Every state in the US offers assistance programs for first-time home buyers. These include down payment grants, low-interest loans, tax credits, and favorable mortgage terms that can save you tens of thousands of dollars.
Table of Contents
Federal First-Time Home Buyer Programs
Before looking at state programs, know what’s available federally:
| Program | Down Payment | Credit Score | Key Benefit |
|---|---|---|---|
| Conventional 97 | 3% | 620+ | Low down payment, no location restrictions |
| FHA Loan | 3.5% | 580+ (500 with 10% down) | Flexible credit requirements |
| VA Loan | 0% | 620+ (no official minimum) | No down payment, no PMI (veterans/military) |
| USDA Loan | 0% | 640+ | No down payment (rural/suburban areas) |
| FHA 203(k) | 3.5% | 620+ | Includes renovation costs in mortgage |
| Good Neighbor Next Door | 50% off list price | Varies | Teachers, law enforcement, firefighters, EMTs in HUD areas |
State-by-State Down Payment Assistance Programs
| State | Program Name | Assistance Amount | Type |
|---|---|---|---|
| Alabama | Step Up | Up to $10,000 | Forgivable loan |
| Alaska | AHFC First Home | Up to $10,000 | Low-interest loan |
| Arizona | Home Plus | Up to 5% of loan amount | Forgivable after 3 years |
| Arkansas | ADFA Down Payment | Up to $15,000 | Second mortgage (0% interest) |
| California | CalHFA MyHome | Up to 3.5% of price | Deferred loan |
| Colorado | CHFA DPA | Up to $25,000 | Second mortgage or grant |
| Connecticut | CHFA DAP | Up to $20,000 | Low-interest loan |
| Delaware | DSHA Preferred Plus | 2-5% of loan amount | Forgivable after 5 years |
| Florida | FL Assist | Up to $10,000 | 0% interest second mortgage |
| Georgia | Georgia Dream | Up to $10,000 | 0% interest, deferred loan |
| Hawaii | HHFDC | Up to $15,000 | Deferred silent second |
| Idaho | IHFA DPA | Up to 6% of loan amount | Second mortgage |
| Illinois | IHDA DPA | Up to $10,000 | Forgivable after 10 years |
| Indiana | IHCDA Next Home | Up to 6% of loan amount | Forgivable after 2 years |
| Iowa | IFA FirstHome Plus | Up to $2,500 | Grant |
| Kansas | KHRC First-Time | Up to $5,000 | Grant |
| Kentucky | KHC DPA | Up to $10,000 | Forgivable after 5 years |
| Louisiana | LHC DPA | Up to $55,000 | Soft second mortgage |
| Maine | MaineHousing First Home | $5,000 | Grant |
| Maryland | Maryland Mortgage DPA | Up to $5,000 | 0% deferred loan |
| Massachusetts | MassHousing DPA | Up to $50,000 | 0% interest, 15-year deferred |
| Michigan | MSHDA DPA | Up to $10,000 | 0% interest loan |
| Minnesota | Start Up | Up to $17,000 | Deferred loan |
| Mississippi | Smart6 | Up to 6% of loan | Forgivable after 10 years |
| Missouri | MHDC First Place | Up to 5% of loan amount | Forgivable or second mortgage |
| Montana | MBOH DPA | Up to $15,000 | Second mortgage |
| Nebraska | NFA First Home | Up to $10,000 | Grant |
| Nevada | Home Is Possible | Up to 5% of loan amount | Forgivable after 3 years |
| New Hampshire | NHHFA Home Flex | Up to $20,000 | Second mortgage |
| New Jersey | NJHMFA DPA | Up to $15,000 | Forgivable after 5 years |
| New Mexico | MFA First Home | Up to $8,000 | Repayable second |
| New York | SONYMA DPA | Up to $15,000 | Grant or second mortgage |
| North Carolina | NC Home Advantage | Up to 5% of loan amount | Forgivable after 15 years |
| North Dakota | NDHFA DPA | Up to $16,000 | Grant |
| Ohio | OHFA DPA | 2.5% or 5% of price | Forgivable after 7 years |
| Oklahoma | OHFA DPA | Up to 3.5% of price | Second mortgage |
| Oregon | OHCS DPA | Up to $15,000 | Forgivable after 5 years |
| Pennsylvania | PHFA DPA | Up to $10,000 | 0% interest loan |
| Rhode Island | RIHousing Extra Assistance | Up to $17,500 | Forgivable |
| South Carolina | SC Housing DPA | Up to 6% of amount | Forgivable second |
| South Dakota | SDHDA DPA | Up to 5% of loan | Repayable second |
| Tennessee | THDA Great Choice | Up to $15,000 | Forgivable after 10 years |
| Texas | TDHCA My First Texas Home | Up to 5% of loan | Grant or second mortgage |
| Utah | UHC FirstHome | Up to 6% of loan amount | Second mortgage |
| Vermont | VHFA ASSIST | Up to $15,000 | 0% deferred loan |
| Virginia | VHDA DPA | Up to $8,000 | Grant |
| Washington | WSHFC Home Advantage | Up to $10,000 | 0% deferred second |
| West Virginia | WVHDF Movin’ Up | Up to $20,000 | Forgivable after 10 years |
| Wisconsin | WHEDA DPA | Up to 6% of loan amount | Second mortgage |
| Wyoming | WCDA DPA | Up to $10,000 | Second mortgage |
Types of Assistance Programs
| Type | How It Works | Repayment |
|---|---|---|
| Grant | Free money for down payment | None (truly free) |
| Forgivable loan | Loan forgiven after living in home for set period (5-15 years) | None if you stay long enough |
| Deferred loan | No payments due until you sell, refinance, or pay off mortgage | Due at sale/refi |
| Low-interest second mortgage | Small second loan with below-market rate | Monthly payments required |
| Matched savings (IDA) | Your savings matched (often 2:1 or 3:1) | None |
Income and Price Limits
Most programs have income and purchase price limits:
Typical Income Limits
| Area Type | Typical Income Limit | Example |
|---|---|---|
| Low-cost area | $70,000-$90,000 | Rural Kansas |
| Moderate-cost area | $90,000-$120,000 | Suburban Ohio |
| High-cost area | $120,000-$180,000+ | NYC suburbs, California metros |
Limits vary significantly by county and family size. Check your specific state/county program.
Typical Purchase Price Limits
| Area Type | Typical Price Limit |
|---|---|
| Low-cost rural | $250,000-$350,000 |
| Moderate metro | $350,000-$450,000 |
| High-cost metro | $500,000-$750,000+ |
Additional First-Time Buyer Benefits
Mortgage Credit Certificate (MCC)
Available in most states, an MCC gives you a federal tax credit equal to 20-50% of your mortgage interest paid annually (up to $2,000/year):
| Annual Mortgage Interest | MCC Rate | Annual Tax Credit |
|---|---|---|
| $12,000 | 25% | $2,000 (capped) |
| $8,000 | 25% | $2,000 |
| $6,000 | 25% | $1,500 |
This credit directly reduces your federal taxes and lasts the entire life of the loan.
Homebuyer Education Discounts
Many programs offer 0.25-0.50% interest rate reductions for completing a homebuyer education course.
How to Apply for First-Time Buyer Programs
- Check eligibility — Income limits, purchase price limits, credit score requirements
- Complete homebuyer education — Required by most programs (online courses available)
- Find an approved lender — State programs often require using an approved lender
- Apply for the mortgage + assistance together — The DPA is processed alongside your main mortgage
- Close on your home — Assistance appears as a credit at closing
First-Time Buyer Cost Savings Example
Without Assistance
| Cost | Amount |
|---|---|
| Home price | $300,000 |
| Down payment (5%) | $15,000 |
| Closing costs (3%) | $9,000 |
| Total cash needed | $24,000 |
With State/Federal Assistance
| Cost | Amount |
|---|---|
| Home price | $300,000 |
| Down payment (3.5% FHA) | $10,500 |
| State DPA grant | -$10,000 |
| Seller concession (3%) | -$9,000 |
| Total cash needed | $1,500 |
Related: Average Down Payment | Mortgage Affordability Calculator | Mortgage Payment Calculator | How Much Home Can I Afford?
