First-time buyers have more help available than many realize, from low down payment loans to state programs offering grants or forgivable loans.
Federal and conventional options
FHA loans offer flexible credit standards with 3.5% down. Conventional programs such as HomeReady and Home Possible allow 3% down and reduced mortgage insurance. VA and USDA loans offer zero down for eligible borrowers.
State and local assistance
Every state has a housing finance agency, and many offer down payment and closing cost assistance as grants, deferred loans or forgivable second mortgages. Eligibility often depends on income, purchase price limits and homebuyer education courses.
Who counts as first-time
Most programs define a first-time buyer as someone who has not owned a primary residence in the past three years. Always verify rules with a lender or housing counselor, who can often help for free through HUD-approved agencies.
Try the numbers
Use our How Much House Can I Afford Calculator to see this in practice. With its default example (Gross annual income: $110,000; Monthly debt payments: $500; Down payment saved: $80,000), it shows estimated affordable home price: $405,818. Adjust the inputs to match your situation.
Key takeaways
- Several programs allow 0%–3.5% down.
- State housing agencies offer down payment help.
- HUD-approved counselors can guide you at low or no cost.
This article is for general education and is not personalized financial, tax or legal advice. Rules and limits change; confirm current figures with official sources such as IRS.gov, SSA.gov and StudentAid.gov, or consult a qualified professional. © 2026 FinanzCalc.