You have more advantages than anyone is telling you about.
First-time buyers in the DMV qualify for rate waivers, down payment programs, and pricing that repeat buyers don't get. Here's the math nobody shows you.
How much are rate add-ons costing you?
Two buyers with the same income can walk away with very different pricing. The difference is a stack of add-ons most lenders never show you, and first-time buyers can often get them waived.
Mortgage rates start high, then get reduced based on better credit, a bigger down payment, and so on.
It's the opposite. Rates start at the market rate and have hidden add-ons (called LLPAs) that increase your rate based on your scenario. And they stack.
Pick your credit score below and toggle on any details that match your loan. The teal line shows the rate add-on you'd normally pay. The gold line shows what changes when the FTHB AMI Waiver applies.
Peak Add-On (without waiver)
--
at the worst LTV tier
With FTHB Waiver
0.000%
across every LTV tier
Now see if your income qualifies for the waiver.
The waiver only applies if your qualifying income falls under your county's cap. Most people overestimate what counts. We don't always have to use every income source on file.
The first-time buyer rate add-on waiver.
Fannie Mae and Freddie Mac waive the biggest add-ons for first-time buyers under the income cap. Here's what that means, and what it's worth.
A 0.875% add-on is charged on the loan amount. That's $3,938 you pay at closing, or carry in a higher rate. The waiver takes it to $0.
What are LLPAs?
Every conventional mortgage comes with Loan-Level Price Adjustments. These are percentage points added to your base rate based on your credit score, down payment, property type, and other factors. They're the reason two buyers with the same income can get very different rates.
What gets waived?
If you're a first-time homebuyer in DC, Maryland, or Virginia with qualifying income at or below your county's limit ($196,920 in the DMV's high-cost areas, lower in some outer counties), Fannie Mae and Freddie Mac waive the credit score and LTV-based rate add-ons entirely. You start at the base market rate with nothing added on top.
What does that mean in dollars?
On a $450,000 loan, a 720 credit score buyer putting 5% down would normally carry a 0.875% add-on. Add-ons are charged on the loan amount, so that's $3,938, paid at closing or built into a higher rate for the life of the loan. With the FTHB waiver, that entire add-on disappears.
FTHB Waiver Eligibility
Haven't owned a home in the last 3 years
Property in DC, Maryland, or Virginia
In the DMV's high-cost areas. Lower limits apply further out, based on county AMI.
Fannie Mae or Freddie Mac financing
When this works, and when to skip it.
The waiver is worth thousands to the right buyer and nothing to the wrong one. Here's how to tell which one you are.
This is for you if
- You haven't owned a home in the last 3 years.
- Your qualifying income is at or under your county cap, up to $196,920 in high-cost DMV areas.
- You're using a conventional loan, backed by Fannie Mae or Freddie Mac.
- Your score and down payment carry an add-on today, like a 720 score with 5% down.
Skip it if
- You're using an FHA or VA loan. They don't price with these add-ons, so there's nothing to waive.
- You owned a home in the last 3 years.
- Your qualifying income is over your county cap, even after we look at which income has to count.
- You have a 780+ score and 25% or more down. Your add-on is already zero.
The complete guide for first-time buyers.
The FTHB waiver is one piece. The full guide covers loan programs, timelines, costs, DPA programs, and the mistakes to avoid before you apply.
Let's figure out exactly what you qualify for.
FTHB waiver, down payment assistance, loan program comparison... I'll walk through all of it for your specific situation. No pressure, no commitment, just the math.