First-Time Home Buyer Programs 2026: State Grants Lookup [Table] + 0% Down Checklist
Buying your first home in 2026? There are 2,679 active down payment assistance programs nationwide. You could get up to $150,000 in assistance, plus 0% down payment loans (VA/USDA). Current rates (October 2026): 30-year fixed 7.40% (Freddie Mac PMMS, Oct 15), FHA ~7.15%, VA ~7.20%. Use our state-by-state lookup table and eligibility checklist below to find every federal, state, and local program you qualify for. Compare today's rates from 50+ lenders →
Quick Answer: What First-Time Buyer Help Can I Get in 2026?
- ✓ Federal loans: FHA 3.5% down (580 score), VA 0% down (veterans), USDA 0% down (rural), Conventional 3% down.
- ✓ State DPA: 2,679 active programs. 8% are outright grants; 32-36% are forgivable after 5-15 years; 56% are deferred-payment seconds.
- ✓ Biggest programs: California Dream For All up to $150K/20%, Texas My First Texas Home up to 5% of loan, Florida Hometown Heroes up to $35K.
- ✓ Most buyers qualify if: No home in last 3 years, income under 80-120% AMI, 620-660 credit, and completion of a homebuyer education course.
⚡ Top 5 First-Time Buyer Programs
1. FHA Loan
3.5% down, 580 credit score
2. VA Loan (Veterans)
0% down, no PMI
3. USDA Loan (Rural)
0% down, low rates
4. State Grants
$5K-$25K FREE money
5. Conventional 3%
3% down, 620 credit
🎯 See Which Programs You Qualify For
Get pre-approved and find out which first-time buyer programs you qualify for. Free in 3 minutes:
First-Time Home Buyer Programs 2026: 2,679 DPA Programs, Up to $150K Free Money
In 2026, there are 2,679 active down payment assistance (DPA) programs nationwide. Federal options include FHA (3.5% down, 580 credit), VA (0% down, no PMI), USDA (0% down, rural areas), and Conventional (3% down, 620 credit). State grants range from $2,000 to $150,000 (California Dream For All). First-time buyer = no home ownership in past 3 years. Total potential assistance: $10K-$150K depending on location.
📅 October 2026 Update: Why Q4 Is a Sweet Spot for First-Time Buyers
- DPA funds reset January 1 — many 2026 programs are nearly depleted. State housing agencies fund grants annually. If a 2026 program fits you, apply before December 31 — waitlists for the biggest programs (CalHFA MyHome, FL Hometown Heroes) have already formed in past Q4s.
- Rates are at their lowest point of 2026. The 30-yr conventional sits near 6.3% vs 7.1% in January — on a $350K loan that's ~$180/month cheaper and ~$12K more buying power. Check your rate with a first-time buyer program →
- New 2027 programs are being announced now. Several states (CO, MN, WA) have previewed expanded 2027 DPA funding and new shared-appreciation pilots launching January. See the 2027 new state grants preview →
Federal First-Time Buyer Programs
The federal government offers 4 main loan programs for first-time buyers. These are available nationwide and have the lowest down payments.
Program #1: FHA Loans (3.5% Down)
FHA loans are the most popular first-time buyer program. They're backed by the government and accept low credit scores.
| Requirement | FHA Standard | Notes |
|---|---|---|
| Down Payment | 3.5% | $14K on $400K home |
| Credit Score | 580 | 500-579 = 10% down |
| DTI Ratio | 50% | Very flexible |
| PMI | 0.55-0.85% | For life (unless 10%+ down) |
| Loan Limits | $524K-$1.2M | Varies by county |
| First-Time Buyer? | No | Anyone can use FHA |
FHA 3.5% down + state grants = close with almost nothing out of pocket.
✅ FHA PROS:
• Low down payment (3.5%)
• Low credit score OK (580)
• High DTI allowed (50%)
• Gift money allowed for down payment
• Can combine with state grants
❌ FHA CONS:
• PMI for life (unless 10%+ down)
• Upfront PMI fee (1.75% of loan)
• Loan limits (can't buy expensive homes)
• Property must meet FHA standards
Program #2: VA Loans (0% Down, Veterans Only)
VA loans are the BEST first-time buyer program if you're a veteran, active military, or surviving spouse. 0% down and no PMI!
✅ VA LOAN BENEFITS:
• 0% down payment (buy with $0 down!)
• No PMI (save $200-300/month)
• Lower rates than FHA/Conventional
• No loan limits (for full entitlement)
• Flexible credit (580-620 minimum)
• Can reuse multiple times
Example Savings:
$400K home: VA 0% down vs FHA 3.5% down = $14K savings upfront + $250/month PMI savings = $104K over 30 years!
Program #3: USDA Loans (0% Down, Rural Areas)
USDA loans offer 0% down for homes in rural and suburban areas. Covers 97% of US geography!
| Requirement | USDA |
|---|---|
| Down Payment | 0% |
| Credit Score | 640 |
| Income Limit | 115% of AMI |
| Location | Rural/suburban only |
| PMI | 0.35% (lower than FHA) |
Program #4: Conventional 3% Down
Conventional 3% down programs (HomeReady, Home Possible) are great for first-time buyers with good credit (680+).
💡 CONVENTIONAL 3% BENEFITS:
• Only 3% down ($12K on $400K home)
• PMI drops off at 20% equity (unlike FHA)
• Lower PMI than FHA if good credit
• Higher loan limits than FHA
• No upfront PMI fee
Requirements:
• 620 credit minimum (680+ for best rates)
• Income limits (varies by area, typically $100K-$150K)
• First-time buyer OR low-income
🎯 Get Pre-Approved for First-Time Buyer Programs
See which federal programs you qualify for (FHA, VA, USDA, Conventional 3%). Free pre-approval in 3 minutes:
Get Pre-Approved (See Your Programs)State Down Payment Assistance Programs 2026: Lookup Table
There are 2,679 active down payment assistance (DPA) programs across the U.S. in 2026. Only 8% are outright grants; most are forgivable or deferred second mortgages. Use this table to estimate your state's maximum assistance, then confirm exact limits with your state Housing Finance Agency (HFA).
| State | Key Program | Max Assistance | Income Limit* | Type | Min Credit |
|---|---|---|---|---|---|
| California | CalHFA MyHome / Dream For All | Up to $150K or 20% | $145K-$256K | Forgivable second/shared appreciation | 660 |
| Texas | My First Texas Home (TDHCA) | Up to 5% of loan | $95K-$120K | Forgivable second (3 yr) | 640 |
| Florida | Hometown Heroes + FL Assist | Up to $35K | $90K-$130K | Forgivable/deferred | 640 |
| New York | SONYMA Achieving the Dream | Up to $50K | $120K-$180K | Forgivable second | 620 |
| Pennsylvania | PHFA Keystone Advantage | Up to $15K | $100K-$120K | Forgivable (10 yr) | 640 |
| Massachusetts | MassHousing One Mortgage + DPA | Up to $25K | $130K-$175K | Forgivable second | 660 |
| Colorado | CHFA + Metro Mortgage Assistance | Up to $20K | $95K-$175K | Forgivable (7 yr) | 620 |
| Maryland | Maryland Mortgage Program + DSHL | Up to $25K | $100K-$154K | Forgivable (7 yr) | 640 |
| Illinois | IHDA Access Forgivable | Up to $10K | $80K-$109K | Forgivable (10 yr) | 640 |
| Virginia | VHDA DPA Grant | Up to 3.5% of price | $80K-$140K | Forgivable grant | 640 |
| Washington | Home Advantage / House Key | Up to $15K | $95K-$145K | Deferred second | 640 |
| Arizona | Home Plus | Up to $30K | $95K-$122K | Forgivable (3 yr) | 640 |
| Georgia | Georgia Dream | Up to $12.5K | $80K-$102K | Forgivable (10 yr) | 640 |
| North Carolina | NC Home Advantage | Up to $10K | $80K-$110K | Forgivable | 640 |
| Ohio | OHFA Your Choice! / Grants for Grads | Up to 5% of price | $85K-$120K | Forgivable (5-10 yr) | 640 |
*Income limits vary by county/metro and household size. Check your state HFA for exact 2026 figures.
🎯 Find DPA Programs in Your State — Free
Most DPA money goes unclaimed because buyers don't know it exists. Get matched with approved lenders who offer your state's programs and see how much FREE money you qualify for.
See My State's DPA Programs →💰 HOW STATE GRANTS WORK:
1. Apply through an approved lender who offers the program
2. Take a HUD-approved homebuyer education course (8 hours online, $75-150)
3. Get pre-approved for a first mortgage (FHA/VA/USDA/Conventional)
4. Lender submits DPA application — funds applied at closing
5. Forgivable seconds become FREE after 5-15 years of owner-occupancy
6. Deferred seconds are repaid when you sell, refinance, or pay off the first mortgage
Example: $400K home in California
• FHA 3.5% down = $14,000
• CalHFA MyHome (3.5%/$14K deferred) = covers down payment
• Closing cost assistance + MCC = $2K/year tax credit
• You bring $0 toward the down payment!
Mortgage Credit Certificate (MCC) - Save $2,000/Year
MCC tax credit gives you 20-50% of your mortgage interest back as a tax credit (not deduction). Saves $2,000-$4,000/year!
Example: MCC Savings
Loan Details:
- • $400K loan at 7.40% = ~$29,600/year interest (Freddie Mac PMMS, Oct 15)
- • MCC rate: 30%
- • Tax credit: ~$8,800/year
- • Max credit: $2,000/year (IRS limit)
Annual Savings:
- • Tax credit: $2,000/year
- • 30-year savings: $60,000
- • Effective rate: 7.40% → ~6.90%
Compare 5+ Lender Rates in 2 Minutes
The same borrower on the same day gets different rates from different lenders. On a $400K loan, a 0.50% gap = $32,000 over 30 years. Soft pull only — no SSN needed for initial quotes.
6.50%
Best rate today
$90/mo
Gap vs avg lender
2 min
To compare rates
Soft pull only • No obligation • 300+ lenders
How to Stack Programs for Maximum Savings
The secret is combining multiple programs. Here's how to get $20K-$40K in total assistance:
Example: Maximum Stacking Strategy
Buyer Profile:
- • First-time buyer in California
- • Income: $120,000/year
- • Credit score: 680
- • Buying: $500,000 home
Programs Stacked:
- • FHA loan: 3.5% down = $17,500
- • CalHFA grant: $15,000 (covers most of down payment)
- • MCC tax credit: $2,000/year savings
- • Employer match: $10,000 (if offered)
Total Assistance:
- • Down payment grant: $15,000
- • Employer match: $10,000
- • MCC (30 years): $60,000
- • Total: $85,000 in assistance!
Cash Needed at Closing:
- • Down payment: $17,500
- • Minus CalHFA grant: -$15,000
- • Minus employer match: -$10,000
- • Closing costs: $12,000
- • Total cash needed: $4,500!
Who Qualifies as a "First-Time Buyer"?
Good news: You might qualify even if you've owned a home before!
📐 FIRST-TIME BUYER DEFINITION:
You qualify if:
✅ Haven't owned home in past 3 years (most common)
✅ Never owned a home (obviously)
✅ Divorced/separated and lost home in settlement
✅ Single parent who only owned with ex-spouse
✅ Owned only manufactured home not on permanent foundation
✅ Owned only property not in compliance with building codes
Example: You owned a home 5 years ago, sold it, and have been renting since. You qualify as first-time buyer for most programs!
Application Process: Step-by-Step
- Check Eligibility (Day 1)
Visit your state housing finance agency website. Check income limits, credit requirements, and eligible areas. Most states have online eligibility calculators.
- Take Homebuyer Education Course (Week 1)
Required for most grants. 8-hour online course costs $75-150. Covers budgeting, home shopping, mortgage process. Get certificate at end.
- Find Approved Lender (Week 1-2)
Not all lenders offer state DPA programs. Use your state's approved lender list. Interview 3-5 lenders to compare. Compare DPA-friendly lenders →
- Get Pre-Approved (Week 2)
Submit application with income docs, credit check, bank statements. Lender will tell you which programs you qualify for and how much assistance.
- Apply for Grant (Week 2-3)
Lender submits grant application on your behalf. Some states have limited funding (first-come, first-served). Apply early!
- Find Home (Week 4-8)
Shop within price limits. Home must meet program requirements (FHA standards, USDA rural area, etc.).
- Close with Assistance (Week 12)
Grant funds applied at closing. Reduces cash you need to bring. Sign grant agreement (forgivable or repayable terms).
🎯 Ready to Get Your First Home?
Get pre-approved and see which programs you qualify for. Find out how much FREE money you can get:
Frequently Asked Questions
What first-time home buyer programs can I use in 2026?
In 2026, first-time buyers can combine federal loans (FHA 3.5% down, VA 0%, USDA 0%, Conventional 3%) with state/local down payment assistance. There are 2,679 active DPA programs nationwide: 8% are outright grants, 32-36% are forgivable after 5-15 years, and 56% are deferred-payment second mortgages. See which programs you qualify for →
Which state has the best first-time buyer program?
California offers the largest potential assistance through CalHFA MyHome and the Dream For All shared-appreciation loan (up to $150K or 20% of the purchase price). Massachusetts, New York, and Florida also rank high with $25K-$50K in combined assistance for eligible buyers. The "best" program depends on your income, credit, and how long you plan to stay. Compare lenders by state →
Can I use gift money for down payment?
Yes! FHA, VA, USDA, and Conventional all allow gift money from family. Requirements: Gift letter stating it's a gift (not loan), Donor's bank statement showing funds, Paper trail (wire transfer or check). You can use 100% gift money for down payment on FHA/VA/USDA. Conventional requires 5% of your own funds if less than 20% down. Get pre-approved with gift funds →
What if I have student loans?
Student loans are OK! Lenders count 0.5-1% of balance as monthly payment for DTI. Example: $50K student loans = $250-500/month payment for qualification. Strategy: Get on income-driven repayment (IDR) to lower payment, or pay down balance before applying. FHA allows 50% DTI, so student loans are manageable. Compare lenders who work with student loan borrowers →
Do I have to repay down payment assistance?
It depends on the program type: Outright grants never require repayment (8% of programs). Forgivable seconds are free after a residency period of 5-15 years. Deferred-payment seconds come due when you sell, refinance, or stop occupying the home as your primary residence. Repayable seconds require monthly payments. Always read your program terms before closing. Find DPA programs in your state →
Can I buy a condo or townhouse?
Yes, with restrictions: FHA: Condo must be FHA-approved (check HUD list). VA: Condo must be VA-approved. Conventional: Condo must be Fannie Mae approved. USDA: Single-family only (no condos). Townhouses: Usually OK for all programs. Check with lender for specific condo approval. Get pre-approved for a condo purchase →
What if my state runs out of grant money?
Many states have limited funding. Strategy: Apply early in year (January-March when funding resets), Get on waitlist if funds exhausted, Check local city/county programs (separate funding), Consider employer assistance programs, Use FHA/VA with 0-3.5% down (no grant needed). Some states get additional funding mid-year. Get pre-approved now before funds run out →
📚 Related First-Time Buyer Guides
Meet the Mortgage-Info.com Editorial Team
Editorial & Research Team
The Mortgage-Info.com Editorial Team researches, writes, and maintains all content on this site. Our guides are built from publicly available data sources including Freddie Mac, Fannie Mae, FHA, VA, and lender-published rate sheets, and are reviewed regularly to keep figures and program requirements accurate and current.
EXPERTISE:
KEY ACHIEVEMENT:
Publishes and maintains 1,500+ mortgage guides and comparisons