Who Is Considered a First-Time Homebuyer in Wisconsin?

You are considered a first-time homebuyer in Wisconsin if you’ve never owned a home — or if you haven’t owned a home within the last three years. And, according to the U.S. Department of Housing and Urban Development (HUD), you also qualify as a first-time homebuyer if you are a single parent who has only owned a home with a partner while married or a displaced homemaker who has only owned a home with a spouse.

💡 Quick Tip: SoFi’s Lock and Look ⁺ feature allows you to lock in a low mortgage financing rate for 90 days while you search for the perfect place to call home.

5 Wisconsin Programs for First-Time Homebuyers

There are different types of mortgage loans and financial assistance programs for the first-time homebuyer in Wisconsin and some of them welcome buyers who aren’t purchasing their first home. Some may have income or credit score requirements.

1. WHEDA: Advantage Conventional Loan

The Wisconsin Housing and Economic Development Authority offers the Advantage Conventional Loan . The property you’re buying must be your primary residence for the life of the loan.

To qualify, you must have a credit score of 620 and meet income limits. You will also take a homebuyer education course.

2. WHEDA: Advantage FHA

This program is similar to the Advantage Conventional Loan — but you must have a credit score of at least 640 to qualify. To see if you are eligible, find a WHEDA lender .

3. WHEDA: Easy Close DPA

This down payment assistance program provides at least $1,000 and up to 6% of the purchase price of a home when partnered with a WHEDA Conventional first mortgage loan. It is a 10-year fixed-rate second mortgage with monthly payments.

To qualify, you must meet the income limits that apply to your WHEDA Conventional first mortgage.

4. WHEDA: Capital Access DPA

This down payment assistance program is similar to the Easy Close DPA, with a few notable differences. This is a 30-year 0% interest loan with no payments required. (The loan is paid in full when the first mortgage is paid off.) There are separate income limits, which are generally lower. As of May 1, 2025, the Capital Access DPA program was closed for the year due to funding restraints. Check into the program when you’re ready to buy as funds come and go.

5. City of Madison: Home-Buy the American Dream

Here’s an example of one of the financial assistance programs offered by individual cities in Wisconsin: Madison offers down payment and closing cost assistance in the form of a loan up to $35,000.

The home you’re buying must be in the city of Madison and be a single-family home, condo, or one-half of a duplex.

Payments are deferred until you sell or refinance the property. You are required to invest 1% in the transaction.

Recommended: First-Time Homebuyer Guide

How to Apply to Wisconsin Programs for First-Time Homebuyers

The state programs covered above have different criteria you must meet in order to qualify. Contact a participating lender to find out which programs are right for you.

It may also be helpful to run some numbers using an online mortgage calculator to see how much a loan might cost you. This can also help you think about how much house you can afford.

Federal Programs for First-Time Homebuyers

Several federal government programs are designed for people who have low credit scores or limited cash for a down payment. Although most of these programs are available to repeat homeowners, like state programs, they can be especially helpful to people who are buying a first home or who haven’t owned a home in several years.

The mortgages are generally for single-family homes, two- to four-unit properties that will be owner occupied, approved condos, townhomes, planned unit developments, and some manufactured homes.

Federal Housing Administration (FHA) Loans

The FHA, which is part of the U.S. Department of Housing and Urban Development (HUD), insures mortgages for borrowers with lower credit scores. Homebuyers choose from a list of approved lenders that participate in the FHA loan program. Loans have competitive interest rates and require a down payment of 3.5% of the purchase price for borrowers, who typically need FICO® credit scores of 580 or higher.

Worth noting: Those with lower credit scores (in the 500 to 579 range) must put at least 10% down.

In addition to examining your credit score, lenders will look at your debt-to-income ratio (DTI, your monthly debt payments compared with your monthly gross income). FHA loans may allow a DTI ratio of up to 57% in some cases, vs. a typical 45% to 50% maximum for a conventional loan.

Gift money for the down payment is allowed from certain donors and will be documented in a gift letter for the mortgage.

FHA loans always require mortgage insurance: a 1.75% upfront fee and annual premiums for the life of the loan, unless you make a down payment of at least 10%, which allows the removal of mortgage insurance after 11 years.

You can learn more about these loans, including FHA loans for refinance and rehab of properties, by reading up on FHA requirements, loan limits, and rates.

💡 Quick Tip: Backed by the Federal Housing Administration (FHA), FHA loans provide those with a fair credit score the opportunity to buy a home. They’re a great option for first-time homebuyers.¹

Freddie Mac Home Possible Mortgages

Very low- and low-income borrowers may make a 3% down payment on a Home Possible® mortgage. These loans allow various sources for down payments, including co-borrowers, family gifts, employer assistance, secondary financing, and sweat equity.

The Home Possible mortgage is for buyers who have a credit score of at least 660.

Once you pay 20% of your loan, the Home Possible mortgage insurance will be canceled, which will lower your mortgage payments. (Or, if you put down 20% as a down payment, you won’t have to pay any mortgage insurance.)

Fannie Mae HomeReady Mortgages

Fannie Mae HomeReady® Mortgages allow down payments as low as 3% for low-income borrowers and may offer a $2,500 credit to use toward down payment or closing costs for qualified individuals. Applicants generally need a credit score of at least 620; pricing may be better for credit scores of 680 and above. Like the Freddie Mac program, HomeReady loans allow flexibility for down payment financing, such as gifts toward a mortgage and grants.

For income limits, a comparison to an FHA loan, and other information, go to this Fannie Mae site .

Fannie Mae Standard 97 LTV Loan

The conventional 97 LTV loan is for first-time homebuyers of any income level who have a credit score of at least 620 and meet debt-to-income criteria. The 97% loan-to-value mortgage requires 3% down. Borrowers can get down payment and closing cost assistance from third-party sources.

Unlike an FHA loan, the 97 LTV loan has no upfront mortgage insurance fee, though it does have cancellable mortgage insurance. The loan is for just one-unit single-family homes, co-ops, condos, and planned unit developments which you will live in.

Department of Veterans Affairs (VA) Loans

Active-duty members of the military, veterans, and eligible family members may apply for loans backed by the Department of Veterans Affairs. VA loans, which can be used to buy, build, or improve homes, have lower interest rates than most other mortgages and don’t require a down payment. Most borrowers pay a one-time funding fee that can be rolled into the mortgage.

Another benefit of VA loans is that they do not require private mortgage insurance (PMI) for borrowers who make a down payment of less than 20%. And they have more flexible credit score requirements. In some cases, even those who have previously been in foreclosure or bankruptcy can qualify.

Borrowers applying for a VA loan will need a Certificate of Eligibility from the VA so make sure to review a guide to qualifying for a VA loan as a first step in the process.

Native American Veteran Direct Loans (NADLs)

Eligible Native American veterans and their spouses may use these no-down-payment loans to buy, improve, or build a home on federal trust land. Unlike VA loans listed above, the Department of Veterans Affairs is the mortgage lender on NADLs. The VA requires no mortgage insurance, but it does charge a funding fee. Find out more by emailing [email protected].

US Department of Agriculture (USDA) Loans

No down payment is required on these loans to moderate-income borrowers that are guaranteed by the USDA in specified rural areas. Borrowers pay an upfront guarantee fee and an annual fee that serves as mortgage insurance.

The USDA also directly issues loans to low- and very low-income people. For loan basics and income and property eligibility, head to this USDA site .

HUD Good Neighbor Next Door Program

This program helps police officers, firefighters, emergency medical technicians, and teachers qualify for mortgages in the areas they serve. Borrowers can receive 50% off a home in what HUD calls a “revitalization area.” They must live in the home for at least three years. For more information, visit the HUD program page.

Wisconsin First-Time Homebuyer Stats for 2025

Want a better picture of how you stand as a first-time homebuyer? Consider these figures:

•  First-time homebuyers in the U.S.: 24% of all homebuyers

•  Median age of first-time homebuyers in U.S.: 38

•  Median home price in Wisconsin: $328,500

•  Average down payment in Wisconsin: 13%

•  Average credit score of homebuyer in Wisconsin: 738

Financing Tips for First-Time Homebuyers

In addition to federal and state government-sponsored lending programs, there are other financial strategies that teach you how to lower your mortgage payment:

•  Traditional IRA withdrawals. The IRS allows qualifying first-time homebuyers a one-time, penalty-free withdrawal of up to $10,000 from their IRA if the money is used to buy, build, or rebuild a home. For this purpose, the IRS considers anyone who has not owned a primary residence in the past two years a first-time homebuyer. You will still owe income tax on the IRA withdrawal. If you’re married and your spouse has an IRA, they may also make a penalty-free withdrawal of $10,000 to purchase a home. The downside, of course, is that large withdrawals may jeopardize your retirement savings.

•  Roth IRA withdrawals. Because Roth IRA contributions are made with after-tax money, the IRS allows tax- and penalty-free withdrawals of contributions for any reason as long as you’ve held the account for five years. You may also withdraw up to $10,000 in earnings from your Roth IRA without paying taxes or penalties if you are a qualifying first-time homebuyer and you have had the account for five years. With accounts held for less than five years, homebuyers will pay income tax on earnings withdrawn.

•  401(k) loans. If your employer allows borrowing from the 401(k) plan that it sponsors, you may consider taking a loan against the 401(k) account to help finance your home purchase. With most plans, you can borrow up to 50% of your 401(k) balance, up to $50,000 in a 12-month period, without incurring taxes or penalties. You pay interest on the loan, which is paid into your 401(k) account. You usually have to pay back the loan within five years, but if you’re using the money to buy a house, you may have up to 25 years to repay.

•  State and local down payment assistance programs. Usually offered at the regional or county level, these programs provide flexible second mortgages for first-time buyers looking into how to afford a down payment.

•  Your employer. Your employer may offer access to lower-cost lenders and real estate agents in your area, as well as home buying education courses.

•  Your lender. Always ask your lender about any first-time homebuyer grant or down payment assistance programs available from government, nonprofit, and community organizations in your area.

The Takeaway

The housing market in Wisconsin is competitive, but there are programs that can help first-time homebuyers save on a mortgage and down payment costs, as long as they qualify. Federal-backed and conventional loans are also worth exploring.

By Kelly Boyer Sagert

(Last Updated – 06/2025)

The University of Tennessee, Knoxville, also known as UT Knoxville, is the flagship campus of the five-campus University of Tennessee system. The public, four-year research institution is known for its supply chain and sciences programs and is home to the UT Space Institute and the UT Institute of Agriculture.

Here’s an overview of University of Tennessee tuition costs for both in-state and out-of-state students, housing and other costs, as well as Tennessee’s acceptance rate.

Total Cost of Attendance

Financial Aid

Nearly every student at UT Knoxville (90%) uses one or more types of financial aid to help pay for the University of Tennessee’s costs. This may include scholarships, grants, and/or loans. For example, 17% of students have Pell Grants, a type of federal funding for undergraduates with exceptional financial need.

Generally, financial aid is monetary assistance awarded to students based on personal need merit. Students who qualify for financial aid can use it to pay for college costs like tuition, books, and living expenses.

The federal government is the largest provider of student financial aid. However, aid can also be given by state governments, colleges and universities, private companies, and nonprofits. The different types include:

•  Scholarships: These can be awarded by schools and other organizations based on students’ academic excellence, athletic achievement, community involvement, job experience, field of study, or financial need.

•  Grants: Grants are generally based on financial need. These can come from federal, state, private, or nonprofit organizations.

•  Work-study: Federal Work-Study provides qualifying students with part-time employment to earn money for expenses while in school.

•  Federal student loans: Federal student loans are money borrowed directly from the U.S. Department of Education. They come with fixed interest rates that are typically lower than private loans.

Colleges, universities, and state agencies use the Free Application for Federal Student Aid (FAFSA®) to determine financial aid eligibility. The FAFSA can be completed online, but note that state, federal, and school deadlines may differ.

You can find other financial aid opportunities on databases such as:

•  U.S. Department of Education — Search for grants from colleges and universities by state

•  College Scholarship Service Profile (CSS) — A global college scholarship application used by select institutions to award financial aid

Recommended: Tennessee Student Loan & Scholarships

Private Student Loans

At the University of Tennessee, Knoxville, 29% of students take out federal student loans and 7% take out private student loans. The average private student loan is $23,030.

Private loans are funded by private organizations such as banks, online lenders, credit unions, some schools, and state-based or -affiliated organizations. While Federal student loans have interest rates that are regulated by Congress, private lenders follow a different set of regulations so their qualifications and interest rates can vary widely.

What’s more, private loans have variable or fixed interest rates that may be higher than federal loan interest rates, which are always fixed. Private lenders may (but don’t always) require you to make payments on your loans while you are still in school, compared to federal student loans, which you don’t have to start paying back until after you graduate, leave school, or change your enrollment status to less than half-time.

Private loans don’t have a specific application window and can be applied for on an as-needed basis. However, if you think you may need to take out a private loan, it’s a good idea to submit your FAFSA first to see what federal aid you may qualify for, since it generally has better rates and terms.

If you’ve missed the FAFSA deadline or you’re struggling to pay for school during the year, private loans can potentially help you make your tuition payments. Just keep in mind that you will need enough lead time for your loan to process and for your lender to send money to your school.

Recommended: Guide to Private Student Loans

Projected 4-Year-Degree Price

The University of Tennessee cost for four years, including tuition and fees, room and board, books, and other expenses, would be $140,256 for Tennessee residents (based on 2024-25 numbers). This is higher than the national average of $115,360 for in-state students at public universities.

For residents of other states, the total cost of UT Knoxville would be $218,032, which is more than the national average for out-of-state students at public universities of $186,920.

This student loan and scholarship information may be valuable as you research schools and costs.

Undergraduate Tuition and Fees

Costs for 2024-25

The cost for University of Tennessee tuition and fees was $13,812 for in-state students and $33,256 for out-of-state students in 2024-25. Books and supplies were $1,598. This came to a total cost of $15,410 for in-state students and $34,854 for out-of-state students.

Graduate Tuition and Fees

The average University of Tennessee tuition and fees for graduate school was $15,972 for in-state residents in 2024-25. In comparison, the average cost of graduate school in the U.S. is $36,760.

There are many options for graduate loans that can help with these costs.

Cost per Credit Hour

The cost per credit hour for Tennessee residents is $502. Out-of-state residents will pay $1,317 per credit hour.

Campus Housing Expenses

At UT Knoxville, freshmen are required to live on campus. Students can choose from apartment-style housing, residence halls, and community-style halls. There are also Living and Learning Communities where students can live with others who share their same interests and fields of study.

For upperclassmen, there are many off-campus housing options within walking distance of the university.

University of Tennessee Acceptance Rate

Admission Requirements

When applying to the University of Tennessee, here’s what you’ll need to submit with your application.

Required:

•  High school academic record

•  Standardized test scores

•  Essay

Optional:

•  Recommendation letters (academic, professional, or personal)

•  Supporting statement (might include academic achievements, community involvement, and other information about your experiences and background)

The UT Knoxville Early Action application deadline is November 1, and the Regular Admission deadline is December 16.

SAT and ACT Scores

Here are the standardized test scores of accepted students at UT Knoxville.

Popular Majors at the University of Tennessee

UT Knoxville offers numerous degree programs across ​​12 academic colleges and the Baker School of Public Policy. These are some of the most popular majors.

1. Supply Chain Management

The Supply Chain Management Bachelor of Science (BS) degree has several areas of focus to choose from, including Business Analytics, Health Integrated and Business Engineering, Information Management, or International Business.

Undergraduate degrees in 2023-24: 423

2. Psychology

Psychology students will learn research methods they can apply in hands-on lab work. They’ll take courses like Human Development, Cognitive Basis of Behavior, and Evolutionary Psychology and Ethology.

Undergraduate degrees in 2023-24: 332

3. Marketing

Depending on a student’s interest, a marketing degree can focus on Business Analytics, Customer and Brand Strategy, Digital and Visual Marketing, Professional Sales, Health Integrated Business and Engineering, Information Management, International Business, or Supply Chain Management.

Undergraduate degrees in 2023-24: 295

4. Nursing

Students train for future placement as a licensed registered nurse. The school also offers an accelerated track for a Bachelor of Science in Nursing degree for non-nurses who already have a college degree and want to pursue a career in nursing.

Undergraduate degrees in 2023-24: 239

5. Biological Science

In this program, biological science majors can opt for a concentration like Biochemistry and Cellular and Molecular Biology, Ecology and Evolutionary Biology, Microbiology, or the Biology of Global Health.

Undergraduate degrees in 2023-24: 239

6. Finance

Students interested in pursuing a BS degree in finance learn how to assess financial statements, construct investment portfolios, present financial data, and more.

Undergraduate degrees in 2023-24: 237

7. Kinesiology

Kinesiology students learn about exercise physiology, biomechanics, sport psychology, motor behavior, and physical activity epidemiology. Many choose to pursue a master’s degree. They typically go on to have careers in physical therapy, occupational therapy, chiropractic, or athletic training, or as physician assistants.

Undergraduate degrees in 2023-24: 192

8. Business Statistics

Another top major at UT Knoxville is business statistics, which focuses on applied statistics. Students learn how to gather data about an organization’s performance, analyze it to offer business solutions, and make predictions about further growth.

Undergraduate degrees in 2023-24: 179

9. Mechanical Engineering

After getting a solid foundation in general science, mechanical engineering students learn about mechanical design, solid and fluid mechanics, thermodynamics, heat transfer, vibrations, manufacturing processes, instrumentation, and automatic control.

Undergraduate degrees in 2023-24: 143

10. Political Science

Political science students can opt for a concentration in International Affairs, Law and Courts, or Public Administration. Courses in this degree program include Introduction to Comparative Politics, Introduction to Political Philosophy, and Tennessee Government and Politics.

Undergraduate degrees in 2023-24: 132

Graduation Rate

Here are the graduation rates at the University of Tennessee for students pursuing bachelor’s degrees who began in fall 2017.

•  4 years: 56%

•  6 years: 73%

Post-Graduation Median Earnings

UT Knoxville graduates earn a median annual salary of $60,249. This is slightly less than the median annual salary for all graduates of four-year colleges, which is $68,680.

Who Is Considered a First-Time Homebuyer in Arkansas?

Here’s something you should know as you start your search for a home loan: For most programs in Arkansas, there is no first-time buyer requirement. For those that do have a requirement, applicants are considered first-time homebuyers if they haven’t owned a home for at least the past three years. (Veterans, veterans’ spouses, and those buying in targeted areas also may qualify for this program.)

Before you start the application process, whether assistance is offered by a state or city, it’s a good idea to be clear on the specific eligibility standards.

Recommended: Understanding Mortgage Basics

Other Arkansas Homebuyer Programs by Location

If you’ve already chosen the part of Arkansas you hope to make your home, you also may want to research local buyer assistance programs. (And if you aren’t sure where to put down roots, check out a guide to the best affordable places in Arkansas to live.)

Check back occasionally for new offers. Some first-time homebuyer programs base their opportunities (and deadlines) on the funds they expect to become available. When their money runs out, they may press pause.

Some local programs include:

Crawford-Sebastian Community Development Council Programs

The Crawford-Sebastian Community Development Council’s Homeownership and Asset Development Center provides homebuyer counseling and education programs as well as down payment assistance in the form of grants and forgivable loans. For information on the benefits and requirements of various programs, you can check out the Homeownership Program page, email [email protected], or call 479-785-2303.

City of Jonesboro Homeownership Assistance Program

Jonesboro’s Homeownership Assistance Program was created to help low- and moderate-income homebuyers who wish to purchase a property in the city. The program offers qualifying first-time homebuyers a grant that can be used for their down payment and closing costs. For information, you can go to the Homeownership Assistance Program page, email [email protected], or call 870-336-7170.

City of Little Rock Down Payment Assistance Program

Little Rock’s down payment assistance program offers up to $5,000 to qualifying low- and moderate-income first-time homebuyers through a forgivable second loan. For information, check out the program brochure or ask your Arkansas lender about applying.

City of Pine Bluff Homebuyer Assistance Program

Pine Bluff’s Economic and Community Development Department offers this program, which was created to help low- and moderate-income buyers. Qualified applicants may receive assistance of $2,000 for a down payment and up to $3,000 of eligible closing costs. For requirements and approved lenders, check out the program’s brochure .

How to Apply to Arkansas Programs for First-Time Homebuyers

Follow the links under each program to find participating lenders or other contacts.

Federal Programs for First-Time Homebuyers

Several federal government programs are available for people with low credit scores or limited funds for a down payment. They are sometimes for repeat homeowners, but these national programs are generally created for people who are buying a first home or who haven’t owned a home in several years.

The mortgages tend to be for single-family homes, two- to four-unit properties that will be owner occupied, approved condos, townhomes, planned unit developments, and some manufactured homes.

Federal Housing Administration (FHA) Loans

The FHA, which is part of the U.S. Department of Housing and Urban Development (HUD), insures mortgages for borrowers with lower credit scores. Homebuyers choose from an approved-lenders list of institutions participating in the FHA loan program. Loans have competitive interest rates and require a down payment of 3.5% of the purchase price for borrowers, who typically need FICO® credit scores of 580 or higher. Those with scores as low as 500 must put at least 10% down.

Limits for FHA loans in 2025 range from $524,225 for single units to $1,008,300 for four-unit properties. Higher-cost areas tend to have higher limits.

In addition to examining your credit score, lenders will look at your debt-to-income ratio (DTI, your monthly debt payments compared with your monthly gross income). A DTI of up to 57% is allowed for FHA loans, vs. a typical 45% maximum for a conventional loan.

Gift money for the down payment is allowed from certain donors and will be documented in a gift letter for the mortgage.

FHA loans without exception require mortgage insurance premiums (MIP): This includes a fee of 1.75% of the base loan amount, usually rolled into the loan, upfront. Borrowers must carry annual premiums for the life of the loan. As of 2025, new homebuyer monthly MIP is 0.15% to 0.75%. With a down payment of at least 10%, the removal of mortgage insurance is possible after 11 years. For a $300,000 mortgage balance, upfront MIP would be around $5,250 and monthly MIP, at a rate of 0.55%, would be around $137.

To learn more about options, including FHA loans for refinancing and rehabbing properties, read about FHA requirements, loan limits, and rates.

Freddie Mac Home Possible Mortgages

Low- and very low-income borrowers may make an affordable 3% down payment on a Home Possible® mortgage. These loans allow various sources for down payments, including co-borrowers, family gifts, employer assistance, secondary financing, and sweat equity.

The Home Possible mortgage is for buyers who have a credit score of 660 or higher. Once you pay off 20% of the loan, the Home Possible mortgage insurance becomes unnecessary, which will lower your mortgage payments.

Once you pay 20% of your loan, the Home Possible mortgage insurance will be canceled, which will lower your mortgage payments.

Fannie Mae HomeReady Mortgages

Fannie Mae HomeReady^® Mortgages allow down payments as low as 3% for low-income borrowers. Applicants generally need a credit score of at least 620; pricing may be better for credit scores of 680 and above. Like the Freddie Mac program, HomeReady loans allow flexibility for down payment financing, such as gifts and grants.

For income limits, a comparison to an FHA loan, and other information, go to this Fannie Mae site.

Fannie Mae Standard 97 LTV Loan

The conventional 97 LTV loan is for first-time homebuyers of any income level who have a credit score of at least 620 and meet debt-to-income criteria. The 97% loan-to-value mortgage requires 3% down. Borrowers can get down payment and closing cost assistance from third-party sources.

Department of Veterans Affairs (VA) Loans

Active members of the military, veterans, reservists, and surviving spouses who are eligible may apply for loans backed by the Department of Veterans Affairs. These loans designed for those who serve our country can be used to buy, build, or improve homes, have lower interest rates than most other mortgages and don’t require a down payment. Most borrowers pay a one-time funding fee that can be rolled into the mortgage.

Another VA loan advantage is that they do not require PMI for borrowers who make a down payment of less than 20%. And they have more flexible credit score requirements. In some cases, even those who have previously been in foreclosure or bankruptcy can qualify.

Borrowers applying for a VA loan will need a Certificate of Eligibility from the VA so make sure to review a guide to qualifying for a VA loan as a first step in the process.

Native American Veteran Direct Loans (NADLs)

Eligible Native American veterans and their spouses may use these no-down-payment loans to buy, improve, or build a home on federal trust land. Unlike VA loans listed above, the Department of Veterans Affairs is the mortgage lender on NADLs. The VA requires no mortgage insurance, but it does charge a funding fee.

US Department of Agriculture (USDA) Loans

No down payment is required on these loans to moderate-income borrowers that are guaranteed by the USDA in specified rural areas. Borrowers pay an upfront guarantee fee and an annual fee that serves as mortgage insurance.

The USDA also directly issues loans to low- and very low-income people. For loan basics and income and property eligibility, check out this USDA website.

HUD Good Neighbor Next Door Program

This program helps police officers, firefighters, emergency medical technicians, and teachers qualify for mortgages in the areas they serve. Borrowers can receive 50% off a home in what HUD calls a “revitalization area.” They must live in the home for at least three years.

Visit the HUD program page.

First-Time Homebuyer Stats for 2025

Here are some stats on homebuyers and the homebuying process.

•  Percentage of buyers nationwide who are first-time buyers: 24%

•  Median age of first-time homebuyers: 38

•  Median down payment for first-time homebuyer: 9%

•  Median home price in Arkansas: $266,500

•  Median down payment: $26,232

•  Average rent in Arkansas: $1,400

•  Average credit score in Arkansas: 695

Additional Financing Tips for First-Time Homebuyers

In addition to federal and state government-sponsored lending programs, there are other financial strategies that may help you become a homeowner. Some examples:

•  Traditional IRA withdrawals. The IRS allows qualifying first-time homebuyers a one-time, penalty-free withdrawal of up to $10,000 from their IRA if the money is used to buy, build, or rebuild a home. For the purposes of IRA withdrawals, a first-time homebuyer is someone who has not owned a principal residence in the last two years. You will still owe income tax on the IRA withdrawal. If you’re married and your spouse has an IRA, they may also make a penalty-free withdrawal of $10,000 to purchase a home. The downside, of course, is that large withdrawals may jeopardize your retirement savings.

•  Roth IRA withdrawals. Because Roth IRA contributions are made with after-tax money, the IRS allows tax- and penalty-free withdrawals of contributions for any reason as long as you’ve held the account for five years. You may also withdraw up to $10,000 in earnings from your Roth IRA without paying taxes or penalties if you are a qualifying first-time homebuyer and you have had the account for five years. With accounts held for less than five years, homebuyers will pay income tax on earnings withdrawn.

•  401(k) loans. If your employer allows borrowing from the 401(k) plan that it sponsors, you may consider taking a loan against the 401(k) account to help finance your home purchase. With most plans, you may be able to borrow as much as 50% of your 401(k) balance, up to $50,000, within a 12-month period and incur no taxes or penalties. You pay interest on the loan, which is paid into your 401(k) account. You usually have to pay back the loan within five years, but if you’re using the money to buy a house, you may have up to 15 years to repay.

•  State and local down payment assistance programs. Usually offered at the regional or county level, these programs provide flexible second mortgages for first-time buyers looking into how to afford a down payment.

•  The mortgage credit certificate program. First-time homeowners and those who buy in targeted areas can claim a portion of their mortgage interest as a tax credit, up to $2,000. Any additional interest paid can still be used as an itemized deduction. To qualify for the credit, you must be a first-time homebuyer, live in the home, and meet income and purchase price requirements, which vary by state. If you refinance, the credit disappears, and if you sell the house before nine years, you may have to pay some of the tax credit back. There are fees associated with applying for and receiving the mortgage credit certificate that vary by state. Often the savings from the lifetime of the credit can outweigh these fees.

•  Your employer. Your employer may offer access to lower-cost lenders and real estate agents in your area, as well as home buying education courses.

•  Your lender. Always ask your lender about any first-time homebuyer grant or down payment assistance programs available from government, nonprofit, and community organizations in your area.

The Takeaway

Low- and moderate-income first-time homebuyers in Arkansas may be able to pair a mortgage with down payment assistance. Other first-time buyers can shop for a mortgage on their own that’s a good fit.

By Kim Franke-Folstad

(Last Updated – 06/2025)

First-time homebuyers in Arizona are facing many of the same challenges as buyers across the rest of the country — including high costs. But perhaps they are feeling the pinch even more. The median selling price of an Arizona home hit $440,600 in June 2025, down just 3.1% year over year in the year’s first quarter, after rising consistently during the second half of 2025, Redfin reported. In some popular Arizona communities, the numbers soar higher still. For example, in Scottsdale, the home sale price median is currently $861,520.

The median home sale price in the U.S. is $438,357, according to Redfin data, just below the Arizona median.

Wherever they are coming from, first-time homebuyers may feel as if the keys to their first homes are dangling further out of reach, but fortunately, they may be able to get financial help through programs offered by the state and some counties. Some longstanding federal programs could also improve a buyer’s chances of success. These programs can help prospective homebuyers save on their down payment, mortgage, and closing costs.

Who Is Considered a First-Time Homebuyer in Arizona?

For a number of Arizona’s home mortgage loan programs, you’re considered a first-time buyer if you haven’t owned a home in the last three years. It’s a good idea, though, to be clear on each program’s specific eligibility standards before you start the application process.

It’s a good idea, though, to be clear on each program’s specific eligibility standards before you start the application process.

💡 Quick Tip: Thinking of using a mortgage broker? That person will try to help you save money by finding the best loan offers you are eligible for. But if you deal directly with an online mortgage lender, you won’t have to pay a mortgage broker’s commission, which is usually based on the mortgage amount.

5 Arizona Programs for First-Time Homebuyers

Most first-time homebuyer programs in Arizona are designed to help low- to moderate-income buyers working to come up with a down payment and/or closing costs when they purchase a house. Generally, that assistance comes in the form of a second mortgage that is fully forgiven if the buyer stays in the home for a set amount of time (usually three years).

During that time, buyers don’t have to make a monthly payment or pay interest on the second loan. But if they sell the home before the full three years is up, they will be required to repay a portion of the assistance they received.

Participants must meet limits regarding their income, credit scores, and debt-to-income ratio. Typically, the home must be the buyer’s primary residence, and there may be limits on how much the home can cost. Also, at least one of the buyers may be required to complete a homebuyer education course.

Read on for details about Arizona’s homebuyer programs.

1. Home+Plus Down Payment Assistance Program

The Arizona Industrial Development Authority’s Home+Plus Home Buyer Down Payment Assistance
Program offers qualifying buyers a 30-year fixed-rate mortgage paired with up to 4% down payment assistance (DPA) to use toward the down payment and/or closing costs.

Depending on your eligibility and the home you plan to buy, you may have the option of choosing from different types of mortgages, including an FHA, VA, USDA, Fannie Mae, or Freddie Mac home loan.

Availability: Statewide

Assistance Amount: Up to 5% of the home’s purchase price

Type of Assistance: Second mortgage, fully forgiven after five years in the home

Benefits and Qualifications Include:

•   Annual income can’t be more than $146,503

•   All borrowers must have a minimum credit score of 620

•   Maximum DTI ratio allowed is 45% (50% in some cases)

•   Mortgage insurance is required if the first mortgage is a Fannie Mae or Freddie Mac loan and the down payment is under 20%, but the cost may be lower than for coverage outside the Home+Plus program

•   You don’t have to be a first-time homebuyer to qualify

•   At least one borrower must complete a homebuyer education course before the loan closes

To Apply: If you’re interested in Home+Plus assistance, a good first step may be to find a participating lender that is familiar with the program and can take you through the process.

2. Home in Five Advantage and Home In Five Platinum programs

Home in Five Advantage and Home in Five Platinum are offered to low- to moderate-income homebuyers in Arizona’s Maricopa County. Qualified borrowers can receive assistance with their down payment and closing costs, as well as a loan with a competitive interest rate.

Eligible K-12 teachers, first responders, military personnel and veterans, and individuals who earn up to $49,500 annually may receive an additional 1% in assistance.

Availability: Maricopa County, city of Phoenix

Assistance Amount: Up to 6% of the home’s purchase price

Type of Assistance: Second mortgage, fully forgiven after three years in the home

Benefits and Qualifications Include:

•   Annual income can’t be more than $141,820

•   All borrowers must have a credit score of 640 or above (680 for some loan types)

•   Maximum DTI ratio allowed is 50%

•   No maximum purchase price

•   At least one borrower must complete a homebuyer education course

•   Buyers must occupy the purchased home as their principal residence within 60 days of closing

•   Must be a new or existing single-family home, condominium, or townhome

Homebuyers in designated low-income neighborhoods may receive an additional 0.5% in assistance through the Home in Five Advantage BOOST program. Your lender can help you check your eligibility for this extra support.

To Apply: A trained loan officer with an approved lender can help you get started.

3. Pima Tucson Homebuyer’s Solution Program

The Pima Tucson Homebuyer’s Solution Program (PTHS) is provided by the Industrial Development Authority of the county of Pima and the City of Tucson. The program offers qualified homebuyers multiple first 30-year fixed mortgage options (including FHA, VA, USDA, Freddie Mac, and Fannie Mae loans) along with a forgivable second mortgage that can be used for a down payment (typically 2% to 5%) and closing costs.

Availability: Pima County and city of Tucson

Assistance Amount: Available at multiple levels

Type of Assistance: Assisted and unassisted rate mortgages and second mortgage, fully forgiven after three or 30 years

Benefits and Qualifications Include:

•   There is neither a first-time homebuyer nor purchase price qualification

•   Typical income cap is $126,351

•   Minimum credit score of 640 and maximum DTI of 45%

•   Buyers must occupy the property as their principal residence

•   Borrowers must complete a homebuyer education course

To Apply: Contact an approved lender.

4. Tucson Pima County HOME Down Payment Assistance Program

Qualified homebuyers in Tucson and Pima County can receive down payment assistance through the Community Investment Corporation’s HOME Down Payment Assistance Program Assistance is based on family size and household income.

Availability: Pima County and City of Tucson

Assistance Amount: Up to 20% of purchase price

Type of Assistance: Second mortgage; forgiveness depends on loan amount and duration

Benefits and Qualifications Include:

•   Maximum income of $101,550, depending on family size

•   Maximum DTI of 45%

•   Maximum purchase prices of $333,925 for existing homes; $389,491 for new properties

•   No cash assets over $10,000 and homebuyer must contribute at least $1,000 of their own funds to the purchase and have the equivalent of two months’ worth of mortgage payments on reserve in the bank

•   Buyers must occupy the property as their principal residence during the affordability period

•   Borrowers must complete a homebuyer education course

•   Inspection of property typically required

To Apply: Contact one of these approved counseling agencies for more information and assistance:

•   Administration of Resource and Choices

•   Chicanos Por La Causa

•   Family Housing Resources

•   Pima County Community Land Trust

•   Pio Decimo Center

•   Primavera Foundation

5. Mortgage Credit Certificate Program

Borrowers can use a mortgage credit certificate (MCC) to claim a portion of their annual mortgage interest, dollar for dollar, up to $2,000, as a federal tax credit every year for the life of their loan.

Applicants must be first-time homebuyers (you can’t have owned a home within the past three years) unless you’re a qualified military veteran or buying in a designated area. The nonprofit Community Investment Corporation administers the MCC program; income and purchase price limitations may vary by county.

To Apply: You can apply for the credit certificate when you take out a home loan through a state-approved participating lender. You can schedule an appointment with Arizona’s Community Investment Corporation (CIC) to learn more. The organization is not always accepting applications, so check back.

Federal Programs for First-Time Homebuyers

A number of federal government programs exist for people with low credit scores or limited down payment funds. Although they are sometimes for repeat homeowners, these national programs can be very helpful for people who are buying a first home or who haven’t owned a home in several years.

The mortgages are generally for single-family homes, two- to four-unit properties that will be owner occupied, approved condos, townhomes, planned unit developments, and some manufactured homes.

Federal Housing Administration (FHA) Loans

The FHA, a part of the U.S. Department of Housing and Urban Development (HUD), insures mortgages for borrowers with lower credit scores. Homebuyers choose from a list of approved lenders participating in the FHA loan program. Loans offer competitive interest rates and require down payments of 3.5% of the purchase price. Borrowers typically need FICO® credit scores of 580 and up. A buyer with a score as low as 500 must put down 10% or more.

FHA loan limits in 2025 range from $524,225 for single units to $1,008,300 for four-unit properties, with higher limits in high-cost areas.

In addition to looking at your credit score, lenders will examine your debt-to-income ratio (DTI, or your monthly debt payments compared with your monthly gross income). FHA allows a DTI of up to 57%, vs. a typical 45% maximum for a conventional loan.

Gift money for the down payment is allowed from certain donors and will be documented in a gift letter for the mortgage.

FHA loans always require mortgage insurance premiums (MIP): This includes a fee of 1.75% of the base loan amount, which can be rolled into the loan, upfront. Borrowers also carry annual premiums for the life of the loan. As of 2025, monthly MIP for new homebuyers is 0.15% to 0.75%. A down payment of at least 10% allows the removal of mortgage insurance after 11 years. For a $300,000 mortgage balance, upfront MIP would be around $5,250 and monthly MIP, at a rate of 0.55%, would be about $137.

To learn more about these loans, including FHA loans for refinancing and rehabbing properties, read up on FHA requirements, loan limits, and rates.

Freddie Mac Home Possible Mortgages

Low- and very low-income borrowers may make just a 3% down payment on a HomePossible® mortgage. These loans allow various sources for down payments, including co-borrowers, family gifts, employer assistance, secondary financing, and sweat equity.

The Home Possible mortgage is for buyers who have a credit score of at least 660. Once you pay 20% of your loan, the Home Possible mortgage insurance will be canceled, which will lower your mortgage payments.

Fannie Mae HomeReady Mortgages

Fannie Mae HomeReady^® Mortgages allow down payments as low as 3% for low-income borrowers. Applicants generally need a credit score of at least 620; pricing may be better for credit scores of 680 and above. Like the Freddie Mac program, HomeReady loans allow flexibility for down payment financing, such as gifts and grants.

For income limits, a comparison to an FHA loan, and other information, go to this Fannie Mae site.

Fannie Mae Standard 97 LTV Loan

The conventional 97 LTV loan is for first-time homebuyers of any income level who have a credit score of at least 620 and meet debt-to-income criteria. The 97% loan-to-value mortgage requires 3% down. Borrowers can get down payment and closing cost assistance from third-party sources.

Department of Veterans Affairs (VA) Loans

Active members of the military, veterans, reservists, and surviving spouses who are eligible may apply for loans backed by the Department of Veterans Affairs. These loans designed for those who serve our country can be used to buy, build, or improve homes, have lower interest rates than most other mortgages and don’t require a down payment. Most borrowers pay a one-time funding fee that can be rolled into the mortgage.

Another VA loan advantage is that they do not require PMI for borrowers who make a down payment of less than 20%. And they have more flexible credit score requirements. In some cases, even those who have previously been in foreclosure or bankruptcy can qualify.

They have more flexible credit score requirements. In some cases, even those who have previously been in foreclosure or bankruptcy can qualify.

Borrowers applying for a VA loan will need a Certificate of Eligibility from the VA so make sure to review a guide to qualifying for a VA loan as a first step in the process.

💡 Quick Tip: Active duty service members who have served for at least 90 consecutive days are eligible for a VA loan. But so are many veterans, surviving spouses, and National Guard and Reserves members. It’s worth exploring with an online VA loan application because the low interest rates and other advantages of this loan can’t be beat.†

Native American Veteran Direct Loans (NADLs)

Eligible Native American veterans and their spouses may use these no-down-payment loans to buy, improve, or build a home on federal trust land. The VA is the direct lender on NADLs and charges a funding fee. Learn more by emailing [email protected].

US Department of Agriculture (USDA) Loans

No down payment is needed on these loans to moderate-income borrowers that are guaranteed by the USDA in specified rural areas. Borrowers will pay an upfront guarantee fee and an annual fee that serves as mortgage insurance.

The USDA also issues direct loans to low- and very low-income people. Check out this USDA website for eligibility requirements.

HUD Good Neighbor Next Door Program

This program helps police officers, firefighters, emergency medical technicians, and teachers qualify for mortgages in the areas they serve. Borrowers can receive 50% off a home in what HUD calls a “revitalization area.” They must live in the home for at least three years.

Visit the HUD program page for more information.

First-Time Homebuyer Stats for 2025

Ever wonder where you fit amid the mix of buyers who are out there shopping for a home? Here are some stats to consider:

•   Percentage of buyers nationwide who are first-time buyers: 24%

•   Median age of first-time homebuyers: 38

•   Median down payment percentage for first-time homebuyers: 9%

•   Average credit score in Arizona: 712

•   Median single-family home value for Arizona properties: $434,739

•   Average home price per square foot in Arizona: $252

Recommended: Understanding Mortgage Basics

Additional Financing Tips for First-Time Homebuyers

In addition to federal and state government-sponsored lending programs, there are other financial strategies that may help you as a homebuyer in Arizona. Some examples:

•  Traditional IRA withdrawals. The IRS allows qualifying first-time homebuyers a one-time, penalty-free withdrawal of up to $10,000 from their IRA if the money is used to buy, build, or rebuild a home. A first-time homebuyer, for the purposes of IRA withdrawals, is someone who has not owned a principal residence in the last two years. You will still owe income tax on the IRA withdrawal. If you’re married and your spouse has an IRA, they may also make a penalty-free withdrawal of $10,000 to purchase a home. The downside, of course, is that large withdrawals may jeopardize your retirement savings.

•  Roth IRA withdrawals. Because Roth IRA contributions are made with after-tax money, the IRS allows tax- and penalty-free withdrawals of contributions for any reason as long as you’ve held the account for five years. You may also withdraw up to $10,000 in earnings from your Roth IRA without paying taxes or penalties if you are a qualifying first-time homebuyer and you have had the account for five years. With accounts held for less than five years, homebuyers will pay income tax on earnings withdrawn.

•  401(k) loans. If your employer allows borrowing from the 401(k) plan that it sponsors, you may consider taking a loan against the 401(k) account to help finance your home purchase. With most plans, you can borrow up to 50% of your 401(k) balance, up to $50,000, within a 12-month period without incurring taxes or penalties. You pay interest on the loan, which is paid into your 401(k) account. You usually have to pay back the loan within five years, but if you’re using the money to buy a house, you may have up to 15 years to repay.

•  State and local down payment assistance programs. Usually offered at the regional or county level, these programs provide flexible second mortgages for first-time buyers looking into how to afford a down payment.

•  The mortgage credit certificate program. First-time homeowners and those who buy in targeted areas can claim a portion of their mortgage interest as a tax credit, up to $2,000. (This doesn’t lower your mortgage payments, but can still be a good way to save.) Any additional interest paid can still be used as an itemized deduction.

To qualify for the credit, you must be a first-time homebuyer, live in the home, and meet income and purchase price requirements, which vary by state. If you refinance, the credit disappears, and if you sell the house before nine years, you may have to pay some of the tax credit back. There are fees associated with applying for and receiving the mortgage credit certificate that vary by state. Often the savings from the lifetime of the credit can outweigh these fees.

•  Your employer. Your employer may offer access to lower-cost lenders and real estate agents in your area, as well as home buying education courses.

•  Your lender. Always ask your lender about any first-time homebuyer grant or down payment assistance programs available from government, nonprofit, and community organizations in your area.

The Takeaway

If you can qualify for one of the many homebuyer programs in Arizona, or a federal program, you may be able to achieve your goal of purchasing a property, despite housing costs being above the national average. You may also want to look into what commercial lenders offer to see what your options are in terms of covering your down payment, mortgage, and closing costs.