First-time buyers made up 30% of sales in August 2026: how to compete and what to prioritize
The short answer
First-time buyers accounted for 30% of existing-home sales in August 2026, up from 28% a year earlier, according to NAR. With 30-year rates around 7% but more homes for sale, first-time buyers do best by getting fully pre-approved, using low-down-payment programs such as FHA (3.5% down) or conventional loans with 3% down, checking state down payment assistance, and negotiating seller-paid closing costs or rate buydowns.
Your step-by-step plan
- Know your number. Decide a comfortable monthly payment, then work backward to a price. Affordability guide.
- Check your credit at AnnualCreditReport.com and fix errors. Paying card balances below 30% of their limits can help your score quickly. Credit score guide.
- Pick a loan type. FHA for lower scores, conventional 3% down programs for good credit, VA for eligible veterans, USDA for eligible rural areas. Compare loan types.
- Look for assistance. Most states have a housing finance agency with down payment or closing cost help, often for first-time buyers with income limits.
- Get pre-approved, not just pre-qualified. Why it matters.
- Negotiate beyond price. With supply at a decade high, sellers are more open to paying closing costs or a buydown.
Budget for the costs people forget
Closing costs (often 2% to 5% of the loan), moving, immediate repairs, and a cash cushion. Lenders may also require reserves. What goes into closing costs.
Should you wait for rates to drop?
No one can time rates. If you find the right home at a payment you can handle, buying now and refinancing later if rates fall is an option, though not a guarantee. Waiting can also mean competing with more buyers if rates drop.
Common questions
Who counts as a first-time homebuyer?
For many programs, anyone who has not owned a home in the past three years counts, even if they owned one before.
How much do I need saved to buy my first home?
Down payment (0% to 5% for many first-time programs) plus closing costs (often 2% to 5% of the loan) plus a cushion. Assistance programs and seller credits can reduce what you bring.