First-Time Homebuyer Loans: What You Need to Know in 2025

Buying your first home in San Diego can be a thrill and a overwhelm. With prices rising and rates changing, 2025 is the year to act smart.

As a trusted mortgage broker in San Diego, Key Real Estate Capital is here to walk you through the journey of first-time homebuyer loans and choosing the right financing for you. Whether you’re curious about your eligibility or just want to learn more about San Diego home loans, this guide is for you.

First-Time Homebuyer Loans

First-time homebuyer loans are mortgage programs designed for people buying their first property. To qualify you typically must not have owned a home in the last three years. These loans often have lower down payments, flexible credit requirements and lower closing costs.

Mortgage Loan Options for First-Time Buyers

As a first-time buyer you’ll have several mortgage types to choose from:

• FHA Loans: Government-backed and great for buyers with lower credit scores or smaller down payments.
• VA Loans: For veterans, active-duty service members and eligible spouses, zero down payment and no mortgage insurance.
• Conventional Loans: Good for buyers with good credit and stable income. These loans often have better long-term rates and fewer fees. Conventional Loans

Understanding these options will help you make a informed decision. If you’re not sure where to start, Key Real Estate Capital has flexible Loan Options for every buyer profile.

San Diego-Specific Loan Programs & Down Payment Assistance

California has several statewide programs for first-time buyers like CalHFA and the Mortgage Credit Certificate (MCC) program. San Diego also has down payment assistance programs that can help bridge the affordability gap. These incentives can reduce your upfront costs and even lower your monthly payments making homeownership more affordable in high-cost areas.

To see if you’re eligible based on your location, check out our Service Areas to find local programs.

Getting Ready for the Home Loan Process

Before applying for a mortgage you should prepare. Start by checking your credit score and pulling your credit report. Then gather financial documents like pay stubs, W-2s, tax returns and proof of assets. Consider getting pre-qualified or pre-approved, it gives you an advantage in San Diego’s competitive market.

You can use our free Loan Rate Calculator to see what your monthly payment could be.

Choosing the Right Mortgage Broker

Not all lenders are the same and choosing the right mortgage broker can save you time, money and stress. Working with a local expert like Key Real Estate Capital means you get advice tailored to San Diego’s housing market.

We work closely with our clients to help them understand their financing options and provide personalized support. Learn more about our values and mission on our About Us page.

Fixed vs Adjustable

Should you choose a fixed-rate mortgage or an adjustable-rate mortgage (ARM)? A fixed-rate loan has consistent monthly payments, great for long-term stability.

An ARM may have a lower initial rate but can change over time. First-time buyers often prefer fixed-rate loans but ARMs can be good if you plan to move or refinance in a few years. Use our Mortgage Calculator to compare the long-term impact of both.

Mistakes First-Time Buyers Make

We Many first-time buyers make avoidable mistakes. These include:

• Not budgeting for additional expenses like property taxes and homeowners insurance.
• Ignoring pre-approval before house hunting.
• Overestimating their affordability without using tools like our calculators.
• Not comparing multiple lenders.

Avoiding these pitfalls is crucial. Our team can help you navigate each step from pre-qualification to closing.

Why Choose Key Real Estate Capital for Your First Home Loan

At Key Real Estate Capital we specialize in helping first-time buyers get competitive mortgage rates and navigate the loan process smoothly. Whether you’re looking for a conventional mortgage, government-backed loan or even alternative financing like Hard Money / Bridge Loans or Investor Loans we can help you find the best fit.

Our lending professionals are licensed in multiple cities including Riverside, Seattle and Phoenix so we’re a great partner for relocation buyers as well.

Get started with first-time homeownership in San Diego today!