Press Enter
How First-Time Home Buyers Can Get Help at Every Stage of the Process
Buying a first home involves more decision points than most people expect, and help exists for nearly every one of them. Before you compare programs, get a rough read on your finances: your income, your existing debt, and the monthly payment you can comfortably carry. That number determines which loan types and down payment assistance programs actually apply to you, so settle it before anything else. From there, four categories of support carry most first-time buyers through the process: free guidance to get oriented, programs that reduce what you need upfront, a buyer's agent to represent you once you start touring homes, and a documented performance record for the home you're considering. Here is where to find each one.
| If this sounds like you... | Start here |
|---|---|
| I don't know where to begin and feel overwhelmed | A free HUD-approved housing counselor |
| I don't have much saved for a down payment | State HFA/local DPA programs, or an FHA, VA, or USDA loan |
| I haven't found an agent yet | A buyer's agent (you'll sign a written agreement with them before they can tour homes with you) |
| I'm deciding between a few homes and want to compare them on more than price and photos | Pull up the Pearl SCORE™ Report for each one and compare them pillar by pillar |
| I want to know a home's baseline performance before I even schedule a showing | Look up its free Pearl SCORE inside the Pearl app |
| I'm under contract and need to verify condition | An independent licensed home inspection |
| Step | Phase Name | Key Action | Time / Complexity |
|---|---|---|---|
| 1 | Get Free, Unbiased Guidance | Connect with a HUD-approved housing counselor or complete a free homebuyer education course | Low complexity, one session |
| 2 | Reduce Your Upfront Cost | Compare state HFA/DPA programs against FHA, VA, USDA, and conventional low-down-payment loans | Moderate, several days of research |
| 3 | Get Dedicated Representation | Sign a written buyer representation agreement with a real estate agent before your first tour | Low complexity, one conversation |
| 4 | Know What You're Actually Buying | Look up a home's free Pearl SCORE™, then pull a Pearl SCORE Report for your finalists | Low complexity, minutes per home |
This order is deliberate: each step narrows your options for the next one. Guidance clarifies what you can afford before you shop for financing. Financing sets your price range before you engage an agent. Representation protects your interests before you set foot in a home. And a documented performance record lets you compare finalists on more than price and photos before you write an offer. Working the steps in this sequence keeps you from touring homes before you understand your budget, or making an offer before you understand what you're actually buying.
Start with a HUD-approved housing counselor or a free homebuyer education course before you commit to anything.
Contact a HUD-approved housing counselor through HUD's counselor locator. Counseling is free or low-cost and covers budgeting, credit, and the loan process without steering you toward a specific lender.1
Prefer to work at your own pace? Fannie Mae's HomeView offers a free, seven-module homebuyer education course online.2
Freddie Mac's CreditSmart Homebuyer U offers a comparable self-paced course and produces a completion certificate that some low-down-payment loans require.3.
Ask your counselor or course provider which local down payment assistance programs you may qualify for. That sets up Step 2.
Pro tip: Many low-down-payment conventional and state programs require a completed homebuyer education certificate before closing, not just before you apply. Finish this step early so it doesn't hold up your closing later.
Compare state and local down payment assistance against the major government-backed loan programs before assuming you need 20% down.
Check your state's housing finance agency (HFA) and local down payment assistance (DPA) programs first. Eligibility and award amounts vary by state and program.
FHA loans require as little as 3.5% down for borrowers with a credit score of 580 or higher.4
VA loans require no down payment for eligible active-duty service members, veterans, and surviving spouses.5
USDA loans require no down payment on eligible rural and suburban properties, subject to household income limits.6
Conventional loans such as Fannie Mae HomeReady7 and Freddie Mac Home Possible7b allow down payments as low as 3% for eligible low-to-moderate income buyers.
| Program | Down Payment | Who Qualifies | Best For |
|---|---|---|---|
| FHA Loan | As low as 3.5% | More lenient credit score thresholds than conventional loans | Buyers with limited savings or a shorter credit history |
| VA Loan | 0% | Active-duty service members, veterans, eligible surviving spouses | Military-connected buyers |
| USDA Loan | 0% | Eligible rural/suburban properties; household income limits apply | Buyers open to USDA-eligible locations |
| Conventional (HomeReady / Home Possible) | As low as 3% | Low-to-moderate income buyers; reduced PMI, flexible down payment sources | Buyers who want a conventional loan without 20% down |
Source: HUD.gov, VA.gov, USDA Rural Development, Fannie Mae, Freddie Mac. See References 4-7b.
Pro tip: Down payment percentage isn't the only cost difference between these programs. FHA and conventional loans under 20% down carry mortgage insurance; VA loans don't. Ask your lender to walk through the total cost of each option, not just the down payment.
Sign a written buyer representation agreement before your agent tours a single home with you.
As of August 17, 2024, MLS participating agents working with a buyer must have a signed written agreement in place before touring a home, whether the tour is in person or a live virtual walkthrough.8
The agreement discloses how your agent is compensated. Broker fees and commissions are negotiable and not set by law.8
You don't need a signed agreement to attend an open house on your own or to ask a real estate professional general questions.8b
Use this conversation to clarify what your agent will do for you: property searches, scheduling, negotiation, and coordinating inspections.
Common pitfall: Don't confuse a one-tour or short-term touring agreement with a longer, exclusive buyer representation agreement. Ask what the agreement covers and for how long before you sign.
Pull a home's performance record before you tour it, and compare finalists on more than price and photos.
Look up any address inside Pearl app for a free Pearl SCORE™, a 1-to-1,000 rating covering nearly 97 million U.S. single-family homes across five home performance pillars that impact daily life lived in a home: Safety, Comfort, Operations, Resilience, and Energy.9
When you're comparing a short list, pull a Pearl SCORE Report for each finalist to see what public records and any homeowner-added detail show about the home's baseline performance, pillar by pillar.10
Pearl SCORE documents whether a performance feature or system, such as a radon mitigation system or a documented insulation upgrade, is present, and shows how a home compares to others nearby on the pillars that shape day-to-day living. Bring regional risk factors and indoor air quality questions to your inspector and local disclosures; Pearl SCORE gives you the documented starting point, drawn from public records and any homeowner-added detail, to ask those questions from.11
A greyed-out checkmark means the home is unclaimed and its SCORE is built entirely from public records. That SCORE is still accurate; it's simply less complete than a claimed home's profile, where the owner has confirmed additional detail.12
Still schedule an independent licensed home inspection once you're under contract. The performance record tells you what's documented; the inspection tells you the property's current condition.
Pearl SCORE™ uses a 1-to-1,000 scale to rate every single-family home in the U.S.9 One number. Five dimensions of home performance: Safety, Comfort, Operations, Resilience, and Energy.
Safety: Documents whether protections like carbon monoxide detectors, smoke alarms, and radon or lead mitigation systems are present.
Comfort: Covers temperature consistency, humidity control, drafts, and outdoor noise, so you know if a home tends to run hot, cold, or stuffy.
Operations: Reflects HVAC equipment, insulation, air sealing, ductwork, and water-efficient appliances, including documented age and efficiency upgrades.
Resilience: Measures preparedness for storms, wildfire, flooding, or outages, plus backup systems like generators or outage-protection battery storage.
Energy: Tracks solar panels, EV charging readiness, smart energy management, and battery storage used for solar pairing, tracked separately from Operations.
Nearly 97 million homes already have a SCORE on record.9 The Pearl SCORE Report inside the Pearl app shows what public records reveal about a home's baseline performance across all five pillars, plus any detail the current owner has added.10
Pearl SCORE is a neutral data provider. It documents whether a performance feature or mitigation system is present, drawing on public records as well as homeowner-provided data such as HVAC system type and vintage, documented insulation upgrades and air sealing work, and water system improvements.11 It shows how a home compares to others nearby and what building characteristics are documented, giving you additional context to bring into your own decision.11
You may notice some homes show a greyed-out checkmark and others a blue one. An unclaimed home's SCORE is still accurate; it's built entirely from public records. A claimed home simply has a more complete profile, because the owner has added and confirmed additional detail.12
This isn't a substitute for your inspection; it's a head start. The Pearl SCORE Report surfaces what's already documented so know what to ask about ahead of an inspection, while a licensed inspector still handles the hands-on assessment of the property's current condition.
Common pitfall: Don't treat an unclaimed home's SCORE as a red flag. It reflects what public records show, not a gap in the home's actual performance.
Down payment isn't the only upfront cost. Closing costs, typically a percentage of the loan covering appraisal, title, and lender fees, and earnest money, a good-faith deposit credited toward your purchase at closing, are separate line items worth planning for early. Set aside a cash reserve too, since moving costs and any immediate repairs tend to show up in the first few weeks of ownership.
By now you know where to go for each part of the process: free guidance if you're not sure where to start, assistance programs if the down payment is the sticking point, a buyer's agent once you're ready to tour homes (remember, you'll sign a written agreement with them before that first tour), and both an inspection and a documented performance record once you've found the home you want. None of these resources require you to figure this out alone.
Pearl is building the national standard for home performance, and every single-family home in the U.S. already has a Pearl SCORE™ on record. If you're ready to take the next step, look up a home you're considering: the Pearl SCORE Report inside the Pearl app shows what public records reveal about its baseline performance across Safety, Comfort, Operations, Resilience, and Energy, before you ever schedule a tour.
1. U.S. Department of Housing and Urban Development. "Find a Housing Counselor." https://www.hud.gov/findacouns...
2. Fannie Mae. "HomeView Homeownership Education Course." https://www.fanniemae.com/educ...
3. Freddie Mac. "CreditSmart Homebuyer U." https://creditsmart.freddiemac...
4. U.S. Department of Housing and Urban Development. "Loans." https://www.hud.gov/helping-am...
5. U.S. Department of Veterans Affairs. "Purchase Loan." https://www.va.gov/housing-ass...
6. USDA Rural Development. "Single Family Housing Guaranteed Loan Program." https://www.rd.usda.gov/progra...
7. Fannie Mae. "HomeReady Low Down Payment Mortgage." https://yourhome.fanniemae.com...
7b. Freddie Mac. "Home Possible." https://sf.freddiemac.com/work...
8. National Association of Realtors. "Written Buyer Agreements 101." https://www.nar.realtor/the-fa...
8b. National Association of Realtors. "Consumer Guide to Open Houses and Written Agreements." https://www.nar.realtor/the-fa...
9. Pearl. "Pearl SCORE™: a whole-home performance rating." https://pearlscore.com/home-sc...
10. Pearl. "Pearl SCORE™ Report." https://pearlscore.com/score-r...
11. Pearl. "The Best Home Performance Solutions in 2026." https://pearlscore.com/news/be...
12. Pearl. "Pearl Score FAQ." https://pearlscore.com/pearl-s...
