Thinking about buying your first home in 2026? It’s a big decision, and mortgages can be confusing. Here’s a guide to help you understand deposits, mortgage rates, and loan programs for first-time buyers.

Key Facts and Figures for First-Time Buyers in 2026

  • Average 30-year mortgage rate: 6.32% as of early 2026, up from 6.12% last week but still below the 2024 peak of 7.22%. Rates have fluctuated significantly since 2023, reflecting ongoing economic shifts and Federal Reserve policy changes.
  • Typical starter home price in top markets: around $180,000, though this varies widely by region. For example, prices in Charleston, West Virginia, and Peoria, Illinois, remain near or below this level, making them attractive for first-time buyers. In contrast, some cities like Austin, Texas, have higher median starter home prices, sometimes exceeding $300,000.
  • Zero down payment loans available through Alliant Credit Union for loans up to $625,000, including specialized programs for physicians and other professionals. These loans often come with competitive interest rates and no private mortgage insurance (PMI), reducing overall monthly costs.
  • Minimum credit scores: 620 for conventional loans, 500 for FHA loans, which are designed to be more accessible. USDA and VA loans typically require credit scores around 640, but lenders may vary.
  • Top starter home cities include Charleston, WV; Peoria, IL; and Binghamton, NY, all known for affordable housing markets, good local amenities, and growing job opportunities that appeal to new homeowners.

Step-by-Step Guide to Getting Your First-Time Buyer Mortgage

Step 1: Check Your Eligibility and Credit Score

Start by pulling your credit report and score from one of the major credit bureaus: Equifax, Experian, or TransUnion. Aim to do this at least three months before applying. Conventional loans usually require a minimum credit score of 620, but some lenders may prefer 640 or higher for better terms. FHA loans allow scores as low as 500, though a higher score usually means better rates.

If you’re a healthcare professional or eligible through Alliant Credit Union membership, you could qualify for zero down payment mortgages. Alliant’s Advantage Mortgage program, for example, offers no down payment and no PMI for loans up to $625,000, which is above the national median home price, giving you more buying power.

Step 2: Consider Your Down Payment Options

Down payments typically range from 3% to 20%. Putting down at least 20% avoids private mortgage insurance, which can add $100 to $200 or more to your monthly payment. However, if you don’t have that much saved, options like FHA loans require just 3.5% down, and USDA or VA loans offer zero down payment for qualified buyers.

Alliant Credit Union’s zero-down loans stand out because they waive PMI entirely, not just for a time, which can save you thousands over the life of the loan. Remember, though, that you must meet their membership requirements first—usually a $5 donation to join. This small step opens access to better loan terms.

Step 3: Explore Loan Schemes and Programs

Besides Alliant’s programs, you should look into government-backed loans:

  • FHA loans: Require 3.5% down, allow lower credit scores, and are ideal if your credit is still building.
  • USDA loans: Zero down payment loans for rural and some suburban areas. Income limits typically apply, but they offer competitive rates and low closing costs.
  • VA loans: Zero down payment and no PMI for veterans and active military personnel. They often have lower interest rates and flexible credit requirements.

Check state and local housing authorities as well for additional first-time buyer assistance programs, including down payment grants and tax credits. These programs vary widely but can sometimes cover thousands of dollars in upfront costs.

Step 4: Get Pre-Approved

Getting pre-approved shows sellers you’re serious and lets you know exactly how much home you can afford. To do this, submit your financial documents—pay stubs, tax returns, bank statements—to a lender.

They’ll review your income, debt, and credit to determine your borrowing limit.

Apply through multiple lenders to compare rates and terms. Alliant Credit Union requires membership first, which involves a $5 donation to open an account. Their pre-approval process is straightforward, and members often report quick turnaround times.

Step 5: Find Your Home in an Affordable Market

Start your search in cities known for affordable starter homes. Charleston, West Virginia, Peoria, Illinois, and Binghamton, New York, offer homes near or below the $180,000 average, making your mortgage payments more manageable.

Use online tools like Zillow, Realtor.com, or the U.S. Census Bureau’s housing data to understand local market trends. Also, consider commute times, school quality, and neighborhood safety, which affect long-term home value and your quality of life.

Once you find a home, submit an offer with your pre-approval letter. If accepted, move to the final mortgage approval and closing process.

In 2026, there are good chances to find favorable mortgage deals, especially if you look into zero-down loans from places like Alliant Credit Union. Mortgage rates change often, so keep an eye on them and know your loan choices before you decide. If you prepare well and pick the right program, owning your first home is possible.