First-Time Homebuyer Programs: State and National Resources
If you’re buying a house for the first time, there are many programs available to help you achieve your homeownership goal. First-time homebuyer programs can help make related costs more manageable and may include down payment and closing costs assistance, reduced interest rates and grants.
Use the map below to view information about first-time homebuyer assistance programs in your state or to learn more about the first-time homebuyer loans available nationwide. Then learn about some national first-time homebuyer programs and how to choose the best one for you.
First-time homebuyer programs by state
State first-time homebuyer programs
| Connecticut | Connecticut first-time homebuyer programs |
|---|---|
| Maine | Maine first-time homebuyer programs |
| Massachusetts | Massachusetts first-time homebuyer programs |
| New Hampshire | New Hampshire first-time homebuyer programs |
| New Jersey | New Jersey first-time homebuyer programs |
| New York | New York first-time homebuyer programs |
| Pennsylvania | Pennsylvania first-time homebuyer programs |
| Rhode Island | Rhode Island first-time homebuyer programs |
| Vermont | Vermont first-time homebuyer programs |
State first-time homebuyer programs
| Alabama | Alabama first-time homebuyer programs |
|---|---|
| Arkansas | Arkansas first-time homebuyer programs |
| Florida | Florida first-time homebuyer programs |
| Delaware | Delaware first-time homebuyer programs |
| District of Columbia | District of Columbia first-time homebuyer programs |
| Georgia | Georgia first-time homebuyer programs |
| Kentucky | Kentucky first-time homebuyer programs |
| Louisiana | Louisiana first-time homebuyer programs |
| Maryland | Maryland first-time homebuyer programs |
| Mississippi | Mississippi first-time homebuyer programs |
| North Carolina | North Carolina first-time homebuyer programs |
| Oklahoma | Oklahoma first-time homebuyer programs |
| South Carolina | South Carolina first-time homebuyer programs |
| Tennessee | Tennessee first-time homebuyer programs |
| Texas | Texas first-time homebuyer programs |
| Virginia | Virginia first-time homebuyer programs |
| West Virginia | West Virginia first-time homebuyer programs |
State first-time homebuyer programs
State first-time homebuyer programs
At a glance: National first-time homebuyer programs
Click on each loan program in the table below to learn about the details and requirements.
| Program | Best for |
|---|---|
| Fannie Mae HomeReady® | Low- and moderate-income borrowers with at least a 620 credit score |
| Freddie Mac Home Possible® | Borrowers with no credit scores |
| FHA loans | Borrowers with limited down payment savings and lower credit scores |
| VA loans | Military borrowers who want a no-down-payment home loan |
| USDA loans | Low- and moderate-income borrowers buying a home in rural areas. |
| HUD homes | Borrowers looking for a discounted home |
| Good Neighbor Next Door | Public service workers who want to buy a home in a revitalization area |
1. Fannie Mae HomeReady®
The HomeReady loan program is a conventional mortgage guaranteed by Fannie Mae and offered through participating lenders. Available to low- and moderate-income borrowers, HomeReady loans have low down payment requirements, allow flexible income sources and carry reduced private mortgage insurance (PMI).
Eligibility requirements
- Down payment minimum: 3% (mortgage insurance required until loan balance reaches 80% of home value)
- Credit score minimum: 620
- Debt-to-income (DTI) ratio maximum: 36% (exceptions can made for up to 45% or 50% in some circumstances)
- Income restrictions: Limited to 80% of the area median income (AMI)
- First-time homebuyer restrictions: None
Best for: Low- and moderate-income borrowers with at least a 620 credit score.
2. Freddie Mac Home Possible®
Home Possible is another conventional loan program for low- and moderate-income borrowers. Home Possible loans have a low down payment minimum, discounted mortgage insurance and flexible income guidelines.
Eligibility requirements
- Down payment minimum: 3% (private mortgage insurance required until loan balance reaches 80% of home value)
- Credit score minimum: 660 (borrowers with no credit scores may qualify with a 5% down payment)
- DTI ratio maximum: 43%
- Income restrictions: Limited to 80% of the AMI
- First-time homebuyer restrictions: None
Best for: Low- or moderate-income borrowers with at least a 660 credit score who are seeking a low-down-payment loan. It’s also a great option for those with no credit score, if they can put down at least 5%.
3. FHA loans
FHA loans are backed by the Federal Housing Administration (FHA) and follow mortgage guidelines set by the U.S. Department of Housing and Urban Development (HUD). Popular with first-time buyers, FHA loans have low down payment requirements and flexible qualification guidelines. But while FHA mortgages don’t have income restrictions, they are subject to maximum loan limits based on the borrower’s county and property type. In addition, FHA borrowers pay both an upfront and an annual FHA mortgage insurance premium.
Eligibility requirements
- Down payment minimum: 3.5% with a 580 (or higher) credit score; 10% with a credit score between 500 and 579
- Credit score minimum: 580 with a 3.5% down payment; 500 with a 10% down payment
- DTI ratio maximum: 43% (exceptions up to 50% allowed in some cases)
- Loan limits: Subject to FHA mortgage limits based on county and property type
- Income restrictions: None
- First-time homebuyer restrictions: None
Best for: Borrowers with limited down payment savings or some blemishes in their credit history.
Considering a fixer-upper property?
Borrowers purchasing a fixer-upper can combine the costs of buying a home and renovating it into one loan with an FHA 203(k) mortgage. Guaranteed by the FHA, these loans follow the same basic requirements as standard FHA loans. There are two types of FHA 203(k) loans: limited, for minor improvements and repair costs below $35,000, and standard, for larger repair projects. Borrowers may need to set aside contingency reserves to complete the repairs.
Eligibility requirements include:
- Down payment minimum: 3.5% with a 580 (or higher) credit score; 10% with a credit score between 500 and 579
- Credit score minimum: 580 with a 3.5% down payment; 500 with a 10% down payment
- DTI ratio maximum: 43%
4. VA loans
The U.S. Department of Veterans Affairs (VA) offers a loan program to active-duty service members, veterans and eligible surviving spouses. VA loans have no down payment requirement or income limits and offer flexible credit guidelines. Borrowers won’t pay ongoing mortgage insurance, but they do have to pay an upfront funding fee.
Eligibility requirements
- Down payment minimum: No down payment with full VA entitlement
- Credit score minimum: No minimum score, but many participating lenders require a 620 credit score
- DTI ratio maximum: 41% (exceptions made in some circumstances)
- Borrower requirements: Must meet VA’s minimum service requirement
- Income restrictions: None
- First-time homebuyer restrictions: None
Best for: VA loans are ideal for eligible military borrowers, especially those seeking a no-down-payment loan.
5. USDA loans
The U.S. Department of Agriculture (USDA) offers loan programs to borrowers purchasing homes in rural areas. The USDA’s guaranteed loan program, provided through participating lenders, is aimed at low- and moderate-income borrowers. Buyers must pay both an upfront and an annual guarantee fee.
In the direct loan program, the USDA finances the mortgages directly. These loans are aimed at very low- and low-income borrowers.
Eligibility requirements
- Down payment minimum: No minimum down payment
- Credit score minimum: No minimum, but participating lenders may require a 640 credit score
- DTI ratio maximum: 41%
- Location requirements: Property must be located in a designated rural area
- Income restrictions: Up to 115% of median household income
- First-time homebuyer restrictions: None
Best for: Very-low, low- and moderate-income homebuyers purchasing in designated rural areas.
6. HUD Homes
This program gives buyers an opportunity to purchase foreclosed homes owned by HUD at below-market prices. Borrowers can use a wide variety of loans to buy a HUD home, depending on the home’s condition. Notably, though, a borrower can review listings in their state, but they’ll need to work with a HUD-registered real estate agent or broker to actually bid on a property.
Eligibility requirements
- Down payment minimum: Varies by loan program
- Credit score minimum: Varies by loan program
- Income restrictions: None
- First-time homebuyer restrictions: None
Best for: Buyers looking for a deeply discounted home who can take on the cost and responsibility of renovations and repairs.
7. Good Neighbor Next Door
Good Neighbor Next Door is a mortgage program offered by HUD for public service professionals including police officers and teachers. Eligible borrowers receive a 50% discount on the purchase price of HUD properties in designated revitalization areas. And if they finance the home with an FHA loan, the minimum down payment is only $100 at time of writing. To receive the purchase price discount, borrowers take on a silent second mortgage, meaning they won’t make any payments or pay interest as long as they remain in the home for three years.
Eligibility requirements
- Borrower requirements: Must be a full-time law enforcement officer, teacher (pre-K through 12th grade), firefighter or emergency medical technician
- Property requirements: Must purchase a HUD home
- Down payment minimum: $100
- Credit score minimum: Varies by loan program
- Income restrictions: None
- First-time homebuyer restrictions: None
Best for: People in public service careers who want to purchase a home in a revitalization area and are willing to live in the home they purchase for at least three years.
Learn more about other options for low- and no-down-payment mortgages.How to choose a first-time homebuyer program
There are a few steps to take before selecting a first-time homebuyer program:
- Determine how much you can afford: One of the first steps in your homebuying journey should be to figure out how much house you can actually afford. Use a home affordability calculator to estimate the mortgage amount you can qualify for based on your income and debt.
- Check your credit: Your credit score is a key factor lenders will look at when determining your eligibility for a loan. It’s a good idea to check your credit score before applying, so there are no unpleasant surprises.
- Shop around: Comparing different assistance programs on the national, state and local levels can help you find the best option for your situation (and wallet).
Read more tips for first-time homebuyers.Frequently asked questions
Many first-time homebuyer programs are open to buyers who haven’t owned a property in the past three years. This includes divorced spouses who have jointly owned a home with an ex-spouse over the past three years.
While there isn’t a federal tax break for first-time homebuyers, some states and local governments offer tax incentives (such as mortgage credit certificates) to help reduce homeownership costs.
Choosing the best mortgage lender will depend on the type of loan you’re applying for, how much you want to borrow and many other factors. Review our guide to the best mortgage lenders.