First-time homebuyers may qualify for special mortgage rates and incentives that are not available to other homebuyers. If you’re looking to buy in the Midwest, we’ve rounded up all the information you need to understand which programs you could qualify for in your region.
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Table of Contents
- Key Points
- • First-time homebuyers in the Midwest may qualify for special state and federal funding programs that offer low mortgage rates, down payment assistance, and help with closing costs.
- • Despite price increases over the years, many Midwestern states, including Indiana, Michigan, and Ohio, still have median home prices below the national average.
- • Most of the states highlighted here offer financial assistance programs specifically tailored to low- to moderate-income first-time buyers.
- • While the housing markets in states such as Kansas and Wisconsin are competitive due to rising prices and low inventory, state-run programs can help offset upfront costs.
- • Buyers should review state-specific homebuyer programs and use affordability calculators to determine what kind of house they can afford.
Popular Midwest First-Time Home Buyer Programs
Ohio
The real estate market in Ohio is currently competitive. According to Redfin, in February 2026, home prices were up 4.9% compared to last year, with a median price of $253,200, and the number of homes sold was down 2.5% year over year. Sales prices had the most substantial jump in Youngstown, Mentor, and Fairfield, where increases all exceeded 25%.
Things can look a bit intimidating for first-time homebuyers seeking a home mortgage loan in Ohio in 2026. But don’t fret. Qualifying for a mortgage and affording a home may be more within your means than you think.
The Ohio Housing Finance Agency offers a variety of programs for low- and moderate-income first-time homebuyers meant to help them achieve homeownership.
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Pair up with a local real estate agent through HomeStory and unlock up to
$9,500 cash back at closing. Average cash back received is $1,700.
💡 Learn about Ohio first-time homebuyer programs
Michigan
With Detroit’s revitalization, the popularity of resort towns on the shores of the Great Lakes, and the proximity to wilderness in the Upper Peninsula, Michigan real estate is in demand., The good news for first-time buyers: Homes are still relatively affordable.
As of February 2026, Redfin reports that the number of homes sold decreased by 10.3% year over year, while home prices are up 3.5%. Despite this increase, the median sales price of $259,900 is far below the national median existing-home sales price of $429,708.,
First-time homebuyers looking to settle in Michigan may find help through the Michigan State Housing Development Authority.
💡 Learn about Michigan first-time homebuyer programs
Indiana
At $261,900, Indiana’s average home value as of February 2026 was up 2.7% since last year, according to Redfin. Even with that increase, house prices are generally lower than for America as a whole. That doesn’t mean buying a home for the first time is easy, but it certainly places home ownership within reach for more people.
There’s lots of helpful information on the home-buying process available to house-hunters in Indiana, and there are a number of state programs that offer help with down payments, mortgages, and closing costs. First-time buyers, especially, might want to have a look.
💡 Learn about Indiana first-time homebuyer programs
Wisconsin
According to Redfin, in February 2026, home prices in Wisconsin increased 3.9% compared to the previous year, and the number of homes sold decreased by 2.1%. The median sale price remains lower than the national average at $322,800.
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While the uptick in cost may cause concern for those saving to purchase a property, the Wisconsin Housing and Economic Development Authority offers low-cost financing programs for qualified first-time homebuyers.
💡 Learn about Wisconsin first-time homebuyer programs
Illinois
High prices, fewer available homes, and an influx of outside investors and cash buyers can make diving into the Illinois housing market as a first-time buyer feel daunting.,
According to Redfin, the median sale price in Illinois hit $299,500 in February 2026 — a 4.6% year-over-year increase. However, these values vary greatly depending on where in the state you are looking to buy. In Winnetka, home prices were up 56.4%, and the median purchase price was $1.925 million, while Marion saw a 13.0% decrease and a relatively affordable median price of $137,093.
Another bit of good news: The state and some counties offer financial assistance. There also are longstanding federal programs that could improve a buyer’s chances of success.
💡 Learn about Illinois first-time homebuyer programs
Minnesota
Home values in Minnesota have remained stable over the past year, falling 2.0% to a median price of $347,300 in February 2026.
There are several opportunities for the first-time homebuyer in Minnesota through state programs that give assistance with mortgage rates, down payments, and closing costs to those who qualify.
💡 Learn about Minnesota first-time homebuyer programs
First-time homebuyers can
prequalify for a SoFi mortgage loan,
with as little as 3% down.
Questions? Call (888)-541-0398.
Iowa
Homes in the heartland of Iowa remain relatively affordable, with an average value of $239,900 compared to the national figure of $429,708.
The Iowa Finance Authority offers homebuyer assistance programs that can make buying a home more affordable, especially for first-time buyers. You may also be eligible for city-specific homebuyer assistance programs or other first-time homebuyer loans.
💡 Learn about Iowa first-time homebuyer programs
Missouri
According to Redfin, the real estate market in Missouri has shown steady growth of 5.3% since last year, but the state’s average home value of $270,700 remains nicely below the national average.
As a first-time homebuyer with a low to moderate income, you may qualify for state and local programs that offer mortgages and down payment assistance. Even better: You qualify as a first timer if you haven’t owned a home in three years.
💡 Learn about Missouri first-time homebuyer programs
North Dakota
In addition to tons of open space, gorgeous landscapes, and the highest quality of life in the U.S., the cost of living in North Dakota is lower than the U.S. average. In February 2026, according to Redfin, the median sales price increased 16.8% to $323,400 compared to the previous year, but there are still plenty of opportunities to find an affordable home.
Several state programs provide financial assistance and low-interest mortgage loans to first-time homebuyers in North Dakota. Many of these programs are designed to help low- to moderate-income buyers, and they may have income and purchase price limits, a required credit score, or other criteria you’ll need to meet.
💡 Learn about North Dakota first-time homebuyer programs
South Dakota
South Dakota saw a modest 1.0% increase in home prices from February 2025 to February 2026, and the cost of living remains relatively low compared to other states. The median home price in South Dakota is now $327,800, according to Redfin.
If you lack the money for a down payment or aren’t sure how you will afford a mortgage, you may qualify for assistance from state programs.
💡 Learn about South Dakota first-time homebuyer programs
Nebraska
In February 2026, Nebraska’s median home price increased 3.0% to $297,200 compared to the previous year. As this is below the national average, now could be a good time to buy.
The Nebraska Investment Finance Authority offers financial assistance programs for first-time homebuyers.
💡 Learn about Nebraska first-time homebuyer programs
Kansas
In recent years, it has been difficult for young buyers to enter the Kansas housing market, but falling interest rates and increased construction are expected to make homeownership more accessible in 2026.
According to Redfin, in February 2026, the median home price in Kansas increased by just 1.8% to $286,600 year over year. However, in Lenexa, prices soared by 21.3% to a median price of $500,225.
Fortunately, buyers who are struggling with the costs of purchasing their first home in Kansas may be able to get financial help through programs offered by the state and some cities. There also are longstanding federal programs that may improve a buyer’s chances of success.
💡 Learn about Kansas first-time homebuyer programs
The Takeaway
Qualifying first-time home buyers in the Midwest have many options available to them, including assistance that helps cover down payments and closing costs. If you’re looking to buy your first home and aren’t sure how to get started, looking at a list of homebuyer programs in the state where you want to buy is a great place to start. Once you know what kind of assistance you may qualify for, it’s a good idea to estimate just how much house you can really afford using a home affordability calculator.
Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% - 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It's online, with access to one-on-one help.
FAQ
What qualifies someone as a first-time homebuyer?
You may qualify as a first-time homebuyer if you haven’t owned a home in the past three years. Requirements vary by state, so make sure you check who qualifies in the state where you intend to buy.
Are Midwest home prices considered affordable?
Yes, many Midwestern states have median home prices below the national average. Iowa is the cheapest state to buy a house in the U.S.
What types of assistance are available for first-time buyers?
State programs may offer down payment assistance, help with closing costs, reduced mortgage interest rates, and access to low-interest loans. You may also be eligible for city-specific programs or federal assistance.
Are there income limits for first-time homebuyer programs?
Many state-run programs are designed for low- to moderate-income buyers and may include income caps, purchase price limits, and minimum credit score requirements. To qualify for a first-time homebuyer program, you may also need to live in a certain area or have a certain profession, as well as meet financial requirements.
How can I find out which programs I qualify for?
Start by reviewing your state’s housing finance agency website and checking for city-specific programs. You can also consult a HUD-approved housing counselor.
Photo credit: iStock/Nicholas Smith
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