What first-time homebuyer programs and grants exist?
Top first-time buyer programs for 2024 include FHA loans (3.5% down, 580 credit), VA loans (0% down for veterans), USDA loans (0% down in rural areas), Fannie Mae HomeReady (3% down), and Freddie Mac Home Possible (3% down). State HFA programs add forgivable grants of 3-5% of the loan, and Good Neighbor Next Door gives 50% off to teachers and first responders.
In This Guide:
1. Federal Low-Down-Payment Loans
FHA loans require just 3.5% down with a 580+ credit score and have a 2024 loan limit of $498,257 in most areas. VA loans offer 0% down with no PMI for active military, veterans, and surviving spouses; borrowers with full entitlement face no loan limit, while partial-entitlement loans track the 2024 conforming limit of $766,550. USDA loans provide 0% down financing in eligible rural and suburban areas for households under 115% of area median income, with a 1% guarantee fee financed into the loan. Fannie Mae HomeReady allows 3% down with cancellable PMI and accepts non-occupant co-borrowers. Freddie Mac Home Possible matches that at 3% down with flexible income sources.
- Pull your credit score from AnnualCreditReport.com
- Check VA eligibility with your DD-214
- Verify your address on the USDA eligibility map
- Compare FHA and HomeReady Loan Estimates side-by-side
- Pick the program with the lowest all-in cost
- VA and USDA loans avoid PMI entirely, saving $100-$300 monthly.
2. State HFA Grants and Forgivable Seconds
Every state runs a Housing Finance Agency with first-time buyer grants and forgivable second mortgages. California's MyHome Assistance provides up to 3.5% of the loan as a silent second forgiven after 5 years. Texas TSAHC offers a 5% grant usable for down payment and closing costs. New York SONYMA has the Achieve the Dream program at 1% down with $15,000 in assistance. Florida Hometown Heroes gives up to $35,000 for essential workers. Most programs cap household income at 80%-140% of area median and require a 640+ credit score. Stacking a state grant with federal low-down-payment loans can let you buy with less than $5,000 out of pocket.
- Find your state HFA at ncsha.org
- Check income and purchase price limits for your county
- Apply for the down-payment assistance grant
- Complete a HUD-approved homebuyer education course
- Pair the grant with your FHA or conventional loan
- Most HFA grants require a 6-hour homebuyer education class.
3. Special Niche Programs to Stack
Good Neighbor Next Door offers 50% off the list price for teachers, firefighters, EMTs, and police officers who buy in HUD revitalization areas and commit to living there 3 years. The Section 184 Native American loan needs just 2.25% down with no PMI. Bank of America's Community Homeownership Commitment offers up to $10,000 in grants with no repayment. Chenoa Fund and NeighborhoodEdge provide forgivable 3.5% second mortgages usable with FHA loans. Many credit unions add $500-$2,500 first-time buyer credits. Employer assistance from companies like Wells Fargo, Fannie Mae, and Pfizer can add $5,000-$25,000 in forgivable loans after 3-5 years of service.
- Check HUD's Good Neighbor Next Door listings weekly
- Verify tribal membership for Section 184 eligibility
- Ask your HR about employer homeownership assistance
- Compare Chenoa Fund to your state HFA grant
- Stack employer credit on top of a state grant
- Good Neighbor Next Door homes list for just 7 days, so check weekly.
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