First-Time Homebuyer Programs by State

First-Time Homebuyer Programs in the Northeast

In the Northeast, first-time homebuyers can access low-rate government-backed loans and conventional mortgages, down payment assistance, and special programs for veterans, first-generation buyers and recent college graduates.

Connecticut

Several programs are offered by the Connecticut Housing Finance Authority, including low-rate government-backed loans, conventional housing finance agency (HFA) loans with reduced mortgage insurance costs, FHA 203(k) renovation loans and down payment assistance.

Maine

Low-rate mortgages with down payment and closing cost assistance are available through MaineHousing's First Home Loan Program. Veterans, first-generation homebuyers and some manufactured homebuyers may also qualify for special incentives.

Massachusetts

MassHousing offers first-time homebuyers conventional and Federal Housing Administration (FHA) mortgages, financing for purchasing and renovating a home, and down payment assistance programs. Closing credits are also available for veterans and service members.

New Hampshire

First-time homebuyers may be eligible for several programs from New Hampshire Housing, including low-rate mortgages, down payment and closing cost assistance, and reduced mortgage insurance. Incentives are also available for first-generation buyers and rehab purchases.

New Jersey

Several programs are offered by the New Jersey Housing and Mortgage Finance Agency, including HFA loans and down payment assistance. Special assistance may also be available for members of the New Jersey police and firefighter retirement system.

New York

Low-rate mortgages and down payment assistance are available through the State of New York Mortgage Agency. Other incentives are also available for veterans, recent college graduates, and buyers purchasing energy-efficient homes and manufactured homes or planning to remodel the property.

Pennsylvania

The Pennsylvania Housing Finance Authority offers mortgage programs with down payment assistance and competitive interest rates for first-time homebuyers. A special program for people with disabilities and an employer-assisted housing initiative are also available.

Rhode Island

First-time homebuyers may be eligible for several programs from Rhode Island Housing, including no-down-payment mortgages and down payment and closing cost assistance. Incentives are also available for first-generation buyers and rehab purchases.

Vermont

Several programs are offered by the Vermont Housing Finance Agency, including mortgages with competitive interest rates, down payment and closing cost assistance, a mortgage credit certificate and a grant for first-generation homebuyers.

Learn more: Down Payment Assistance Programs: How They Work

First-Time Homebuyer Programs in the Midwest

Midwestern first-time homebuyers have many loan programs to choose from, including affordable mortgages, down payment assistance and tax credits. Speciality programs are also offered for veterans, law enforcement, single parents and properties located in targeted geographic areas.

Illinois

Mortgages with low, forgivable, deferred or repayable down payments are available through the Illinois Housing Development Authority for first-time homebuyers and repeat buyers.

Indiana

The Indiana Housing and Community Authority has various down payment assistance programs for first-time buyers and a refinancing program for existing first-time homeowners. Loan options may include forgivable and deferred payment structures.

Iowa

First-time homebuyers, veterans and active service members may be eligible for several programs from the Iowa Finance Authority, including loans with competitive interest rates, down payment and closing cost assistance, and reduced mortgage insurance. Borrowers also have access to a free Iowa Title Guaranty Owner's Certificate.

Kansas

Kansas Housing offers down payment and closing cost assistance when eligible first-time homebuyers take out a conventional or government-backed mortgage through participating lenders. The assistance is structured as a forgivable loan. Displaced homemakers and current owners of manufactured homes may also qualify.

Michigan

First-time homebuyers and repeat buyers may be eligible for several programs from the Michigan State Housing Development Authority, including low-interest mortgages, down payment assistance and a mortgage credit certificate that offers a federal tax credit for mortgage interest paid each year for up to 30 years after purchase.

Minnesota

Mortgages are available for first-time homebuyers, repeat buyers and homeowners looking to refinance from the Minnesota Housing Finance Agency. Eligible buyers may also qualify for down payment and closing cost assistance.

Missouri

The Missouri Housing Development Commission offers mortgages for first-time buyers and repeat buyers that may include lower rates, down payment assistance and a mortgage credit certificate.

Nebraska

Competitive-rate mortgages and down payment assistance are available through the Nebraska Investment Finance Authority for first-time homebuyers and repeat buyers. Veterans and buyers who lost a home due to divorce, a natural disaster or a forced job relocation may also qualify. Buyers looking to purchase a home in a designated target area may also be eligible.

North Dakota

Several programs are offered by the North Dakota Finance Agency for first-time homebuyers, people purchasing a home in designated target areas, single parents, military members and their spouses, and buyers who are disabled or 65 and older. Eligible buyers may also qualify for down payment and closing cost assistance.

Ohio

Conventional and government-backed home loans are available from the Ohio Housing Finance Agency, along with down payment assistance and a mortgage tax credit. Veterans, health care workers, first responders, teachers, recent college graduates and repeat buyers may also be eligible for incentives, like discounted interest rates.

South Dakota

First-time homebuyers and repeat buyers may be eligible for down payment assistance with a mortgage from the South Dakota Housing Development Authority in the form of a deferred loan.

Wisconsin

Conventional, government-backed and renovation loans are available through the Wisconsin Housing and Economic Development Authority. Eligible buyers may qualify for down payment assistance and reduced rates.

Learn more: Tips for First-Time Homebuyers: What You Need to Know

First-Time Homebuyer Programs in the South

First-time homebuyers in the South may qualify for reduced-rate mortgages and assistance with down payments and closing costs. There are also programs for first responders, educators, health care workers, veterans, and people with disabilities or student loan debt.

Alabama

Several programs are offered by the Alabama Housing Finance Association, including mortgages, down payment and closing cost assistance, and mortgage credit certificates.

Arkansas

Low-rate mortgages and down payment assistance are available through the Arkansas Development Finance Authority.

Delaware

The Delaware State Housing Authority offers conventional and government-backed mortgages for eligible first-time and repeat homebuyers, plus down payment assistance and a mortgage credit certificate.

District of Columbia

First-time and repeat homebuyers in the Washington, D.C., area can work with the DC Housing Finance Agency to get below-market rate mortgages, deferred repayable loans and assistance with down payments and closing costs. D.C. government employees are also eligible for incentives.

Florida

Several programs are offered by the Florida Housing Finance Corp. for first-time buyers, including low-rate mortgages and assistance with down payments and closing costs. First responders, veterans and active-duty service members may also be eligible for assistance.

Georgia

Competitive-rate and low-rate mortgages with down payment assistance are available through the Georgia Department of Community Affairs for first-time homebuyers and veterans and members of the military. Additional incentives are also available for first responders, health care workers, educators and buyers that have a family member with a disability.

Kentucky

The Kentucky Housing Corp. offers conventional and government-backed loans for first-time buyers and eligible repeat buyers, plus programs offering down payment and closing assistance.

Louisiana

First-time homebuyers may be eligible for several programs from the Louisiana Housing Corp., including low-rate conventional and government-backed loans, down payment and closing cost assistance, and a mortgage credit certificate.

Maryland

Several programs are offered by the Maryland Department of Housing and Community Development, including low-rate mortgages, down payment assistance and a mortgage credit certificate. Special programs are also available for Montgomery County borrowers, homes that need financing for repairs or modernization when purchased, homebuyers with disabilities or those with student debt.

Mississippi

Competitive rate mortgages, down payment assistance, mortgage tax credits and other programs are available through the Mississippi Home Corp. for eligible homebuyers. Teachers may also qualify for grant funds to assist with mortgages.

North Carolina

The North Carolina Housing Finance Agency offers mortgages and down payment assistance to first-time homebuyers, eligible repeat buyers, veterans and individuals buying in certain geographic areas. Community homebuying programs are also available for low- to moderate-income borrowers with low-cost financing and down payment assistance.

Oklahoma

The Oklahoma Housing Finance Agency offers financing that first-time homebuyers, teachers, first responders and Oklahoma state employees can put toward a down payment or closing costs. Down payment assistance may be forgivable as long as the homebuyer remains in Ohio for a certain period of time.

South Carolina

South Carolina Housing offers several programs, including down payment and closing cost assistance and fixed-rate loans for eligible teachers, health care workers, first responders, veterans and active-duty military, as well as buyers in previously underserved counties and low- to moderate-income borrowers. Conventional and government-backed loans with forgivable down payment assistance, financing for qualifying public housing renters and mortgage credit certificates are also available.

Tennessee

The Tennessee Housing Development Agency offers several programs for eligible first-time and repeat buyers, including fixed-rate mortgages, down payment and closing cost assistance, and loans for manufactured homes. Special incentives are also available for qualified military and first responders.

Texas

First-time homebuyers, repeat buyers and existing homeowners may be eligible for several programs from the Texas State Affordable Housing Corp., including fixed-rate mortgages, down payment assistance and mortgage credits for first responders, teachers, veterans and low- and moderate-income households.

Virginia

Virginia Housing offers conventional and government-backed mortgage options that can be combined with down payment and closing cost grants and down payment assistance loans.

West Virginia

Low-rate mortgages that let borrowers finance up to 100% of the home's purchase price with down payment and closing cost assistance are available through the West Virginia Housing Development Fund. Borrowers in certain geographic areas and eligible veterans may also qualify for special financing.

First-Time Homebuyer Programs in the West

In the West, first-time homebuyers may be eligible for low interest rates, down payment assistance and other loan programs. Plus, some states, like Alaska, offer financing for unique properties.

Alaska

Several programs are offered by the Alaska Housing Finance Corp. for eligible first-time buyers, veterans and other types of buyers, including reduced-rate loans, loans for unique properties that don't qualify for standard financing, rural properties, non-owner occupied rental homes, manufactured homes and refinancing loans.

Arizona

The Arizona Industrial Development Authority offers fixed-rate mortgages, plus down payment and closing cost assistance for first-time homebuyers.

California

Several programs are offered by the California Housing Finance Agency, including government-backed and conventional loans with deferred down payment assistance.

Colorado

First-time homebuyers may be eligible for several programs from the Colorado Housing and Finance Authority, including mortgage loans and grants, plus second mortgage loans for down payment and closing cost assistance.

Hawaii

The Hawaii Housing Finance & Development Corp. (HHFDC) offers project-based special financing and incentives for eligible homebuyers and people working in professions facing critical shortages, including health care workers, educators, law enforcement and agriculture field workers. Other low-cost housing opportunities for first-time buyers and qualified residents include a deed restriction program that allows the HHFDC to buy back a unit to keep it affordable or the HHFDC to own a percentage of a unit's net appreciation in exchange for below-market pricing.

Idaho

Several programs are offered by the Idaho Housing and Finance Association for first-time buyers and other eligible homebuyers, including HFA loans, loans for veterans and assistance for down payments and closing costs.

Montana

The Montana Housing program offers low-rate conventional and government-backed loans, plus down payment and closing cost assistance for first-time buyers. Other programs include a veterans loan program, a mortgage credit certificate, an 80% combined program that eliminates the need for mortgage insurance, and special programs created for homebuyers who qualify to receive down payment assistance from nonprofits, like Habitat for Humanity.

Nevada

Several programs are offered by the Nevada Housing Division, including competitive-rate mortgages, down payment and closing assistance, and special limited-time homebuyer loans for teachers.

New Mexico

Low-rate loans and down payment and closing cost assistance programs are available through the New Mexico Mortgage Finance Authority to first-time homebuyers and repeat buyers. Some homebuyers may also qualify for forgivable down payment loans.

Oregon

The Oregon Housing and Community Services offers several programs for first-time homebuyers, veterans and first-generation buyers, including low-interest-rate mortgages and assistance for down payments and closing costs.

Utah

Several programs are offered by the Utah Housing Corp., including conventional and government-backed home loans, down payment assistance, grants for veterans and law enforcement, and incentive funds for first-time buyers to use for down payments, closing costs or a permanent interest rate buy down.

Washington

The Washington State Housing Finance Commission offers several programs for first-time homebuyers and other qualified buyers, including low-interest home loans, rate buydown financing and down payment assistance.

Wyoming

First-time homebuyers and other eligible buyers may qualify for several programs from the Wyoming Community Development Authority, including affordable mortgages, down payment and closing cost assistance, "single close" purchase and renovation loans, HFA loans and mortgage credit certificates.

Learn more: The Ultimate Guide for First-Time Homebuyers

Nationwide First-Time Homebuyer Loans

First-time homebuyers may not need to use a state program to get a loan. Conventional loans and government-backed financing are also available from traditional financial institutions and online lenders. Here's what to know about the different types of mortgages.

Conventional Loans

Conventional loans, which are mortgages that aren't insured by a government agency, are the most popular type of home loan. Most conventional loans are originated and serviced by private mortgage lenders, such as banks, credit unions and online mortgage lenders.

First-time borrowers with strong credit and a low debt-to-income ratio (DTI) may be able to get competitive interest rates. But you'll need to come up with a down payment of at least 3% and be prepared to have lenders take a deep dive into your finances.

FHA Loans

FHA loans are government-backed mortgages that offer low down payments. Borrowing criteria is more relaxed than conventional loans, making FHA loans ideal for first-time homebuyers. They may also be a good choice if your credit isn't in tip-top shape or you only have minimal cash savings to buy a home.

There are different types of FHA loans, including the FHA 203(k) loan, which can be used to finance repair and rehabilitation of a single-family home. But FHA loans do come with some drawbacks. You can't use an FHA loan to buy a home that's not your primary residence.

And unless you put down 10%, you'll need to pay mortgage insurance premiums for the life of the loan.

VA Loans

VA loans are low-cost mortgages available through the U.S. Department of Veterans Affairs (VA). They're only available to certain U.S. service members, veterans and surviving spouses. They typically have lower interest rates and down payment requirements than conventional mortgages.

Over 90% of traditional VA purchase loans are made with 0% down, according to the VA. But VA loans tend to have more fees and restrictions than conventional loans. For instance, you can only use a VA loan for a primary residence, and you'll have to pay a VA funding fee at closing.

Still, if you meet the military eligibility requirement, a VA loan may be a good choice to buy your first home. Lenders have some discretion over approval criteria and they can set their own interest rates and some fees.

Learn more: Pros and Cons of a VA Loan

USDA Loans

USDA loans are low-interest mortgage and home improvement loans backed by the U.S. Department of Agriculture (USDA). USDA loans require no money down and are designed to help buyers with lower-than-average incomes and less-than-ideal credit get a mortgage.

But USDA loans often come with stricter borrower requirements than other types of loans.

You must be able to demonstrate a stable income, yet your income can't exceed the local moderate-income level. The home you want to buy needs to be your primary residence and located within an eligible rural or suburban area. And, you must be a U.S. citizen or permanent resident to qualify.

Learn more: First-Time Homebuyers: How to Qualify for Loans, Programs and Grants

The Bottom Line

First-time homebuyers typically have many state programs to consider for help with buying their dream house—from affordable mortgage options to down payment assistance loans. But in the end, the financing program that's the best fit for you will depend largely on your down payment, DTI and credit score. The stronger your score, the more likely you're going to get approved for a mortgage with a competitive interest rate. You can request copies of your credit report and check your FICO^® Score^Θ for free anytime with Experian to see where you stand and help you know how to improve your credit if necessary.