If you're a first-time homebuyer in 2025, you’ve probably asked yourself this: “Can I actually afford to buy right now?”

The media loves to talk about sky-high prices and interest rates—but behind the headlines, there’s another story. A more hopeful one.

The truth? Yes, you can buy your first home in 2025. You just need the right strategy, the right support, and the right mindset.

Let’s break it down.

Affording Today’s Market: It's Not Just About Income

According to Redfin, the typical monthly mortgage payment for a median-priced U.S. home is around $2,570. That may sound like a lot—but that’s based on a 20% down payment, which many first-time buyers don’t need.

With options like FHA loans (as low as 3.5% down) or USDA loans (0% down in qualifying areas), you might be closer than you think.

The key is to get clear on what you can afford—not what the averages say. A pre-approval helps you see your real buying power based on your personal income, credit, and goals.

Support for First-Time Buyers Has Grown in 2025

One of the most exciting shifts this year? New and expanded programs for first-time buyers.

Here are a few real examples:

• HUD lists state and local down payment assistance programs, many of which offer grants or deferred loans.

• Some cities offer closing cost help or tax credits for first-generation buyers or public service workers.

• New credit scoring changes are helping renters qualify by factoring in on-time rent and utility payments.

• Fannie Mae and Freddie Mac are testing innovative pilot programs to support affordability for first-time and low-to-moderate-income borrowers.

You don’t need to navigate all of this alone. A loan expert can help you uncover programs based on your location and situation.

Why First-Time Buyers Are Still Winning in 2025

Despite the challenges, first-time buyers still make up nearly 1 in 3 home purchases, according to NAR.

Here’s what many are doing differently:

• Starting with strategy, not just searching. Getting pre-approved before you house-hunt.

• Buying with less than 20% down. Millions of buyers use 3%–5% down payment programs—and still close.

• Looking outside the hottest zip codes. Many first-timers are finding great homes just a bit outside city centers.

• Getting creative. Some buyers team up with family for a co-borrower or get gift funds to help with closing.

And more sellers are now open to helping with rate buydowns or closing cost credits to make deals happen.

So... Can You Really Afford to Buy?

You might be surprised how many first-time buyers say: “I didn’t think I could do it—but I did.”

Yes, it’s a competitive market. Yes, it takes planning. But the tools are there.

• You don’t need perfect credit.

• You don’t need a 20% down payment.

• You don’t need to figure it out alone.

You just need a clear plan and a loan expert who knows how to help you navigate your options.

Next Steps for First-Time Buyers

If you’re serious about buying a home in 2025, here’s what to do right now:

1. Talk to a mortgage professional to understand your options.

2. Ask about first-time buyer programs in your area—many are hidden gems.

3. Get pre-approved so you’re ready when the right home pops up.

4. Don’t assume you can’t afford it. Check the facts before you count yourself out.

There are more pathways to homeownership than ever before. The key is knowing which one fits you.