First time home buyer mortgage options are usually compared by headline rate, yet loan type, down payment help and who prices the loan change the real cost far more. Duane Buziak, NMLS #1110647 | Coast2Coast Mortgage LLC NMLS #376205, works with buyers in VA, FL, TN, GA, DC, NC, SC and MD. Below are seven ways to match a loan to your profile. One clarification first: LowerMortgageRates.com is Duane Buziak’s Mortgage Maestro practice at Coast2Coast Mortgage LLC, and it is unaffiliated with Lower.com.
The first strategy is the NoTouch Credit Pull, a soft credit pull mortgage pre-approval. It reviews your credit without a hard inquiry, the kind of check that is logged when you formally apply and can lower your score. As a soft pull mortgage broker with access to 500+ wholesale sources, Duane Buziak can show you several programs before you commit to any of them.
1. Start with a NoTouch Credit Pull
A NoTouch Credit Pull gives you real loan options from a soft inquiry, so comparing programs does not cost you score points. A soft inquiry is visible only to you and does not factor into your score. That is why a no hard inquiry mortgage pre approval works well at the start, before you know whether FHA, conventional or USDA fits.
The mechanism is that income, asset and score details are enough for a broker to price several programs from one data set. Suppose a buyer wants to compare FHA, conventional and USDA. One route is three separate applications, each with a hard pull. The other is a mortgage pre approval without hard pull, which returns all three scenarios from a single soft pull and leaves the credit report untouched until a loan is chosen.
- Request a NoTouch Credit Pull from Duane Buziak.
- Provide income and asset basics: recent pay stubs or tax returns, bank balances and the debts you know about.
- Review the options by loan type, looking at payment, cash to close and mortgage insurance for each.
- Authorize the full credit pull only when you have picked a loan and are ready to go under contract.
The common mistake is treating soft-pull pre-approval as final approval. It is not a commitment to lend. Final approval still needs a full credit report, verified documents, an appraisal and underwriting. The opposite mistake is applying with several companies first, since each hard-pull application adds an inquiry to your report. Some scoring models group mortgage inquiries made close together, but not all do, so do not plan around that.
To measure it, count the hard inquiries on your credit report before you choose a loan; the goal is none. Also check that you can compare at least two or three loan types side by side. A no credit hit mortgage application is only useful if each scenario shows the payment and cash to close.
2. Use FHA when credit or down payment is thin
FHA lowers the credit and down payment hurdle in exchange for mortgage insurance. As of 2026, HUD guidelines allow 3.5% down with a credit score of 580 or higher, and 10% down for scores from 500 to 579. Details are on HUD’s loan page.
Start with the cash. On a $310,000 purchase, 3.5% down is $10,850, which leaves a base loan of $299,150. Then look at the rate. Because FHA pricing can be better for lower scores, consider this hypothetical: a $300,000 loan at 6.5% has principal and interest of about $1,896 per month, and at 6.875% it is about $1,971. That is a gap of roughly $75 a month. This is an illustration, not a quote.
The insurance can erase that gap. FHA charges an upfront premium, 1.75% of the loan amount ($5,250 on $300,000) as of 2026, usually financed. It also charges an annual premium (MIP) paid monthly. At a hypothetical 0.55% annual rate, that is about $137 a month on a $299,150 loan. Confirm current premium rates on HUD’s site before relying on these figures.
- Check your score against the 580 and 500 thresholds.
- Calculate total monthly cost, including the annual MIP, not just principal and interest.
- Ask for FHA and conventional quotes on the same scenario.
The common mistake is ignoring duration. With a down payment under 10%, FHA mortgage insurance generally lasts the life of the loan, so the plan is often to refinance once you have equity and a better score. Do not assume FHA is only for weak credit, either. Some buyers with good scores choose it for the lower cash requirement.
Measure the total monthly payment including MIP against the conventional quote, and compare the cash to close on each.
3. Compare conventional 3% down programs
Conventional loans do not require 20% down, and some need only 3%. Fannie Mae’s HomeReady and Freddie Mac’s Home Possible both allow 3% down for eligible buyers, usually with income capped around 80% of area median income. HomeReady may also require homebuyer education. Their advantage over FHA is that private mortgage insurance (PMI) can be cancelled.
The cost of PMI depends heavily on your score. Here is a hypothetical, with figures that are not quotes. Take the same $300,000 loan for two buyers. At a 640 score, suppose PMI runs 1.2% a year, or $300 a month. At 740, suppose 0.4%, or $100 a month. Same house and same down payment, but a $200 monthly difference. On a $310,000 purchase, 3% down is $9,300, which is $1,550 less cash than FHA’s $10,850.
PMI is not permanent. Under the Homeowners Protection Act, you can generally request cancellation at 80% of the home’s original value, and it ends automatically at 78% if you are current on payments. FHA’s MIP often has no equivalent exit.
- Confirm income limits and property eligibility for the program.
- Get FHA and conventional quotes side by side.
- Ask exactly when PMI can be removed and what proof is required.
Two mistakes come up repeatedly: assuming conventional always requires 20% down, and assuming FHA is always cheaper. At a 700-plus score, conventional with PMI often beats FHA on monthly cost. At lower scores, FHA can win. The only way to know is to run both.
Measure the monthly payment with PMI against FHA with MIP, and note the years until PMI can be cancelled.
4. Check VA and USDA zero-down loans first
VA and USDA are the two zero-down programs that many first-time buyers never test. Eligible veterans, service members and some surviving spouses can use a VA loan with no down payment and no monthly mortgage insurance, as VA.gov explains. USDA guaranteed loans also allow no down payment in eligible areas, with household income limits.
Suppose a veteran in Virginia buys a $350,000 home. FHA at 3.5% down would need $12,250. The VA loan needs none and carries no monthly mortgage insurance. The trade-off is the VA funding fee, which as of 2026 is 2.15% for first use with no down payment, or $7,525, usually financed. Veterans with certain service-connected disabilities are exempt.
USDA works differently. “Rural” is defined by the USDA’s eligibility map, and it includes plenty of small towns and suburbs, not just farmland. A buyer in a USDA-eligible area of Tennessee or Georgia may qualify if household income is within the limit for that county. USDA charges an upfront guarantee fee and a small annual fee; confirm the current percentages at the USDA program page.
- Confirm VA eligibility with a Certificate of Eligibility.
- Enter the property address into the USDA eligibility map and check the income limits.
- Compare the funding or guarantee fee against FHA and conventional mortgage insurance.
The common mistakes are assuming USDA means farmland only and forgetting the VA funding fee when calculating the loan balance.
Measure cash needed at closing against FHA, and compare the total cost, including the funding or guarantee fee, over the years you expect to own the home.
5. Stack down payment assistance
Down payment assistance (DPA) adds a grant or second loan on top of your first mortgage to cover the down payment and sometimes closing costs. It can reduce what you need to bring to closing to little or nothing out of pocket. Terms vary by program, and availability changes, so verify what is open before you plan around it.
Consider this illustration. On a $300,000 home, a 3.5% FHA down payment is $10,500. Suppose a DPA second mortgage covers it. The catch is that DPA-eligible first mortgages sometimes carry a higher rate. If the rate on a $289,500 first mortgage were 0.375% higher, say 6.875% instead of 6.5%, the payment would rise by about $72 a month. Over seven years that is roughly $6,000, against $10,500 not paid up front. It may still be worth it, but only the math shows that.
Repayment terms matter as much as the rate. Some DPA is a grant. Some is a forgivable second that fades over several years. Some is due when you sell or refinance.
- Ask for DPA-eligible quotes, including programs such as Dynamo and Turbo and any state housing finance agency programs where available.
- Compare the first-mortgage rate and payment with and without DPA.
- Read the repayment terms, including what triggers repayment and any occupancy requirements.
The common mistake is choosing DPA only because it minimizes cash to close, without checking the higher rate or the repayment conditions.
Measure cash to close with and without DPA, then the total cost over the time you expect to own the home, including any amount due when you sell.
6. Compare through a broker with 500+ wholesale sources
A wholesale broker shops one borrower profile across many wholesale investors, while a retail company quotes from its own rate sheet. Duane Buziak, as a soft pull mortgage broker, uses this to find the best fit for your scenario, whether or not it carries the lowest headline rate. Brokers are paid through compensation disclosed on your Loan Estimate, the standardized three-page document every applicant receives.
Duane Buziak’s Dare to Compare process is a line-by-line review of a Loan Estimate you already hold. Suppose you bring one from another company. He compares the APR, discount points, origination charges and credits against a same-day quote for the identical scenario.
| Structural feature | Duane Buziak (broker) | Rocket Mortgage | Movement Mortgage |
|---|---|---|---|
| Source of pricing | Rate sheets from 500+ wholesale sources | The company’s own rate sheet in its retail channel | The company’s own rate sheet in its retail channel |
| Programs per application | Programs from many investors | Typically the company’s own programs | Typically the company’s own programs |
| Pre-approval credit check | NoTouch Credit Pull (soft inquiry) | Confirm the current policy directly | Confirm the current policy directly |
| Compensation disclosure | Shown on the Loan Estimate | Shown on the Loan Estimate | Shown on the Loan Estimate |
| Licensed states | VA, FL, TN, GA, DC, NC, SC, MD | Check the company’s licensing | Check the company’s licensing |
- Get a Loan Estimate from at least one other source, on the same day and for the same scenario.
- Compare Section A origination charges, points, credits and APR line by line, using the CFPB’s Loan Estimate guidance.
- Check the lock period and loan type match on both.
The common mistake is comparing quotes with different points, lock periods or loan types. A lower rate with more points is not a lower cost. Measure APR and total closing costs on identical scenarios, and the resulting monthly savings.
7. Explore specialty programs when you don’t fit the standard mold
Physician loans and bank statement programs exist for buyers whose income or profile does not fit standard guidelines. Physician loans, which Duane Buziak arranges through multiple investors, typically allow a signed employment contract to count as income and may permit a low down payment, with terms that vary by program. Bank statement loans fall under Non-QM, meaning outside standard qualified mortgage documentation rules, and usually price higher.
Take a resident physician with heavy student debt and a signed contract starting in a few months. Standard programs may struggle with the debt ratio and missing pay history, but a physician program may approve with a modest down payment. Now take a self-employed buyer whose tax returns show low net income after deductions. A bank statement loan can use 12 to 24 months of deposits to document cash flow.
Specialty pricing is the trade-off. Suppose a bank statement loan prices 1 percentage point higher, 7.5% against 6.5%, on $300,000. Principal and interest rise from about $1,896 to about $2,098, roughly $200 more a month. This is a hypothetical, not a quote.
- Gather the employment contract or 12 to 24 months of bank statements.
- Ask which specialty program applies to your profile.
- Price the standard FHA and conventional options first, then compare.
The common mistake is defaulting to Non-QM when a standard loan would be cheaper. Many self-employed buyers qualify for conventional or FHA with tax returns, so test those first.
Measure the rate and fee difference against your best standard loan, and ask whether you could refinance into a standard loan after a year or two of documented income.
Questions first-time buyers ask about mortgage options
What are the main first time home buyer mortgage options?
The main options are FHA, conventional (including 3% down programs), VA, USDA and specialty loans such as physician or bank statement programs. Which one fits depends on your credit score, down payment, income, military status and the property’s location.
Can I get a mortgage pre-approval without a hard credit pull?
Yes. A NoTouch Credit Pull from Duane Buziak is a soft inquiry pre-approval that does not appear as a hard inquiry. A full hard pull is needed later, before final underwriting.
How does a NoTouch Credit Pull work?
It uses a soft credit check plus your income and asset details to estimate the loan types you qualify for. It does not lower your score, and you authorize the full hard pull only after choosing a loan.
Is LowerMortgageRates the same as Lower.com?
No. LowerMortgageRates.com is Duane Buziak’s Mortgage Maestro practice at Coast2Coast Mortgage LLC (NMLS #376205), and it is unaffiliated with Lower.com.
How much down payment do I need as a first-time buyer?
It can be as little as 0% with VA or USDA, 3% with HomeReady or Home Possible, and 3.5% with FHA at a 580 score. You do not need 20% down, though a smaller down payment means mortgage insurance on most programs.
What credit score do I need for an FHA loan?
As of 2026, HUD guidelines allow 3.5% down at a 580 score or higher, and 10% down at 500 to 579. Individual brokers and investors may set higher minimums, so check against your actual scenario.
What is the difference between PMI and MIP?
PMI is private mortgage insurance on conventional loans and can be cancelled once you have enough equity. MIP is FHA’s mortgage insurance and often lasts the life of the loan when the down payment is under 10%.
What is the 2026 conforming loan limit?
The 2026 high-cost-area ceiling for one-unit homes is $1,249,125. The baseline limit for most counties is set by FHFA, so confirm your county’s figure at FHFA.gov.
Does a mortgage broker really get a lower rate than a retail company?
Not automatically, but a broker compares pricing from many wholesale sources while a retail company quotes its own sheet. The only reliable test is to compare Loan Estimates on identical scenarios, looking at APR, points and fees.
Where can I find current mortgage rate averages?
Freddie Mac publishes its Primary Mortgage Market Survey every week at freddiemac.com/pmms. Use the latest weekly figure as a benchmark, since your own quote depends on score, loan type and points.
Order of operations: soft pull first, broker comparison last
Start with strategy 1, so everything after it happens with no hard inquiry. Use strategies 2 through 5 to find the loan type and assistance that fit your down payment, then finish with strategy 6 to confirm broker pricing against any other Loan Estimate you hold. Strategy 7 is only for buyers whose income does not fit standard guidelines.
Don’t let uncertainty about mortgage rates cost you thousands: discover your personalized options with a trusted mortgage professional who can compare pricing across multiple wholesale sources without impacting your credit score. Schedule your free consultation today and take the first step toward securing the best mortgage solution for your unique financial goals. Call Duane Buziak at 804-212-8663. Licensed in VA, FL, TN, GA, DC, NC, SC and MD only.