a starter home is usually one that’s more modest in size, typically three bedrooms or less, under 1,800 square feet, and at the lower end of the price range in a local real estate market. starter homes will often need some repairs or updating but are a great entry point if you are a young buyer and have a limited amount of money for a down payment. you may also have an opportunity to purchase a new home that’s geared toward the design, size, and financing needs of first-time homebuyers. new home builders often offer special in-house financing to make the home more affordable, which can potentially increase your buying power.