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Loan type · figures checked October 2026

First-time buyer programs

State and local housing finance agencies offer down payment assistance, lower rates and tax credits, usually alongside an FHA, VA, USDA or conventional loan.

Down payment: Varies; help often available
Credit score: Varies
Mortgage insurance: Depends on the loan used
Best for: First-time buyers with moderate incomes

First-time buyer programs

Pros

Grants or forgivable loans for down payment and closing costs
Some offer mortgage credit certificates that reduce federal income tax

Cons

Income and price limits apply
Some assistance must be repaid if you sell or refinance early
Usually requires a homebuyer education course

Good to know

Many programs define a first-time buyer as someone who has not owned a home in the past three years.
Start with your state’s housing finance agency: see programs by state.

Mortgage calculatorSee the monthly payment with taxes, insurance and mortgage insurance

Loan rules and limits change. Confirm current terms with lenders. Not financial advice.

Frequently asked questions

Do I count as a first-time home buyer?

Often yes if you have not owned a home in the past three years, even if you owned one before. Check each program’s rules.

Questions from readers

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