First-Time Home Buyer Programs: How to Get Your Foot in the Door

First-Time Home Buyer Programs: How to Get Your Foot in the Door

  • Tommy Pistana
  • 11/1/22

Purchasing a home is a significant decision and one that you can’t take lightly. You want to ensure that the home you buy is the right fit for your family and meets all your needs. However, this is not the only concern you’ll have. There are several steps, tasks, and requirements involved in the process and you might get overwhelmed and worried about making an expensive mistake. 

This blog will cover some of the most valuable first-time buyer programs so you are well aware of the options available to you. 

Types of First-Time Home Buyer Programs

The costs of buying a first home can seem overwhelming at first. Luckily, there are several loan programs for assistance to those who want to take the step into homeownership. By having an understanding of how each of the programs work, you’ll be able to choose the one that best suits your needs.

Down Payment Assistance (DPA)

A down payment is the first and foremost cost of buying a home. It is a crucial requirement for most mortgages. Luckily, there are quite a few lenders that accept down payment assistance. It helps in covering your down payment costs. 


DPA Loans 

If you’ve doubts about covering your down payment, you might be eligible for a down payment assistance program via certain types of loans, which will help lower the amount for you. Some options include forgiven loans, second mortgages, and deferred payment loans. 

DPA Grants

Another possibility of getting down payment assistance is via grants. The good part is these don’t have to be repaid. However, each state has its requirements, and it’s best to check out yours for accurate details.

Government-Backed Loans 

A government-backed loan is also beneficial for qualified first-time home buyers to purchase with zero down payment. 

Tax Deductions 

You can save money on your taxes with the help of several state and federal deductions. Moreover, you can deduct the cost of interest paid during the year on loan amounts up to the above limits for a primary and one second home. These are the two most significant homeownership deductions. 

Closing Assistance

Similar to the DPA, these are private and government-sponsored programs that assist you in closing costs. These are what you pay at the end of your mortgage process. 

Federal First-Time Home Buyer Programs

When you buy a home, you can benefit from local and state government programs. These programs are available to all citizens of the U.S. listed below are some of the most known federal first-time home buyer programs:

Government Backed Loans

The good news is that lenders can offer borrowers a lower interest rate. The government insures these loans, which means they pose less risk to the lender. The government is offering three loan options as of now, and they are V.A. loans, FHA loans, and USDA loans. These enable you to get a home with a lower down payment or poor credit.

State And Local First-Time Home Buyer Programs 

Most government home buying assistance comes through state and local programs. The individual programs are different based on the locations. 

Charitable/ Non Profit 

You will be eligible for this only if you have less than the average income. These organizations can help offer you the right resources to finance a home. 

Habitat For Humanity

This global organization is well known and offers decent housing for low-income families. The volunteers help build homes for the needy, and the organization makes no profit when you close. These homes are priced economically as compared to the others in the market. 

Neighborhood Assistance Corporation Of America (NACA)

Another nationwide nonprofit that can help you get home is the Neighborhood Assistance Corporation of America (NACA). It offers education and counseling to households that are not financially stable. These loans don’t require a down payment or closing costs, nor do they see the minimum credit score. They can offer you a more personalized look at potential paths to homeownership. 

Employer-Sponsored First-Time Home Buyer Programs

Yes, your employers can also help you out with your home purchase. Many employers nowadays are adopting housing incentives that help employees cover their down payments and closing costs. You can ask your employer to provide you with a grant or a loan.

First-Time Home Buyer Loans And Grants For Students

VA and FHA loans are practical options for fresh graduates and students who are enrolled currently and wish to balance their loan repayments with a mortgage.

Work With Us

Having been recognized by numerous publications as one of the top real estate teams across the US. This diverse group of hard-working individuals focuses directly on setting their clients apart with “out of the box” marketing and an unmatched work ethic providing a next-level customer experience no matter what price point.

Follow Us on Instagram