full Picture
Potential Benefits, Weighed Against Real Considerations
First time buyer financing lowers the entry barrier through smaller down payments and more flexible credit review. What you trade is mortgage insurance on most low down payment loans and less margin for error in your budget. Both columns are true at once.
Potential benefits
- Low down payment options exist across several programs. Twenty percent is a strategy, not an entry fee.
- Eligible gift funds from family may be allowed toward the down payment or closing costs on many programs.
- Credit flexibility is real. FHA in particular was designed to review the full story rather than a single number.
- Sellers can sometimes contribute toward closing costs within program limits, though that's negotiated.
- Down payment assistance may be available. UHome offers 3.5Home and 5Home on FHA financing for eligible buyers.
- With a fixed rate mortgage your payment stops moving the way rent does, taxes and insurance aside.
- You start building equity, which is the practical difference between paying a mortgage and paying a landlord.
Important considerations
- Credit. Your history and score both matter, and the story they tell matters as much as the number.
- Ability to repay. Your income has to comfortably support the payment alongside existing obligations, not barely clear it.
- Required funds. Down payment, closing costs, prepaid items, and any reserves your program wants to see after closing.
- Verification. Income, assets, and identity all get documented. A real approval is a documented one.
- Most low down payment loans carry mortgage insurance, and how it's structured and how long it lasts differs by program.
- Owning means maintenance, repairs, property taxes, and insurance that a landlord used to absorb.
- Loan limits, property condition standards, and occupancy requirements apply and vary by program.
This section is educational. It isn't a statement that buying beats renting for any household, or a determination of what you qualify for.
Compare Your Options
How First Time Buyer Loan Options Compare
Four programs, four different reasons a first time buyer picks one. Most buyers seriously compare two. Rates aren't shown because they move daily and vary by borrower.
| Decision point | Conventional | FHA | VA | USDA |
|---|---|---|---|---|
| Best suited for | Reasonably strong credit, low down payment, no long term mortgage insurance. | Credit that's recovering, or a file that needs more flexibility. | Eligible Veterans, service members, and qualifying surviving spouses. | A USDA eligible area, with household income inside the limit. |
| Down payment | As little as 3% for eligible first time buyers. | As little as 3.5% at 580 or higher, 10% for 500 to 579. UHome's 3.5Home and 5Home may cover it at 640 or higher. | None required for eligible borrowers when price doesn't exceed appraised value. | None required for eligible borrowers. |
| Credit considerations | Many programs look for scores starting around 620, though automated underwriting evaluates the full file. | More flexible. Guidelines allow the wider story into the review. | No single published minimum. Lenders and program guidelines set it. | No single published minimum. Lenders and program guidelines set it. |
| First time buyer required? | Some 97% programs require it, others don't. Income limits apply to a few. | No. | No. The benefit is earned and reusable. | No. |
| Mortgage insurance | PMI under 20% down, potentially removable later under program rules. | Upfront plus annual premium. Duration depends on your loan terms. | None monthly. A funding fee applies, with exemptions for certain disabled Veterans. | Upfront and annual guarantee fees. |
| Property considerations | Standard appraisal, broad eligibility. | Appraisal includes minimum property standards. | Appraisal includes minimum property requirements. | Must sit in a USDA eligible area, confirmed by address. |
| Occupancy | Primary residence for the low down payment programs. | Primary residence only. | You must intend to live in the home. | Primary residence only. |
| Primary advantage | Mortgage insurance that may come off, changing the long run picture. | The widest doorway. It approves buyers others turn away. | No down payment and no monthly mortgage insurance. | No down payment without needing military service. |
| Potential tradeoff | Credit carries more weight, so not every buyer qualifies at 3% down. | May stay for the life of the loan depending on your terms. | Limited to those who earned it, and a COE is required. | Address and income limits rule out many buyers, including most intown. |
| When another option may fit better | When FHA reviews your recovering credit more favorably. | When your credit is strong enough that conventional wins the monthly picture. | Rarely, though comparing against conventional is worth doing if you have savings. | When you're in a city, outside the eligible map, or over the income limit. |
Best suited for
Conventional: Reasonably strong credit, low down payment, no long term mortgage insurance.
FHA: Buyers whose credit is recovering or who need more flexibility.
VA: Eligible Veterans, service members, and qualifying surviving spouses.
USDA: Buyers in a USDA eligible area whose household income fits the limit.
Down payment
Conventional: As little as 3% for eligible first time buyers.
FHA: As little as 3.5% at 580 or higher. 10% for scores 500 to 579. UHome's 3.5Home and 5Home assistance may cover it at 640 or higher.
VA: None required for eligible borrowers when the price doesn't exceed the appraised value.
USDA: None required for eligible borrowers.
Credit considerations
Conventional: Many programs look for scores starting around 620.
FHA: More flexible, with the wider story part of the review.
VA: No single published minimum.
USDA: No single published minimum.
First time buyer required?
Conventional: Some 97% programs require it, others don't. Income limits apply to a few.
FHA: No.
VA: No. The benefit is reusable.
USDA: No.
Mortgage insurance
Conventional: PMI under 20% down, potentially removable later.
FHA: Upfront plus annual premium, duration set by your loan terms.
VA: None monthly. A funding fee applies, with exemptions for certain disabled Veterans.
USDA: Upfront and annual guarantee fees.
Property considerations
Conventional: Standard appraisal, broad eligibility.
FHA: Minimum property standards apply.
VA: Minimum property requirements apply.
USDA: Address must sit in an eligible area.
Occupancy
Conventional: Primary residence for the low down payment programs.
FHA: Primary residence only.
VA: You must intend to live in the home.
USDA: Primary residence only.
Primary advantage
Conventional: Mortgage insurance that may come off later.
FHA: The widest doorway.
VA: No down payment and no monthly mortgage insurance.
USDA: No down payment without needing military service.
Potential tradeoff
Conventional: Credit carries more weight, so not every buyer qualifies at 3% down.
FHA: Mortgage insurance may stay for the life of the loan.
VA: Eligibility is limited, and a COE is required.
USDA: Address and income limits rule out many buyers.
When another option may fit better
Conventional: When FHA reviews your recovering credit more favorably.
FHA: When your credit is strong enough that conventional wins the monthly picture.
VA: Rarely, though comparing against conventional is still worth doing.
USDA: When you're buying in the city or your income exceeds the limit.
Two paths sit outside this table. A loan above the conforming limit is a jumbo loan, and first time buyers use them regularly. If your tax returns understate what your business earns, a verified alternative documentation path may tell your story better. See how we work with self employed buyers.
Your Path
How the First Home Loan Process Works
You don't need to memorize the mortgage process. Preapproval is the step that changes your position most, because it turns your budget from a hope into a number sellers take seriously.
Start your plan
Share your situation in a few minutes, online or by phone. No paperwork pile on day one.
Get preapproved
We review income, credit, and funds, then confirm which programs may fit and what your realistic price range is.
Shop with confidence
You search with a clear number and a team behind you. Most Georgia listing agents expect a preapproval letter with an offer.
Go under contract
Your offer is accepted, earnest money goes into escrow, and the contract dates set the pace.
Underwriting and appraisal
Underwriting reviews your file while the appraisal confirms the home's value. Answering requests quickly is what you control.
Close and Get U Home
Review your Closing Disclosure, sign with a closing attorney, and the keys are yours.
Timelines vary by transaction, program, property, and how quickly documentation comes back. Nothing here guarantees approval, a closing date, or any particular loan terms.
Be Prepared
Documents You May Need
Not every buyer needs every item. Your loan officer will tell you which apply, and you'll get a clear checklist up front rather than a surprise request three days before closing.
Income
- Recent pay stubs covering the period your lender requests
- W-2 forms for the most recent years your program requires
- Federal tax returns if you're self employed or earn commission
- Year to date profit and loss if you own a business
- Documentation for retirement, Social Security, pension, or disability income
Assets and funds to close
- Recent statements for checking, savings, and investment accounts
- Retirement account statements if funds are being used or counted as reserves
- A gift letter and documentation for any gift funds
- Proof of earnest money and where it came from
Identity and credit
- Government issued photo identification
- Written explanation for credit items your underwriter asks about
- Bankruptcy, foreclosure, or short sale documentation if applicable
Property and transaction
- Fully executed purchase contract and any amendments
- Homeowners insurance quote or binder
- Contact information for your closing attorney and real estate agent
- HOA or condo documentation when the property has an association
If you rent today
- Your current lease
- Landlord contact information for rental verification
Program specific items
- Certificate of Eligibility and DD-214 for VA financing
- Homeownership education certificate when your program requires it
- Documentation required by any down payment assistance you're using
- Anything your underwriter requests after reviewing your file
Documentation requirements come from the loan program, lending standards, and the underwriting of your file. This is a preparation guide, not a final list of conditions.
How much money you'll actually need
Cash to close is more than the down payment, and the mix differs for every purchase. We map your full cash picture early rather than at the closing table.
Down payment
The share of the price you bring, which varies by program and by what you qualify for.
Closing costs
Lender, title, and transaction charges. Sellers can sometimes contribute within program limits, though that's negotiated.
Prepaid items
Property taxes, homeowners insurance, and interest collected at closing to set up your escrow account.
Reserves, sometimes
Certain programs want to see funds remaining after closing. Not every transaction requires them.
UHome down payment assistance: 3.5Home and 5Home
For eligible buyers using FHA financing with a credit score of 640 or higher, UHome offers two assistance options. Both are calculated as a percentage of the purchase price, and each comes in a repayable version and a forgivable version.
3.5% of the purchase price toward your down payment, which is FHA's minimum required investment. You would still bring closing costs and prepaid items to the table.
5% of the purchase price, split as 3.5% toward your down payment and 1.5% toward closing costs. The larger option when cash to close is the obstacle, not the down payment alone.
What that looks like in dollars
Three example purchase prices, so you can see the size of each option.
3.5Home: $8,750 toward your down payment.
5Home: $12,500 total, as $8,750 toward the down payment plus $3,750 toward closing costs.
3.5Home: $12,250 toward your down payment.
5Home: $17,500 total, as $12,250 toward the down payment plus $5,250 toward closing costs.
3.5Home: $15,750 toward your down payment.
5Home: $22,500 total, as $15,750 toward the down payment plus $6,750 toward closing costs.
These are illustrations, not offers, and not savings. Assistance reduces what you bring to closing, but the repayable version is a second lien you pay back, so money that arrives at closing is not money you keep.
Note the credit requirement carefully. FHA allows a 3.5% down payment at a 580 score, but these options set a higher bar at 640. Qualifying for FHA does not automatically mean qualifying for assistance. We walk through which structure actually serves you before you choose.
Other help that may apply
Assistance isn't the only way to close a cash gap. Eligible gift funds from family are allowed on many programs and are often the simpler answer. Sellers can sometimes contribute toward closing costs within program limits, though that's negotiated. Other programs exist and change periodically, so we check what may apply to your situation.
Real World Context
Three Common First Time Buyer Scenarios
Three Georgia buyers, three answers. The deciding factor is never which page they landed on first.
The renter comparing FHA and conventional in DeKalb County
The situation
Tasha rents near Decatur, has a score in the low 640s after paying down two cards, and has saved a modest down payment plus a small cushion.
Why these programs may be considered
Her score puts conventional at 3% down on the table, and FHA at 3.5% down is comfortably in reach. Both are live options.
What still needs review
How mortgage insurance is structured on each, her full monthly payment both ways, and whether her remaining savings survive either.
When another program could fit better
If a few months of clean payment history moved her score, waiting could change which column wins. Worth knowing before she writes an offer.
The Army couple buying their first home in Henry County
The situation
Marcus separated from the Army last year and he and his wife rent in McDonough. They assumed they needed years of saving first.
Why VA may be considered
If his Certificate of Eligibility confirms entitlement, VA may allow a purchase with no down payment and no monthly mortgage insurance. Being first time buyers changes none of it.
What still needs review
The COE, the VA funding fee and whether a service connected disability rating exempts him, and whether the home meets VA property requirements.
When another program could fit better
Rarely, but if they build meaningful savings, running conventional alongside VA costs nothing.
The self employed buyer in Cobb County
The situation
Priya has run a design studio for four years. Her bank balance looks healthy, but after legitimate deductions her tax returns show far less than the business produces.
Why an alternative path may be considered
If her returns support the payment, conventional and FHA stay available. If they understate her income, a verified bank statement path may document it better.
What still needs review
How her income is received and deposited, how long the business has operated, and how the paths compare on her actual numbers.
When another program could fit better
If two years of returns support the loan comfortably, an agency program is the simpler road. Being self employed doesn't automatically mean an alternative path.
These scenarios are illustrative and fictional, offered as education only. They aren't rate quotes, preapprovals, approvals, or predictions of any borrower's outcome. Every file is underwritten on its own facts.
Local Guidance
First Time Buyer Guidance for Georgia and Atlanta Metro Homebuyers
Our team works where Georgia first purchases actually happen, from intown neighborhoods to the fast growing suburbs. Here's what that context changes about your decision.
Price points differ sharply across the metro
First time buyers in parts of Fulton and Cobb routinely shop above the price points common in Douglas, Paulding, Clayton, or Henry, and DeKalb and Gwinnett span the full range in a single week. The program that fits follows the price point more than the county line.
- Fulton
- DeKalb
- Cobb
- Gwinnett
- Clayton
- Henry
- Cherokee
- Forsyth
- Douglas
- Paulding
Loan limits rarely bind first time buyers here
For 2026 the baseline conforming limit for a one unit property is $832,750, and every Georgia county sits at baseline. The FHA one unit limit across the Atlanta metro is $718,750, which is lower, so there's a band where conventional works and FHA doesn't. Most first purchases fall under both.
Your monthly payment changes with the county line
Property tax rates and homeowners insurance costs vary across the metro, so two nearly identical homes at the same price can carry different monthly payments. The loan is the part everyone shops and escrow is the part nobody mentions, so we build real tax and insurance estimates into your numbers from the first conversation.
USDA eligibility surprises people in the outer counties
A meaningful share of Georgia sits inside USDA eligible areas, including communities in Paulding, Henry, and counties just past the metro edge that buyers assume are too suburban to qualify. Eligibility is by specific address, not county, and income limits apply, so we check the actual property.
Georgia is an attorney closing state
A closing attorney handles your settlement here, which differs from how closings work in much of the country. If you're relocating from a state that does this differently, we walk you through what changes.
Preparation is what wins competitive offers
When a home attracts multiple buyers, and in parts of this metro that's routine, showing up with your financing path chosen and your numbers documented makes your offer easier to take seriously.
UHome Mortgage serves buyers across Georgia and is also licensed in Alabama and Texas. Loan limits and program guidelines are set by federal agencies and change.
