First-Time Homebuyer Programs and Grants

1. FHA Loans

The Federal Housing Administration (FHA) loan is one of the most popular options for first-time buyers. It requires a lower down payment and has more flexible credit requirements.

• Down Payment: As low as 3.5%
• Credit Score Requirement: Typically 580+ (or 500 with a 10% down payment)
• Best For: Buyers with lower credit scores or smaller down payments

2. VA Loans

The Veterans Affairs (VA) loan is available to active-duty service members, veterans, and eligible spouses. This loan offers excellent benefits, including no down payment and no private mortgage insurance (PMI).

• Down Payment: None required
• Credit Score Requirement: Varies by lender, typically 620+
• Best For: Military personnel and veterans

3. USDA Loans

The United States Department of Agriculture (USDA) loan helps buyers in eligible rural and suburban areas purchase homes with no down payment.

• Down Payment: None required
• Credit Score Requirement: Typically 640+
• Best For: Buyers in rural or suburban areas with moderate to low income

4. Conventional 97 Loan

This Fannie Mae and Freddie Mac-backed loan allows first-time buyers to put down just 3%.

• Down Payment: 3%
• Credit Score Requirement: Typically 620+
• Best For: Buyers with good credit who want a low down payment option

5. State and Local First-Time Homebuyer Programs

Many states and cities offer their own first-time homebuyer assistance programs, including down payment assistance, closing cost grants, and tax credits.

• Down Payment Assistance: Varies by location
• Credit Score Requirement: Varies by program
• Best For: Buyers looking for additional financial help

6. Good Neighbor Next Door Program

This HUD program offers a 50% discount on homes for teachers, law enforcement officers, firefighters, and emergency medical technicians who buy homes in revitalization areas.

• Down Payment: As low as $100
• Credit Score Requirement: Varies by lender
• Best For: Eligible public service professionals

7. First-Time Homebuyer Grants

Grants provide free money to help cover down payments and closing costs. Some national and state-level programs include:

• National Homebuyers Fund (NHF) – Offers up to 5% of the loan amount as a grant.
• Bank-Sponsored Grants – Many banks offer first-time buyer incentives.

Final Thoughts

Exploring these first-time homebuyer programs and grants can make homeownership more affordable and accessible. Before choosing a loan, research your eligibility and speak with a mortgage professional to find the best option for your needs.

Need help navigating your home-buying journey? Contact me today for expert guidance!