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Wondering how much you’ll gain by investing in stocks? It helps to look at the average stock market return for the last 10, 20, and 30 years.

A first-time homebuyer isn’t only someone purchasing a first home. It can be anyone who has not owned a principal residence in the past three years, some single parents, a spouse who has not owned a home, and more.

If the thought of a down payment and closing costs sends a chill down your spine, realize that first-time homebuyers often have access to special grants, loans, and programs.

“First-Time Homebuyer” Under the Microscope

To get a sense of who qualifies for a mortgage as a first-time homebuyer, let’s take a look at the government’s definition.

The U.S. Department of Housing and Urban Development (HUD) says first-time buyers meet any of these criteria:

•   An individual who has not held ownership in a principal residence during the three-year period ending on the date of the purchase.

•   A single parent who has only owned a home with a former spouse.

•   An individual who is a displaced homemaker (has worked only in the home for a substantial number of years providing unpaid household services for family members) and has only owned a home with a spouse.

•   Both spouses if one spouse is or was a homeowner but the other has not owned a home.

•   A person who has only owned a principal residence that was not permanently attached to a foundation (such as a mobile home when the wheels are in place).

•   An individual who has owned a property that is not in compliance with state, local, or model building codes and that cannot be brought into compliance for less than the cost of constructing a permanent structure.

For conventional (nongovernment) financing through private lenders, Fannie Mae’s criteria are similar.

Recommended: The Complete First-Time Homebuyer Guide

Options for First-Time Homebuyers

First-time homebuyers may not realize that they, like other buyers, may qualify to buy a home with much less than 20% down.

They also have access to first-time homebuyer programs that may ease the credit requirements of homeownership.

Federal Government-Backed Mortgages

When the federal government insures mortgages, the loans pose less of a risk to lenders. This means lenders may offer you a lower interest rate.

There are three government-backed home loan options: FHA loans, USDA loans, and VA loans. In exchange for a low down payment, you’ll pay an upfront and annual mortgage insurance premium for FHA loans, an upfront guarantee fee and annual fee for USDA loans, or a one-time funding fee for VA loans.

Note: SoFi does not offer USDA loans at this time. However, SoFi does offer FHA, VA, and conventional loan options.

FHA Loans

The Federal Housing Administration, part of HUD, insures fixed-rate mortgages issued by approved lenders. On average, more than 80% of FHA-insured mortgages are for first-time homebuyers each year.

If you have a FICO® credit score of 580 or higher, you could get an FHA loan with just 3.5% down. If you have a score between 500 and 579, you may still qualify for a loan with 10% down.

USDA Loans

The U.S. Department of Agriculture offers assistance to buy (or, in some cases, even build) a home in certain rural areas. Your income has to be within a certain percentage of the average median income for the area.

If you qualify, the loan requires no down payment and offers a fixed interest rate.

VA Loans

A mortgage guaranteed in part by the Department of Veterans Affairs requires no down payment and is available for military members, veterans, and certain surviving military spouses.

Although a VA loan does not state a minimum credit score, lenders who make the loan will set their minimum score for the product based on their risk tolerance.

💡 Quick Tip: When house hunting, don’t forget to lock in your home mortgage loan rate so there are no surprises if your offer is accepted.

Government-Backed Conventional Mortgages

Fannie Mae and Freddie Mac, government-backed mortgage companies, do not originate home loans. Instead, they buy and guarantee mortgages issued through lenders in the secondary mortgage market.

They make mortgages available that are geared toward lower-income, lower-credit score borrowers.

Freddie Mac’s Home Possible program offers down payment options as low as 3%. There are also sweat equity down payment options and flexible terms.

Fannie Mae’s 97% LTV (loan-to-value) program also offers 3% down payment loans.

A Mortgage for Certain Civil Servants

If you’re a law enforcement officer, firefighter, or EMT working for a federal, state, local, or Indian tribal government agency, or a teacher at a public or private school, the HUD-backed Good Neighbor Next Door Program could be a good fit. It provides 50% off the listing price of a foreclosed home in specific revitalization areas. In turn, you have to commit to living there for 36 months.

Homes are listed on the HUD website each week, and you have to put an offer in within seven days. Only a registered HUD broker can submit a bid for you on a property.

If you’re using an FHA loan to buy a home in the Good Neighbor Next Door Program, the down payment will be $100. If using a VA loan to purchase a house through the program, buyers will receive 100% financing. If using a conventional home loan, the usual down payment requirements stay the same.

State, County, and City Assistance

It isn’t just the federal government that helps to get first-time buyers into homes. State, county, and city governments and nonprofit organizations run many down payment assistance programs.

HUD is the gatekeeper, steering buyers to state and local programs and offering advice from HUD home assistance counselors.

The National Council of State Housing Agencies has a state-by-state list of housing finance agencies, which cater to low- and middle-income households. Contact the agency to learn about the programs it offers and to get answers to housing finance questions.


💡 Quick Tip: Jumbo mortgage loans are the answer for borrowers who need to borrow more than the conforming loan limit values set by the Federal Housing Finance Agency ($832,750 in most places, and up to $1,249,125 in high-cost areas). If you have your eye on a pricier property, a jumbo loan could be a good solution.

Using Gift Money

First-time homebuyers might also want to think about seeking down payment and closing cost help from family members.

If you’re using a cash gift, your lender will want a formal gift letter, and the gift cannot be a loan. Home loans backed by Fannie Mae and Freddie Mac only allow down payment gifts from someone related to the borrower. Government-backed loans have looser requirements.

Want to use your 401(k) to make a down payment? You could, but financial advisors frown on the idea. Borrowing from your 401(k) can do damage to your retirement savings.

The Takeaway

First-time homebuyers may still be in good shape even if they don’t have much of a down payment or their credit isn’t stellar. Lots of programs, from local to federal, give first-time homeowners a break.

Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% - 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It's online, with access to one-on-one help.

FAQ

Can you be considered a first-time homebuyer twice?

Yes, there are multiple scenarios in which you can be considered a first-time homebuyer. When you’re buying your first home is one, of course, but others include if you or your partner has not owned a home for three years prior to your closing, if you are a displaced homemaker who previously owned a home with your spouse, or if you are a single parent who previously owned owned a home with your ex.

What credit score is needed for a first-time homebuyer?

For a conventional loan, a first-time homebuyer will typically need a credit score of 620 or more. However, many homebuyers may be eligible for government-backed loans potentially available to people with lower scores, like FHA loans, VA loans, and USDA loans.

SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

SOHL-Q225-045

Starting salaries can vary greatly based on location or line of work, so there’s no one answer to the question, “What is a good starting salary?” The size of the paycheck will differ based on where someone lives, the industry they work in, the hiring institution or company, and other hard-to-tabulate variables.

It can be worthwhile to figure out a good starting salary in your field before sitting down with a prospective employer or HR representative to discuss pay. Here are some helpful resources to get a handle on entry level salary rates across the U.S., along with tips for negotiating compensation.

Understanding Entry Level Salaries

Entry level salary information changes on a regular basis, but many job-focused websites offer insights into the going rates. For instance, ZipRecruiter, a well-known employment marketplace, lists the average U.S. starting salary by state. In spring 2025, entry-level wages in North Carolina are $12.39 per hour or $25,763 per year, while New York pays $17.51 per hour or $36,426 per year, on average.

Still, even state-by-state salary averages don’t show the whole picture. Although 34 U.S. states currently have minimum wage requirements higher than the federal minimum wage, which remains set at $7.25 per hour, the amount an early-career new hire might expect can also vary by county and city within the same state.

Along with location, the industry an individual works in can play a big role in what kind of starting salary a new hire might expect. For instance, a data scientist at a tech company might be able to earn as much as $165,000 right out of the gate, while a newly minted journalist might expect something closer to $61,000.

One way to grasp what sort of salary an employee might expect is to do targeted research on the specific industry, location, and position you’re interested in. If you’re in the early stages of college, you might want to align your course of study with a high-paying entry level job.

How to Research a Good Starting Salary for Your Career Path

If you’re interviewing for jobs and you want to know if you’re being offered the current market rates for a particular position (or location), there are some websites that can help, including:

•   Payscale, for example, allows employees to create personalized salary reports based on their job title, years of experience, and city.

•   Salary.com offers a similar feature, allowing job seekers to search for positions by keyword and compare them accordingly.

•   Glassdoor publishes employee-generated information on salary by specific company and position. It also hosts reviews by current and former employees, which may help a job applicant learn more about what it’s actually like to work there.

Recommended: Average Pay in the U.S. Per Year

Negotiating a Higher Offer

If your dream job doesn’t come with a dreamy paycheck, there are ways to negotiate a higher offer.

Negotiating a salary can be scary, especially for a recent grad who’s never done it before. Nevertheless, discussing salary up front can have a significant effect on your paycheck — and, by extension, your long-term earnings.

When thinking about the salary negotiation, don’t forget about the benefits package. In addition to higher pay, you may want to factor such things as tuition reimbursement, a flexible schedule, or commuting expenses into your total compensation package.

Preparing to Negotiate

Before you sit down with the employer to negotiate, having a well-researched starting salary in mind is a good place to start.

Of course, it’s not likely that an early-career new hire can simply negotiate up to the salary of an employee in the same role with years of experience. But it’s still possible to make the case to hiring managers about why a higher starting rate is merited.

As you negotiate, be sure to:

Highlight Your Skills

When asking for a higher starting salary, it could be helpful to give concrete examples of how your current skills might benefit the company. In these conversations, it may be possible to push an offer up a few percentage points, especially when the skills required are in high demand.

Practice Your Pitch

Rehearsing what you’ll say ahead of time can help you hone a confident delivery style. What’s more, it can help you be prepared for questions that come your way regarding why you deserve higher pay.

Negotiate Other Benefits

On top of baseline salary, as mentioned, it’s also possible in some roles and industries to negotiate for other valuable forms of compensation — such as fitness stipends, work-from-home time, funding for continued education, and more.

Job candidates may also inquire about future career growth and promotion potential, which could lead to a bigger salary later down the road.

Navigating Post-College Life, Financially and Beyond

Navigating life after college can be exciting and challenging. Trying to make ends meet on a starting salary might be particularly tough, especially for those who need to pay back student loans. Approximately 42.7 million borrowers have federal student loan debt, with the average balance being $38,375.

A flexible and adaptable approach to finances and location could make the transition to post-college life more manageable. For instance, recent graduates who are in a position to choose a new place to live might opt to move to a city with a lower cost of living.

Learning how to make a budget can also help college grads manage their bills and living expenses.

Refinance Student Loan Debt

For borrowers struggling to pay student loans on a starting salary, additional options exist. Those with outstanding federal student loans may qualify for income-driven repayment plans, loan forgiveness for public service, or student loan deferment.

Another option is to refinance student loans with a private lender. This involves replacing your current loans with a new loan that ideally has a lower interest rate or better loan terms.

Refinancing student loan debt could potentially save a borrower money each month — or help them pay off student loans faster — depending in part on the student loan refinancing rates they get.

A student loan refinancing calculator can help you see how much you might save and whether refinancing makes sense for you.

It’simportant to note that refinancing federal loans makes them ineligible for federal benefits, like income-driven repayment and loan forgiveness.

Recommended: Student Loan Consolidation vs. Refinancing

The Takeaway

Getting a good starting salary in your first job depends on your occupation and location and the company doing the hiring, among other factors. Entry level salaries can vary widely, but it is possible to negotiate. Do some research to find out what jobs in your field and area typically pay, and then make a pitch to the hiring manager about why you deserve higher compensation.

As you’re settling into your life after college and managing your finances on a starting salary, it can be helpful to make a budget. This can make it easier to cover your living expenses and the bills you owe, including student loan payments.

Looking to lower your monthly student loan payment? Refinancing may be one way to do it — by extending your loan term, getting a lower interest rate than what you currently have, or both. (Please note that refinancing federal loans makes them ineligible for federal forgiveness and protections. Also, lengthening your loan term may mean paying more in interest over the life of the loan.) SoFi student loan refinancing offers flexible terms that fit your budget.

FAQ

What is considered a good starting salary in 2025?

A good starting salary in 2025 depends on where you live, your occupation, and the company or institution doing the hiring, among other factors. The average starting salary in the U.S. for 2025 graduates is $68,680, according to the National Association of Colleges and Employers. To get a sense of what someone in your field might earn for an entry-level job, you can check out websites like Payscale and Salary.com.

What’s the average entry-level salary in the U.S.?

The average entry-level salary in the U.S. for college graduates in 2025 is $68,680, according to the National Association of Colleges and Employers.

What are the highest paying entry-level business jobs?

In general, the highest paying entry-level business jobs are management consultant, which has an average entry-level salary of approximately $86,584; IT business analyst, with an average starting salary of about $62,390; and investment associate, with an average starting salary of around $53,056. Keep in mind that your salary also depends on where you live and the company that’s hiring, among other factors.

How can I increase my starting salary offer?

To increase your starting salary offer, be prepared to negotiate. First, research what the starting salary is for the position in your location. You can find this information on Payscale and Salary.com. Practice what you plan to say ahead of time so that you can speak confidently. Be sure to highlight the skills you would bring to the job and explain with concrete examples, how those skills could benefit the company.

Finally, in addition to salary, you can negotiate benefits such as vacation time, the ability to work from home, and even commuting expenses. Even if you don’t score an increase in your starting salary, you may be able to get some other valuable perks.

Is $50,000 a good starting salary out of college?

It depends on the field you’re in and your location, but $50,000 is below the average starting salary in the U.S. of $68,680 for college graduates in 2025. However, for those in certain fields, such as psychology, in which the average starting salary is $44,700, $50,000 would be a good entry level salary.

What factors affect a good starting salary?

Factors that affect a good starting salary include location, the industry you’re in, the degree you have, and the job you’re applying for. For example, in 2025, engineering graduates are expected to have the highest entry-level pay, with an average salary of more than $78,000. Plus, jobs in different locations pay different wages. The average general starting salary in New York state is more than $10,000 more than the average in North Carolina, for instance.

SoFi Student Loan Refinance
Terms and conditions apply. SoFi Refinance Student Loans are private loans. When you refinance federal loans with a SoFi loan, YOU FORFEIT YOUR ELIGIBILITY FOR ALL FEDERAL LOAN BENEFITS, including all flexible federal repayment and forgiveness options that are or may become available to federal student loan borrowers including, but not limited to: Public Service Loan Forgiveness (PSLF), Income-Based Repayment, Income-Contingent Repayment, extended repayment plans, PAYE or SAVE. Lowest rates reserved for the most creditworthy borrowers. Learn more at SoFi.com/eligibility. SoFi Refinance Student Loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org).

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.