first time homeowners program comparison and guide

What these programs offer

A first time homeowners program can reduce barriers to buying by pairing lower down payments with below-market rates, closing cost help, and homebuyer education. Eligibility often considers income, purchase price caps, and occupancy, while lenders still review credit, debt-to-income, and savings for reserves.

Popular options compared

Common choices include FHA loans with 3.5% down and upfront mortgage insurance; Conventional 97 with 3% down and cancelable PMI; VA loans offering 0% down for eligible veterans; USDA loans with 0% down in qualifying rural areas; and state housing finance agency programs that layer grants or deferred second mortgages. Each can suit different budgets and timelines.

• Minimum down: 0% to 3.5%, depending on program.
• Mortgage insurance: varies; some permanent, some cancelable.
• Location and income: USDA and many state options have limits.
• Fees and funding fees: compare APR, not just rate.
• Education and occupancy: usually primary residence and a counseling class.

How to choose and apply

Get preapproved with two or three lenders, ask about state DPA, and compare total five-year cost. Verify whether assistance is forgivable, and confirm timelines for appraisal and closing.