First-Time Homebuyer Programs: A State-by-State Starting Point
Down payment assistance is often the first thing buyers think of when it comes to first-time buyer help, but many states offer a broader set of programs — below-market-rate loans and tax credits among them — run through state housing finance agencies (HFAs). Knowing the full landscape helps avoid leaving benefits on the table. State Housing Finance Agencies Nearly every state has its own housing finance agency offering first-time buyer programs, often layered on top of standard FHA, VA, USDA, or conventional loans rather than replacing them. These agencies typically partner with a network of approved local lenders, so applying usually means finding a lender on the state HFA's approved list rather than applying to the agency directly. Below-market-rate first mortgages Some state HFAs offer first mortgages at a lower interest rate than typical market rates, specifically for eligible first-time buyers within income and purchase price limits. This is a distinct benefit from dow...