Buying your first home doesn't have to be financially overwhelming. Numerous federal, state, and local programs exist to help first-time home buyers overcome the biggest barriers to homeownership, including down payment assistance, reduced interest rates, and closing cost help.
2025 Update
First-time home buyer programs have expanded significantly in 2025, with increased funding for down payment assistance and new programs targeting middle-income buyers.
First-Time Home Buyer Programs at a Glance
FHA Down Payment
Minimum down payment
VA/USDA Loans
No down payment required
Down Payment Help
Average assistance available
Local Programs
Nationwide assistance
Federal First-Time Home Buyer Programs
FHA Loans
Federal Housing Administration
✅ Benefits
- • Down payment as low as 3.5%
- • Credit scores as low as 580
- • Flexible debt-to-income ratios
- • Gift funds allowed for down payment
- • Assumable mortgages
📋 Requirements
- • Primary residence only
- • Mortgage insurance required
- • Property must meet FHA standards
- • Loan limits vary by area
- • Steady employment history
VA Loans
Veterans Affairs
✅ Benefits
- • 0% down payment required
- • No private mortgage insurance
- • Competitive interest rates
- • No prepayment penalties
- • Assumable mortgages
📋 Requirements
- • Military service required
- • Certificate of Eligibility needed
- • VA funding fee applies
- • Primary residence only
- • Property must meet VA standards
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Frequently Asked Questions
What qualifies as a first-time home buyer?
Generally, you're considered a first-time buyer if you haven't owned a home in the past 3 years. Some programs use 2 years. Single parents and displaced homemakers may also qualify.
How much down payment assistance can I get?
Down payment assistance varies widely by program and location. Typical assistance ranges from $2,500 to $25,000, but some high-cost areas offer up to $100,000 or more.
Do I have to pay back down payment assistance?
It depends on the program type. Grants don't need to be repaid. Deferred payment loans have no monthly payments and may be forgiven after 5-10 years.
Can I combine multiple first-time buyer programs?
Yes, many programs can be combined. For example, you might use an FHA loan with state down payment assistance, or combine federal and local programs.
What credit score do I need for first-time buyer programs?
Credit score requirements vary by program. FHA loans require 580+ for 3.5% down, VA loans have no minimum, USDA loans typically need 640+, and conventional loans usually require 620+.
How long does it take to get approved for first-time buyer programs?
Pre-approval typically takes 1-3 days. Full approval after finding a home takes 30-45 days. Some state programs may add 1-2 weeks for down payment assistance processing.
Are there income limits for first-time buyer programs?
Most programs have income limits based on area median income (AMI). Limits typically range from 80% to 120% of AMI, varying by location and family size.
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