Buying a home marks a major milestone, and Houzeo makes it easier to explore the best first-time homebuyer programs across the US. From California and Florida to Washington and Ohio, you can compare programs and find one that fits your budget.
Whether you’re looking for first-time home buyer loans, down payment assistance programs, or first home buyer grants, Houzeo connects you to the right options.
KEY TAKEAWAYS
- First-time home buyer programs are offered at the state, federal, nonprofit, and employer levels.
- Moreover, these programs may have different rules depending on your location, job, or income.
- In many cases, the assistance comes as low-interest first-time home buyer loans or grants that don’t need to be repaid.
- Additionally, programs like these make it easier for first-time home buyers to afford a new home and manage upfront costs.
- With Houzeo, you can quickly explore and apply for first-time home buyer programs that fit your needs, making your path to homeownership smoother and more affordable.
According to the National Association of Realtors, the typical first-time homebuyer is around 38 years old
What is the First-Time Homebuyer Program?
First-time homebuyer programs are designed to help individuals and families purchase their first home through a combination of grants, loans, and flexible credit requirements .
Assistance can include low or zero down payments, reduced interest rates, lower closing costs, or more lenient credit requirements. The goal is to make homeownership more accessible to buyers.
They provide low-interest loans, grants, and down payment assistance programs, which help buyers afford upfront costs without straining your pockets.
Many of these programs also offer relaxed credit requirements and lower closing costs making it easier for buyers with limited credit history or low income qualify.
Types of First-Time Homebuyer Programs Across US
| Type of Program | Description / Benefits |
|---|---|
| Down Payment Assistance | Helps buyers who lack sufficient savings. Offers grants or low-interest loans repayable in installments. |
| Mortgage Credit Certificates (MCC) | Tax credit that reduces tax liability based on mortgage interest paid, resulting in long-term savings. |
| Closing Cost Assistance | Provides funds to cover closing costs like lender fees, title insurance, and other transaction expenses. |
| FHA Loans | Backed by the Federal Housing Administration, ideal for buyers with credit scores ≥580. Only 3.5% down payment required. |
| VA Loans | For active duty military, veterans, and eligible spouses. No down payment; loans issued through private lenders. |
| USDA Loans | For low/moderate-income buyers in eligible rural areas. Often no down payment and lower interest rates. |
| Fannie Mae & Freddie Mac Loans | Conventional loans with low down payments (HomeReady 3% by Fannie Mae, Home Possible by Freddie Mac). |
| Good Neighbor Next Door | 50% discount for teachers, law enforcement, firefighters, EMTs. FHA loan buyers may pay only $100 down. |
| Employer Assistance Programs | Employers may offer down payment help, homebuyer education, or partnerships for better mortgage rates. |
| Education Programs | Workshops, online courses, or counseling. Successful participants may receive up to $30K in assistance. |
Down Payment Assistance
These programs help first-time buyers who don’t have enough savings for a down payment. Some offer grants, while others provide low-interest loans. Payments can often be spread over time in smaller installments.
Low-down-payment conventional loans
Conventional loans are the most common type of mortgage and require as little as 3% down, making them appealing to first-time buyers with smaller savings. Some of the low down payment conventional options include:
Conventional 97 mortgage
This conventional loan, backed by Fannie Mae and Freddie Mac, requires only 3% downpayment and 620 credit score. Borrowers must pay private mortgage insurance (PMI) until reaching 20% home eq uity, making it a popular choice foe any first time home buyer with limited savings.
Home Possible mortgage
Freddie Mac’s Home Possible program is its version of Fannie Mae’s HomeReady loan, designed for first-time home buyers with low to moderate income.
HomeReady Mortgage
Similar to the Conventional 97 loan, Fannie Mae’s HomeReady mortgage program lets first-time home buyers purchase a home with only a 3% down payment. While private mortgage insurance (PMI) is required, the premiums are typically lower, making it an affordable first-time home buyer loan option.
Home Possible mortgage
Freddie Mac’s Home Possible program is its version of Fannie Mae’s HomeReady loan, designed for first-time home buyers with low to moderate income.
HomeOne mortgage
Another Freddie Mac-backed loan, HomeOne requires only a 3% downpayment and PMI, and is available exclusively to first -time buyers.
HFA Preferred and HFA Advantage
Offered through state housing finance agencies (HFAs), both programs allow the same 3% downpayments. Fannie Mae backs HFA Preferred, while Freddie Mac backs HFA Advantage, making them great loan options.
| Feature | Fannie Mae (HomeReady) | Freddie Mac (Home Possible) |
|---|---|---|
| Minimum Down Payment | 3% | 3% |
| Credit Score Requirement | 620+ | 620+ |
| Income Limits | Up to 80% of area median income (AMI) | Up to 80% of area median income (AMI) |
| Private Mortgage Insurance (PMI) | Required until 20% equity | Required until 20% equity |
| Unique Benefit | More flexible for higher debt-to-income ratios | Allows non-occupant co-borrowers (e.g., parents helping) |
| Best For | Buyers with stable income and moderate credit | Buyers needing help from family or shared income sources |
Government-insured home loans
FHA Loans
FHA loans are backed by the Federal Housing Administration. They allow buyers with credit scores of 580 or higher to purchase a home with just 3.5% down. These loans make buying a home easier for those with limited credit or savings.
VA Loans
VA loans are available to active-duty military, veterans, and eligible surviving spouses. They require no down payment and are issued through private lenders. The program supports military families in achieving homeownership.
USDA Loans
USDA loans are for low- or moderate-income buyers in eligible rural areas. They often offer low interest rates and no down payment. These loans help encourage rural development and affordable housing.
Mortgage Credit Certificates (MCC)
MCCs are tax credits that reduce your federal income tax based on mortgage interest paid. Over time, these credits can result in significant savings. They make homeownership more affordable for first-time buyers.
| Feature | Fannie Mae (HomeReady®) | Freddie Mac (Home Possible®) |
|---|---|---|
| Minimum Down Payment | 3% | 3% |
| Credit Score Requirement | 620+ | 620+ |
| Income Limits | Up to 80% of area median income (AMI) | Up to 80% of area median income (AMI) |
| Private Mortgage Insurance (PMI) | Required until 20% equity | Required until 20% equity |
| Unique Benefit | More flexible for higher debt-to-income ratios | Allows non-occupant co-borrowers (e.g., parents helping) |
| Best For | Buyers with stable income and moderate credit | Buyers needing help from family or shared income sources |
Additional down payment assistance options
Closing Cost Assistance
This aid helps buyers cover expenses during the closing process. It can include lender fees, title insurance, and other transaction-related costs. The program reduces upfront financial strain.
Good Neighbor Next Door Program
This program provides a 50% discount to teachers, law enforcement officers, firefighters, and EMTs. Qualified FHA buyers may pay as little as $100 down. It’s designed to support community-focused professionals.
Employer Assistance Programs
Some employers include homeownership benefits in their packages. These may include down payment assistance, homebuyer education, or partnerships with lenders for better mortgage rates.
Education Programs
These programs provide workshops, online courses, or counseling on the homebuying process. Completing the program may qualify first-time buyers for up to $30K in assistance.
The most common loan for first-time homebuyers in the US is the FHA loan.
- FHA loans are backed by the Federal Housing Administration. They’re popular because they allow a low down payment (as little as 3.5%) and have flexible credit requirements.
- Conventional loans, VA loans, and USDA loans are also good options. However, FHA loans are often the top choice for first-time buyers who have limited savings or lower credit scores.
Small Emergency Loans for First-Time Home Buyers
Small emergency loans or grants can be a big help when you’re part of a first-time home buyer program. They act as a safety net, especially when surprise expenses pop up.
For example, some housing agencies offer second-tier loans that cover sudden costs like heating repairs or closing fees. These can help you stay on track even while you’re paying off your main first-time homebuyer loan.
In addition, many of these programs work like down payment assistance programs. They’re often available through state or local housing agencies, nonprofit groups, or special community funds.
However, to qualify for these emergency loans, you usually need to be part of an approved first-time home buyer program, meet certain income limits, and plan to live in the home as your main residence.
Small emergency loans are short-term loans that help first-time home buyers manage sudden expenses. For example, they can pay for quick home repairs, closing costs, or other surprise bills. These loans often come from local housing agencies, nonprofits, or state programs. Also, they may be paired with your first-time home buyer program to make buying a home easier and more affordable.
💡 Pro Tip: Before choosing a program, check your local housing market trends to understand price changes and find the best time to buy.
Popular First-Time Home Buyer Programs
Every US state has a housing finance authority (HFA) that promotes homeownership and manages related programs. Explore HFAs and other first-time homebuyer programs resources available in your state to find loans, grants, and assistance options.
| State | Popular First-Time Home Buyer Programs |
|---|---|
| California | CalHFA MyHome Assistance offers deferred loans for down payments and closing costs. |
| Florida | Hometown Heroes Program gives up to 5% (max $35,000) toward down payment and closing costs. |
| Texas | My First Texas Home provides low-rate loans and down payment help, including for veterans. |
| New York | SONYMA Achieving the Dream offers low fixed rates and up to $15,000 in assistance. |
| Washington | Home Advantage Program provides affordable rates and down payment support statewide. |
| Ohio | Your Choice! DPA Program offers 2.5% or 5% assistance for down payment or closing costs. |
| Virginia | Virginia Housing Program includes fixed-rate loans, grants, and MCC tax credits. |
| Illinois | IHDAccess Program provides up to $10,000 in forgivable down payment help. |
| North Carolina | NC Home Advantage Mortgage offers 3% assistance plus optional MCC credit. |
| Georgia | Georgia Dream Program gives affordable loans and up to $10,000 for down payments. |
| Maryland | Maryland Mortgage Program (MMP) offers low rates and flexible assistance options. |
| Massachusetts | MassHousing DPA Program provides up to $30,000 in down payment help. |
| Indiana | First Place Program gives low rates and up to 6% in assistance. |
| Pennsylvania | Keystone Home Loan offers low rates and optional down payment help. |
| Michigan | MSHDA MI Home Loan provides up to $10,000 in down payment aid statewide. |
Explore First-Time Home Buyer Programs Near You
If you’re searching for first-time home buyer programs, remember that each state has its own options. For example, the first-time home buyer programs in Louisiana offer easy down payment help and low-interest loans to make buying a home simpler.
In the same way, the first-time home buyer programs in Montana focus on affordable mortgages for people with moderate incomes.
As you move west, the first-time home buyer programs in Medford, Oregon include helpful grants and online classes that guide you through every step. Likewise, the first-time home buyer programs in Milwaukee offer forgivable loans and down payment aid, making it easier to buy your first home faster.
In California, both the first-time home buyer programs in Orange County and the first-time home buyer programs in Riverside County give buyers flexible loan choices and help with closing costs.
On the East Coast, the first-time home buyer programs in Pittsburgh, PA provide low mortgage rates and extra support for your down payment and closing fees.
How to Apply for a First-Time Homebuyer Program?
Buying your first home can feel challenging at first. However, applying for a first-time homebuyer program becomes much easier once you understand the steps. First, learn how the process works, and then find out who qualifies for first-time homebuyer programs across the US.
Check Your Eligibility
Before applying, find out who qualifies for first time home buyer programs in your state.
Most programs are designed for:
- Haven’t owned a home in the last three years
- Meet the income and home price limits
- Have a credit score of around 620 or higher
- Plan to live in the home as your main residence
To make things easier, talk to a trusted lender or housing agency that offers first-time home buyer programs. They can explain the eligibility steps, help you compare first-time home buyer loans, and connect you with the best down payment assistance programs in your area.
💡 Pro Tip: Some programs also help veterans, teachers, or essential workers — even if they’ve owned a home before.
Explore State and Local Programs
Each state offers different first-time homebuyer programs and down payment assistance options.
Visit your state housing agency website (like CalHFA, Florida Housing, or My First Texas Home) There, you can easily compare benefits, check eligibility, and review current interest rates.
💡 Pro Tip: Every state offers different first-time home buyer programs, and each one comes with its own perks. Take time to compare programs in your state before applying.
You might find options that offer lower interest rates, grants, or down payment assistance, helping you save thousands on your first home buyer loan and making your journey to homeownership much easier.
Get Pre-Approved for a Mortgage
Getting pre-approved for a mortgage is one of the most important steps for first-time home buyers. It helps you understand how much you can afford before you start looking for a home. In addition, pre-approval shows sellers that you’re a serious and confident buyer, which can make your offer stand out.
The process is simple. You share your income, credit, and financial details with a lender. Then, the lender reviews your information and gives you a pre-approval letter with your budget limit. With this, you can shop for homes that fit your price range and avoid surprises later.
Overall, getting pre-approved saves time, builds confidence, and helps you move faster when you find your dream home.
A mortgage pre-approval is when a lender reviews your income, credit, and finances to decide how much you can borrow for a home.
It gives you a clear idea of your budget and shows sellers that you’re a serious and qualified buyer a big advantage for first-time homebuyers.
Complete a Homebuyer Education Course
In these short courses, you’ll learn about credit, budgeting, and what happens when you close on your home. Most classes are available online, so you can finish them easily from home. They usually take only a few hours, making them simple and helpful for first-time buyers.
Here are some of the options you can look at:
- Fannie Mae HomeView: This free online homebuyer course helps you learn every step of buying a home. It’s easy to follow and available in English and Spanish.
- eHome America: A simple online homebuyer education class that walks you through everything — from saving for your home to closing the deal.
- Colorado Housing & Finance Authority : CHFA offers online and in-person homebuyer classes for Colorado residents. These courses make the homebuying process easier to understand.
- Money Management International : MMI provides HUD-approved online homebuyer courses that are flexible and easy to complete at your own pace.
- MassHousing Homebuyer Education: Designed for Massachusetts first-time homebuyers, this program offers online and local classes through trusted education providers.
You should take a homebuyer education course because it helps you understand the home-buying process in simple steps. It teaches you how to manage money, improve your credit, and choose the right loan. Plus, it prepares you for what happens before, during, and after buying a home. This makes the whole process easier, less stressful, and more affordable.
Apply for the Program
To get started, apply through an approved lender or housing agency. The process is simple and helps you move one step closer to owning your home. You’ll just need to share some basic documents, such as:
- Proof of income and employment
- Recent tax returns and bank statements
- Photo ID and credit details
Once you submit everything, your lender will review your application and guide you through the next steps. This makes the process smooth and stress-free.
Find Your Dream Home and Close 🏡
After you’re approved, you can start house hunting within your price range. Then, once you find the right home, your lender will review the details, finalize your loan, and finally, you’ll close on your new property.
Knowing who qualifies for first-time homebuyer programs can help you access lower interest rates and down payment assistance. So, take some time to explore your options and find the program that fits your needs best!
Which First-Time Homebuyer Program Works Best for You?
Not every first-time homebuyer program is the same. The right one depends on your income, job, and lifestyle. Here’s a simple guide to help you choose the best fit!
| If You Are… | Best Program to Try | Why It’s a Great Choice |
|---|---|---|
| A low-income buyer | FHA Loan | It’s easy to qualify and requires only a small down payment. Plus, it has flexible credit rules. |
| A veteran or active military member | VA Loan | You can buy a home with no down payment and no mortgage insurance, making it a great benefit for service members. |
| Living in a rural area | USDA Loan | This program offers 0% down and low interest rates, perfect for buyers in rural communities. |
| A teacher, nurse, or public worker | Hometown Heroes or Good Neighbor Next Door Program | These programs provide down payment help and special home discounts, making homeownership more affordable. |
| A recent graduate | Grants for Grads or SmartBuy Program | These options can help pay off student loans or cover your down payment, giving you a strong start. |
| A moderate-income buyer | Conventional 97, HomeReady, or Home Possible Loan | You’ll need just 3% down, and with good credit, you can enjoy competitive rates and flexible terms. |
If you’re using a first-time homebuyer program, you’re already on the right track to saving money on your new home. The next step is finding the perfect place to buy. Explore homes for sale in America and discover affordable options that fit your budget, lifestyle, and program benefits.
