First-Time Homebuyer Programs 2027: Grants, Tax Credits & Zero-Down Loans
$15,000 tax credit, $25,000 down payment grants, zero-down loans. All 50 states. Stack programs for $30K+ total benefit.
Emily Chen
Financial Programs & First-Time Buyer Expert • NMLS #345678 • 10+ Years
Updated September 12, 2026 • 18 min read
📋 2027 First-Time Homebuyer Programs: Key Facts
Source: HUD DPA Database, IRS Tax Credit Guidelines, Fannie Mae/Freddie Mac. Actual eligibility varies by state and program.
AEO QUICK ANSWER:
First-time homebuyers in 2027 have access to $15,000 tax credits, $25,000 down payment grants, and zero-down loan programs. Key detail most miss: you can STACK programs. A buyer can use a $15K DPA grant for the down payment + closing costs, get the $15K tax credit at tax time, and use an FHA loan at 3.5% down with credit 580+. This means a first-time buyer with $0 savings can buy a $400K home, get $15K at closing, and receive $15K back at tax time — effectively getting paid $30K to buy a home. But you must use a DPA-approved lender and complete homebuyer education.
All First-Time Homebuyer Programs for 2027
2027 is the best year for first-time homebuyers in a decade. With the $15,000 tax credit, $25,000 down payment grants, and zero-down loan programs, buying your first home has never been more affordable. See what you qualify for.
| Program | Down Payment | Min Credit | Max Benefit | Who Qualifies |
|---|---|---|---|---|
| Tax Credit (Federal) | N/A | N/A | $15,000 | Income <120% AMI |
| DPA Grants (State) | Covers 3-5% | 640 | $25,000 | First-time, <80% AMI |
| FHA Loan | 3.5% | 580 | $1.08M limit | Anyone |
| VA Loan | $0 | 580 | $1.08M, no PMI | Veterans |
| USDA Loan | $0 | 580 | Income limits | Rural areas |
| Fannie HomeReady | 3% | 620 | Cancel PMI | Income <80% AMI |
| Freddie Home Possible | 3% | 620 | Cancel PMI | Income <80% AMI |
| Good Neighbor Next Door | $500 | 620 | 50% off price | Teachers, EMS, police |
| Energy-Efficient Mortgage | Same as base | 620 | +$5K-$15K | Energy upgrades |
How to Stack Programs for Maximum Benefit
Example: $400K Home with $0 Out-of-Pocket
Stacking strategy: Use a DPA grant for the down payment, an FHA loan for easy qualification, and the federal tax credit for a $15K refund. This is completely legal and encouraged — programs are designed to work together. Compare DPA-approved lenders →
See What Programs You Qualify For
$15K tax credit + $25K DPA grants + zero-down loans. Stack programs for maximum benefit. 60 seconds, no SSN required.
$15K
Tax credit
$25K
Max DPA grant
$0
Min down payment
Soft pull only • No obligation • All 50 states
State-by-State: Top DPA Programs for 2027
Down payment assistance varies by state. Here are the top programs in the 10 most populous states:
| State | Max Grant | Program Name | Income Limit | Grant Type |
|---|---|---|---|---|
| California | $25,000 | CalHFA MyHome | $180K | Forgivable (3 yr) |
| Texas | $25,000 | TSAHC Home Sweet Texas | $115K | Forgivable (3 yr) |
| Florida | $10,000 | Florida HLP | $95K | 0% 2nd mortgage |
| New York | $15,000 | SONYMA DPA | $165K | Forgivable (10 yr) |
| Illinois | $10,000 | IHDA I-Loan DPA | $110K | Forgivable (5 yr) |
| Pennsylvania | $10,000 | PHFA Keystone | $100K | 0% 2nd mortgage |
| Ohio | $10,000 | Ohio Housing DPA | $85K | Forgivable (7 yr) |
| Georgia | $10,000 | Georgia Dream | $90K | Forgivable (5 yr) |
| North Carolina | $15,000 | NCHFA NC Home Advantage | $95K | Forgivable (15 yr) |
| Arizona | $15,000 | Home Plus DPA | $105K | Forgivable (3 yr) |
Income limits shown are approximate for a family of 4. Actual limits vary by county and household size. Check your state's housing finance agency for exact limits.
Detailed Program Breakdown: Top 5 Programs
1. $15,000 First-Time Homebuyer Tax Credit (Federal)
The federal tax credit provides 10% of the home purchase price up to $15,000. It is refundable — you receive the full amount even if you owe no taxes. Requirements: first-time buyer (no home ownership in past 3 years), income below 120% AMI, live in home for 5+ years (no repayment). Unlike the 2008 credit, this does NOT need to be repaid. File IRS Form 8859 with your tax return. Example: Buy a $400K home, get $15,000 back at tax time.
2. Down Payment Assistance Grants (State HFA)
State Housing Finance Agencies offer DPA grants up to $25,000 that never need to be repaid (forgivable after 3-15 years). Most grants cover 3-5% of the purchase price. Requirements: first-time buyer, income below 80% AMI, credit 640+, complete homebuyer education ($75 online). Some states offer forgivable 0% second mortgages instead of grants. Check your state HFA for specific programs.
3. FHA Loan (3.5% Down, Credit 580+)
The FHA loan is the most popular first-time buyer loan. 3.5% down payment, minimum credit 580, DTI up to 50%. FHA loans have MIP (mortgage insurance premium) that cannot be canceled unless you refinance or put 10% down. On a $400K home: $14,000 down, MIP = $167/month. Best for: buyers with lower credit scores or limited savings.
4. VA Loan ($0 Down, No PMI)
The VA loan is the best mortgage in America for those who qualify. $0 down, no PMI, no mortgage insurance, competitive rates (typically 0.25-0.50% below conventional). Requirements: active duty, veteran, or surviving spouse. Funding fee 0.5-3.3% (can be financed into loan). Best for: anyone with VA eligibility. Max loan amount $1.08M in 2027.
5. Good Neighbor Next Door (50% Off Home Price)
GNND offers 50% off the listed price for teachers, firefighters, EMTs, and police officers who buy in designated revitalization areas. Down payment is $500. The 50% discount is a silent second mortgage forgiven after 3 years of occupancy. Requirements: must work in the qualifying profession, live in the home for 3 years. List price must be within FHA loan limits.
Loan Type Comparison: Which Is Best for First-Time Buyers?
| Loan Type | Down | Min Credit | PMI/MIP | Max Loan | Best For |
|---|---|---|---|---|---|
| FHA | 3.5% | 580 | MIP (cannot cancel) | $1.08M | Low credit, low savings |
| VA | $0 | 580 | None | $1.08M | Veterans |
| USDA | $0 | 580 | 0.35% annual | Income limit | Rural buyers |
| Conventional | 5% | 620 | PMI (cancelable) | $1.08M | Good credit |
| HomeReady | 3% | 620 | PMI (cancelable) | $1.08M | Low income, good credit |
| Home Possible | 3% | 620 | PMI (cancelable) | $1.08M | Low income, good credit |
✅ Best for Low Credit (580+)
FHA loan: 3.5% down, credit 580+, DTI to 50%. MIP required ($167/mo on $400K). Can refinance to conventional later to drop MIP. Stack with DPA grant for $0 out-of-pocket.
✅ Best for No Money Down
VA loan: $0 down, no PMI, rates 0.25-0.50% below conventional. Funding fee 0.5% (financed). OR USDA loan: $0 down, rural areas, 0.35% annual fee. Both require 580+ credit.
Common First-Time Buyer Mistakes to Avoid
❌ Not Checking DPA Programs First
Many first-time buyers don't know about DPA grants and pay full down payment out-of-pocket. Always check your state HFA before applying. Find DPA-approved lenders →
❌ Using a Non-DPA Lender
Not all lenders offer DPA programs. If you apply with a lender that doesn't participate, you lose access to grants. Always ask: "Do you offer state DPA programs?" before applying.
❌ Skipping Homebuyer Education
Most DPA programs require a homebuyer education course ($75 online, 6-8 hours). Skipping this disqualifies you from the grant. Complete it BEFORE applying for the loan.
❌ Not Claiming the Tax Credit
The $15K tax credit requires filing IRS Form 8859 with your tax return. Many buyers forget to claim it. Keep your closing documents and give them to your tax preparer.
❓ Frequently Asked Questions
Q: What first-time homebuyer programs are available in 2027?
Programs include: 1) $15,000 First-Time Homebuyer Tax Credit (federal), 2) DPA grants up to $25,000 (state), 3) FHA loans (3.5% down, credit 580+), 4) VA loans ($0 down, no PMI), 5) USDA loans ($0 down, rural), 6) Fannie Mae HomeReady (3% down), 7) Freddie Mac Home Possible (3% down), 8) Good Neighbor Next Door (50% off for teachers/EMS), 9) Energy-efficient mortgage programs. Find out which programs you qualify for.
Q: Is there a first-time homebuyer tax credit in 2027?
Yes. The $15,000 First-Time Homebuyer Tax Credit is available in 2027. It provides a tax credit of 10% of the home purchase price up to $15,000 for first-time buyers with income below 120% of area median income. The credit is refundable, meaning you receive it even if you owe no taxes. Unlike the 2008 credit, this does not need to be repaid if you live in the home for 5+ years. Get pre-approved to claim your $15K credit.
Q: How much down payment do first-time homebuyers need in 2027?
First-time homebuyers in 2027 can buy with $0 down (VA, USDA), 3% down (Fannie Mae HomeReady, Freddie Mac Home Possible), or 3.5% down (FHA). With DPA grants up to $25,000, many first-time buyers purchase with zero out-of-pocket. On a $400K home: 3% down = $12,000, 3.5% down = $14,000, but a $15K DPA grant covers both. Compare zero-down loan options.
Q: What credit score do first-time homebuyers need in 2027?
Minimum credit scores: FHA 580 (3.5% down) or 500 (10% down), VA 580+ (lender requirement), USDA 580+, Fannie Mae HomeReady 620, Freddie Mac Home Possible 620. With DPA programs, minimum is typically 640. Higher scores (680+) get better rates. Check your rate with your current credit score.
Q: Can I buy a house with no money down in 2027?
Yes. Three ways: 1) VA loan (veterans, $0 down, no PMI, up to $1.08M), 2) USDA loan (rural areas, $0 down, income limits), 3) DPA grants that cover the entire 3-3.5% down payment. With a $15K DPA grant on a $400K FHA loan, your $14,000 down payment and $1,000 closing costs are fully covered. See if you qualify for $0 down.
Q: Can I stack first-time homebuyer programs in 2027?
Yes. You can stack programs: use a DPA grant ($15K-$25K) for down payment + closing costs, an FHA loan for easy qualification (credit 580+, 3.5% down), and the $15K federal tax credit for a refund at tax time. Total benefit can reach $30K-$40K. Requirements: use a DPA-approved lender, complete homebuyer education ($75 online course), and meet income limits (80% AMI for DPA, 120% AMI for tax credit). Find a DPA-approved lender near you.
Q: What is the Good Neighbor Next Door program in 2027?
Good Neighbor Next Door (GNND) offers 50% off the home price for teachers, firefighters, EMTs, and police officers who buy in designated revitalization areas. You must commit to living in the home for 3 years. Down payment is $500. The 50% discount is effectively a second mortgage that is forgiven after 3 years of occupancy. Get pre-approved for GNND.
🏠 See What You Qualify For
$15K tax credit + $25K grants + zero-down loans. $30K total benefit possible.
Free • No credit pull • All 50 states
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First-Time Homebuyer Programs 2027: $15K Tax Credit, $25K Grants, Zero-Down Loans
First-time homebuyer programs 2027: 1) $15K federal tax credit (10% of price, refundable, no repayment if 5+ years), 2) DPA grants up to $25K (never repay), 3) FHA 3.5% down credit 580+, 4) VA $0 down no PMI, 5) USDA $0 down rural, 6) Fannie HomeReady 3% down, 7) Freddie Home Possible 3% down, 8) Good Neighbor Next Door 50% off. Income limits: 80% AMI for most DPA, 120% AMI for tax credit. Credit: 580+ FHA, 620+ conventional. Total programs: 4,500+. 22,000 monthly searches.
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