Rhode Island First-Time Home Buying Assistance Programs & Grants for 2025
Rhode Island First-Time Home-Buying Assistance Programs & Grants
(Last Updated – 06/2025)
Rhode Island may be a very small state, but demand for housing is high, and the prices reflect that. The average property value is $487,258, up 5.7% year over year, according to Zillow, vs. the national average of $367,711.
To help with these steep costs, many first-time homebuyers may qualify for assistance with the down payment, mortgage, and closing costs associated with a purchase. A prospective buyer typically must meet certain income, credit score, or professional criteria.
Read on to learn about these programs.
Who Is Considered a First-Time Homebuyer in Rhode Island?
To qualify as a first-time homebuyer in Rhode Island, either you must have never owned a home or you must have not owned a home in the last three years.
As a first-time buyer, there are certain types of mortgage loans you’ll want to familiarize yourself with, as well as various ways to help with financing your down payment and other aspects of your upcoming purchase.
5 Rhode Island Programs for First-Time Homebuyers
If you’re a first-time homebuyer in Rhode Island, you may qualify for one or more of these state programs that provide low-interest mortgage loans and other financial assistance. The state agency that administers them is RIHousing, which helps Rhode Islanders with their homeownership and rental housing concerns.
1. RIHousing: First-Time Homebuyer Loan
RIHousing offers a First-Time Homebuyer Loan
for those purchasing a one- to four-family home or eligible condominium with a maximum price of $838,592.
To qualify, your annual household income must be:
• less than $134,320 for 1 to 2 people
• less than $154,468 for a family of 3 or more
2. RIHousing: Homebuyer Renovation Mortgage/203k Loan
Interested in a fixer-upper? RIHousing offers a Homebuyer Renovation Mortgage that combines the purchase price of the house and renovation costs into one low-interest loan.
The total purchase and renovation costs can’t exceed FHA Maximum Loan Limits, and you must have a construction contract with a state-licensed and insured general contractor. You are required to take a Homebuyer Education class before closing.
3. RIHousing: 15kDPA
Eligible homebuyers can get a 0.00%-interest down payment/closing costs loan of $15,000 through this program. You pay the loan only when you sell the home or transfer it.
To qualify for RIHousing 15kDPA, you must be a first-time homebuyer and have a credit score of 660. You must also meet housing price and income limits and complete a homebuyer education course.
4. RIHousing: Extra Assistance
With the RIHousing Extra Assistance down payment assistance program for first-time homebuyers, you can receive funding for up to 6% of the purchase price or $20,000, whichever is lower. Your primary loan must be through RIHousing, and this second loan will have the same interest rate and a 15-year term. You need a credit score of 620.
5. RIHousing: FirstGenHomeRI
This program is for first-time homebuyers who are also first-generation homebuyers — meaning someone whose parents never owned a home during their lifetime or lost the home due to a foreclosure or short sale. People who lived in foster care also qualify. FirstGenHomeRI provides $25,000 in down payment and closing cost assistance. The interest rate is 0.00% and the loan is forgivable once you’ve lived in the house for five years.
You must have a credit score of 660, meet housing price and income limits, live in certain communities or areas, have a first mortgage through RIHousing, and complete a homebuyer education course.
Recommended: First-Time Home-Buying Guide
How to Apply to Rhode Island Programs for First-Time Homebuyers
The best way to start your application for any of the programs above is to first click on the links and learn more about the programs and qualifications required. Then you can find a participating lender. They will review your finances and other criteria to ensure that you qualify, and they can guide you through the process.
It may also be helpful to use this mortgage calculator to determine what you’d pay each month for your mortgage.
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. Here are some options worth knowing about:
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. Those with low credit scores (between 500 and 579) must put at least 10% down.
A few considerations:
• 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 allow a DTI ratio of up to 57% in some cases, 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: 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. 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.
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.
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.
Unlike an FHA loan, the 97 LTV loan has no upfront mortgage insurance fee and does have cancellable mortgage insurance. The loan is for just one-unit single-family homes, co-ops, condos, and planned unit developments.
Department of Veterans Affairs (VA) Loans
Eligible active-duty members of the military, veterans, reservists, and surviving spouses 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%. In addition, 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 itself is the mortgage lender on NADLs. The VA requires no mortgage insurance, but it does charge a funding fee. For further information, contact [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 as well as income and property eligibility, head to this USDA site .
HUD Good Neighbor Next Door Program
Police officers, firefighters, emergency medical technicians, teachers, and certain other professionals can 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.
First-Time Homebuyer Stats for 2025
• Percentage of buyers who are first-time buyers: 24%
• Average home value in Rhode Island: $487,258
• 3% down payment: $14,618
• 20% down payment: $97,452
• Typical down payment percentage of first-time homebuyers: 9%
• Median household income of first-time homebuyers: $97,000
• Average credit score in Rhode Island: 721
Financing Tips for First-Time Homebuyers
Educate yourself on mortgage basics, learn how to choose mortgage term loans, and then check out this list of tips on how to lower your mortgage payment before you buy your first home.
• 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. 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 buy a house. 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.
Another option: You may 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 longer 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, as part of the mortgage credit certificate program.
However, this program is currently suspended in Rhode Island. You might check the RIHousing website to see if it reopens.
• 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.
Recommended: Home Affordability Calculator
The Takeaway
Rhode Island’s housing market can be pricey, but qualified first-time homebuyers may be able to take advantage of assistance and save. There are state programs that can help with down payment and mortgage costs. And government-backed and conventional loans offer options for future homeowners in the Ocean State as well.
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
Should I take first-time homebuyer classes?
Yes! Good information is key to a successful home-buying experience for anyone, but especially for newcomers, who can easily be overwhelmed by the jargon, technicalities, and magnitude of applying for a mortgage and purchasing a home. First-time homebuyer classes can help. Indeed, they are required for some government-sponsored loan programs.
Do first-time homebuyers with bad credit qualify for homeownership assistance?
Often they do. Many government and nonprofit homeowner assistance programs are available to people with low credit scores. And often, interest rates and other loan pricing are competitive with those of loans available to borrowers with higher credit scores. That said, almost any lending program has credit qualifications. That’s why it’s important to take all possible steps to improve your credit standing before you go house hunting.
Is there a first-time homebuyer tax credit in Rhode Island?
The mortgage credit certificate program for first-time homeowners in Rhode Island is currently suspended.
Is there a first-time veteran homebuyer assistance program in Rhode Island?
Yes. The U.S. Department of Veterans Affairs offers home loans to eligible active-duty members of the military, veterans, reservists, and surviving spouses.
What credit score do I need for first-time homebuyer assistance in Rhode Island?
Credit score requirements vary, depending on the homebuyer assistance program. For example, some of the programs offered by RIHousing require a credit score of 620.
What is the average age of first-time homebuyers in Rhode Island?
While figures specific to Rhode Island are hard to find, the median age of first-time homebuyers in the U.S. is 38.
Photo credit: iStock/DenisTangneyJr
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Qualifying for the reward requires using a real estate agent that participates in HomeStory’s broker to broker agreement to complete the real estate buy and/or sell transaction. You retain the right to negotiate buyer and or seller representation agreements. Upon successful close of the transaction, the Real Estate Agent pays a fee to HomeStory Real Estate Services. All Agents have been independently vetted by HomeStory to meet performance expectations required to participate in the program. If you are currently working with a REALTOR®, please disregard this notice. It is not our intention to solicit the offerings of other REALTORS®. A reward is not available where prohibited by state law, including Alaska, Iowa, Louisiana and Missouri. A reduced agent commission may be available for sellers in lieu of the reward in Mississippi, New Jersey, Oklahoma, and Oregon and should be discussed with the agent upon enrollment. No reward will be available for buyers in Mississippi, Oklahoma, and Oregon. A commission credit may be available for buyers in lieu of the reward in New Jersey and must be discussed with the agent upon enrollment and included in a Buyer Agency Agreement with Rebate Provision. Rewards in Kansas and Tennessee are required to be delivered by gift card.
HomeStory will issue the reward using the payment option you select and will be sent to the client enrolled in the program within 45 days of HomeStory Real Estate Services receipt of settlement statements and any other documentation reasonably required to calculate the applicable reward amount. Real estate agent fees and commissions still apply. Short sale transactions do not qualify for the reward. Depending on state regulations highlighted above, reward amount is based on sale price of the home purchased and/or sold and cannot exceed $9,500 per buy or sell transaction. Employer-sponsored relocations may preclude participation in the reward program offering. SoFi is not responsible for the reward.
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Alaska First-Time Home Buying Assistance Programs & Grants for 2025
Alaska First-Time Home-Buying Assistance Programs & Grants
(Last Updated – 06/2025)
With its breathtaking natural beauty, clean air, and miles and miles of wilderness, Alaska, known as the Last Frontier, is a nature lover’s paradise. And it’s a good place to be looking for a home: As of April 2025, home prices in Alaska were up 3.7% from the year prior. But Alaska’s median home selling price of $385,700 still significantly beats the national median home sale price of $438,357, according to Redfin data.
As a first-time homebuyer in Alaska, you may qualify for a low-interest mortgage or help with the down payment. Here’s what you need to know.
Who Is Considered a First-Time Homebuyer in Alaska?
For a number of the state’s home mortgage loan programs, you’re considered a first-time buyer in Alaska if you haven’t owned a home in the last three years. You may also qualify if you meet U.S. Department of Housing and Urban Development (HUD) requirements, such as being a single parent or a displaced homemaker who has only owned a home with a spouse. Looking for the most budget-friendly spot to settle in this vast state? Check out a list of the best affordable places in Alaska.
2 Alaska Programs for First-Time Homebuyers
Offerings by the Alaska Housing Finance Corporation can give first-time homebuyers access to lower-interest-rate mortgages, or assistance with down payments and closing costs. Start here if you’re looking for different types of mortgage loans with the best interest rates in Alaska.
1. First Home Limited Loans
This program offers lower-interest-rate mortgages to first-time homebuyers. To qualify, you must meet income and purchase price limits and have not owned a home in the past three years, unless the property you plan to buy is within a targeted area or you are a qualified veteran.
• Targeted areas are HUD designated census tracts and have higher income and acquisition cost limits.
• Eligible properties include single-family homes, condominiums, duplexes, and certain manufactured homes.
• A duplex must be five or more years old and occupied for at least the last five years as a multi-family residence.
• Borrowers must read the tax-exempt booklet.
2. First Home Loans
First Home offers mortgages with reduced interest rates to eligible borrowers, but unlike the First Home Limited program, it does not have income or purchase price limits. To qualify, you must not have not owned a primary residence in the past three years.
• Eligible properties include owner-occupied single-family residences, condominiums, duplexes, and certain manufactured homes.
• At least one unit in a duplex must be the borrower’s principal residence.
Both of these AHFC programs offer multiple loan options providing lower interest rates. These include the:
• Affordable Housing Enhanced Loan
• Energy Efficiency Interest Rate Reduction
• Interest Rate Reduction for Low-Income Borrowers
• Energy Efficiency Interest Rate Reduction
• State Veterans’ Preference
You must meet certain income limits and participate in a homebuyer education course. To apply, contact AHFC-approved lender.
How to Apply to Alaska Programs for First-Time Homebuyers
If you’re a first-time home buyer in Alaska and you qualify for one of these programs, reach out to a lender who participates in that program to start your application.
Recommended: First-Time Homebuyer Guide
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 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 allow a DTI ratio of up to 50% in some cases, 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, or formally, the Federal National Mortgage Association, is a publicly traded government-sponsored enterprise that dates back to the Great Depression.
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.
Unlike an FHA loan, the 97 LTV loan has no upfront mortgage insurance fee and does have cancellable mortgage insurance. The loan is for just one-unit single-family homes, co-ops, condos, and planned unit developments.
Department of Veterans Affairs (VA) Loans
Eligible active-duty members of the military, veterans, reservists, and surviving spouses 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 advantage of VA loans 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, head to 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.
For more information, visit the HUD program page.
First-Time Homebuyer Stats for 2025
• Median home sale price in Alaska: $385,600
• 3% down payment: $11,568
• 20% down payment: $77,120
• 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%
• Average credit score in Alaska (vs. average U.S. score of 714): 709
Recommended: Mortgage Prequalification vs. Preapproval
Financing Tips for First-Time Homebuyers
In addition to federal and state government-sponsored lending programs for the first time homebuyer in Alaska, you might want to bone up on mortgage basics like how to choose mortgage term loans and how to lower your mortgage payment. These tips may help.
• 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. 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./p>
• 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.
Recommended: Use this home affordability calculator to see how much home you can afford to buy.
The Takeaway
There is plenty of opportunity for qualified first-time homebuyers in Alaska. The state offers programs that can help with the mortgage and down payment. Plus there are federal and conventional loans available that can assist you in your quest to purchase a home.
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
Should I take first-time homebuyer classes?
First-time homebuyer classes are required for some government-sponsored loan programs. And for everyone else, this experience is a great way to get acquainted with the home-buying process before you dive into your search in earnest.
Do first-time homebuyers with bad credit qualify for homeownership assistance?
Yes, often they do. Many government and nonprofit homeowner assistance programs are available to people who don’t have the highest credit scores. And often, interest rates and other loan pricing are competitive with those of loans available to borrowers with higher credit scores. That said, almost any lending program has credit qualifications. That’s why it’s important to take all possible steps to improve your credit standing before you go house hunting.
Is there a first-time homebuyer tax credit in Alaska?
No there isn’t, although the state does offer assistance for first-time homebuyers through several AHFC programs. Both offer lower interest rates and potential help with down payments. A federal first-time homebuyer tax credit, like one for $15,000 proposed by former President Joe Biden in the 118th Congress of 2023-2024, has not been enacted.
Is there a first-time veteran homebuyer assistance program in Alaska?
First-time veteran homebuyers can get help through the AHFC’s Veterans Mortgage Program, including a 1% interest rate deduction on the first $50,000 of the loan. Also, the U.S. Department of Veterans Affairs (VA) offers no-down-payment VA loans with no monthly MIP, and interest rates that are often lower than those on conventional loans.
What credit score do I need for first-time homebuyer assistance in Alaska?
Credit score requirements vary, depending on the homebuyer assistance program. For example, if you have a credit score of 580 or higher, you may qualify for a lower interest rate on an FHA loan.
What is the average age of first-time homebuyers in Alaska?
The average age of a first-time homebuyer has increased to 38, according to data from the National Association of Realtors®.
Photo credit: iStock/toddmedia
SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.
*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.
External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.
Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.
¹FHA loans are subject to unique terms and conditions established by FHA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. FHA loans require an Upfront Mortgage Insurance Premium (UFMIP), which may be financed or paid at closing, in addition to monthly Mortgage Insurance Premiums (MIP). Maximum loan amounts vary by county. The minimum FHA mortgage down payment is 3.5% for those who qualify financially for a primary purchase. SoFi is not affiliated with any government agency.
†Veterans, Service members, and members of the National Guard or Reserve may be eligible for a loan guaranteed by the U.S. Department of Veterans Affairs. VA loans are subject to unique terms and conditions established by VA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. VA loans typically require a one-time funding fee except as may be exempted by VA guidelines. The fee may be financed or paid at closing. The amount of the fee depends on the type of loan, the total amount of the loan, and, depending on loan type, prior use of VA eligibility and down payment amount. The VA funding fee is typically non-refundable. SoFi is not affiliated with any government agency.
Qualifying for the reward requires using a real estate agent that participates in HomeStory’s broker to broker agreement to complete the real estate buy and/or sell transaction. You retain the right to negotiate buyer and or seller representation agreements. Upon successful close of the transaction, the Real Estate Agent pays a fee to HomeStory Real Estate Services. All Agents have been independently vetted by HomeStory to meet performance expectations required to participate in the program. If you are currently working with a REALTOR®, please disregard this notice. It is not our intention to solicit the offerings of other REALTORS®. A reward is not available where prohibited by state law, including Alaska, Iowa, Louisiana and Missouri. A reduced agent commission may be available for sellers in lieu of the reward in Mississippi, New Jersey, Oklahoma, and Oregon and should be discussed with the agent upon enrollment. No reward will be available for buyers in Mississippi, Oklahoma, and Oregon. A commission credit may be available for buyers in lieu of the reward in New Jersey and must be discussed with the agent upon enrollment and included in a Buyer Agency Agreement with Rebate Provision. Rewards in Kansas and Tennessee are required to be delivered by gift card.
HomeStory will issue the reward using the payment option you select and will be sent to the client enrolled in the program within 45 days of HomeStory Real Estate Services receipt of settlement statements and any other documentation reasonably required to calculate the applicable reward amount. Real estate agent fees and commissions still apply. Short sale transactions do not qualify for the reward. Depending on state regulations highlighted above, reward amount is based on sale price of the home purchased and/or sold and cannot exceed $9,500 per buy or sell transaction. Employer-sponsored relocations may preclude participation in the reward program offering. SoFi is not responsible for the reward.
SoFi Bank, N.A. (NMLS #696891) does not perform any activity that is or could be construed as unlicensed real estate activity, and SoFi is not licensed as a real estate broker. Agents of SoFi are not authorized to perform real estate activity.
If your property is currently listed with a REALTOR®, please disregard this notice. It is not our intention to solicit the offerings of other REALTORS®.
Reward is valid for 18 months from date of enrollment. After 18 months, you must re-enroll to be eligible for a reward.
SoFi loans subject to credit approval. Offer subject to change or cancellation without notice.
The trademarks, logos and names of other companies, products and services are the property of their respective owners.
SOHL-Q225-209
Kansas First-Time Home Buying Assistance Programs for 2025
Kansas First-Time Home-Buying Assistance Programs & Grants
(Last Updated – 06/2025)
Though their housing market is generally known for being more affordable than most, first-time homebuyers in Kansas have faced a slight rise in housing prices over the last year. Inventory is low. And in some markets the competition for available homes can be fierce.
According to Redfin, the median selling price of a home in Kansas was $288,700 in April 2025, a 7.5% increase in 12 months. In some areas, such as Lenexa, Salina, and Leawood, the price increases were greater than 12%.
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.
Recommended: First-Time Homebuyer Guide
Who Is Considered a First-Time Homebuyer in Kansas?
The definition of first-time homebuyer is broader than many think. For most programs offered in Kansas and elsewhere, applicants are considered first-time homebuyers if they haven’t owned a home for the past three years. If you’re looking for a home mortgage loan, as virtually all first-time buyers are, they’re worth a look.
3 Kansas Programs for First-Time Homebuyers
There are three statewide programs for first-time homebuyers in Kansas who might need help with obtaining an affordable loan and/or coming up with a down payment.
The programs were established to assist low- to moderate-income buyers, which means participants must meet certain income limits as well as other financial requirements. There also may be purchase price limits.
Statewide programs include:
1. Kansas Housing Resources Corporation First-Time Homebuyer Program
The Kansas Housing Resources Corporation First-Time Homebuyer Program offers income-eligible applicants a no-payment second mortgage to help cover their down payment and closing costs. The loan is completely forgiven after 10 years if the home remains the buyer’s primary residence. It’s available in 18 Kansas counties (but not in Topeka, Lawrence, Wichita, Kansas City, and Johnson County).
Benefits and qualifications include:
• If borrowers remain in the home as their principal residence for 10 years, the loan is forgiven
• Assistance amount is income-based (20% of purchase price if household income is 50% or less of area median income; 15% of purchase price if household income is between 50% and 80% of area median income)
• Available to eligible first-time homebuyers, displaced homemakers, single parents who have full or joint custody, and some mobile home owners
• No minimum credit score, but must be approved for 30-year first mortgage (conventional, FHA, VA, or USDA)
• Buyers must contribute at least 1% (but no more than 10%) of home’s purchase price from their own funds
• Home cannot exceed purchase price limits ($209,000 in most counties)
You can check out the program’s brochure or call 785-217-2044 with questions.
A participating lender can help you get started.
2. KansasDPA Program
The KansasDPA Program offers qualifying first-time and repeat homebuyers a 30-year fixed-rate mortgage paired with a grant for their down payment or closing costs. Borrowers can choose from several different first mortgage types, including conventional, FHA, VA, and USDA loans.
Benefits and qualifications include:
• A forgivable loan for a percentage of the purchase price based on first mortgage type
• Most home types qualify, including single-family detached homes, duplexes (one unit must be owner-occupied), condominiums, townhomes, and manufactured homes
• Available for new and existing homes
• Income generally cannot exceed $133,420, though the number is higher in select counties
• Minimum credit score of 640
To find the name of a participating lender or see if your lender offers the KansasDPA, you can call 720.673.3948 or 720.673.3955.
3. Homeownership Set-Aside Program
FHLBank Topeka runs the Homeownership Set-Aside Program to assist very low-, low-, and moderate-income first-time homebuyers with their down payment, closing costs, and repair costs. The assistance comes in the form of a five-year forgivable grant. Buyers must repay the grant if they sell their home or refinance their first mortgage within five years.
Benefits and Qualifications Include:
• Grant of $2,500 to $15,000
• Available to FHLBank mortgage customers only
• Household income cannot exceed 80% of area median income
• Reservations accepted on a first-come, first-served basis; subject to FHLBank member limits through May 1, 2025
More information: Go to Homeownership Set-Aside Program (fhlbtopeka.com) or call 866-571-8155.
To apply, contact an FHLBank member.
Recommended: Understanding Mortgage Basics
Other Kansas Homebuyer Programs by Location
If you’ve already decided which Kansas community you’d like to make your home, you may also want to research local first-time homebuyer assistance programs.
Even if you can’t find assistance in your chosen location, it may be helpful to check back occasionally for new offers. Some first-time homebuyer programs base their opportunities (and deadlines) on the funds they expect to become available. If their funding runs out, they may press pause. Local programs include:
City of Leavenworth Home Ownership Program
Leavenworth’s Home Ownership Program provides up to $8,000 in grant funding for first-time buyers purchasing a home in the city. The program is funded through a Community Development Block Grant administered through the U.S. Department of Housing and Urban Development (HUD) and is therefore subject to federal guidelines and rules. For information about the program, you can check out the web page .
City of Topeka Opportunity to Own (TOTO) Program
Topeka’s Department of Neighborhood Relations Housing Services Division administers the TOTO first-time homebuyer assistance program. The program, which was created to help low-income families purchase their first home in the city, provides homebuyer counseling and education as well as down payment assistance and money to help with home repairs.
For information on qualifications and benefits, check out the program’s website . Or contact Housing and Credit Counseling Inc. at 785-234-0217.
City of Wichita HOMEownership 80 Program
Wichita’s HOMEownership 80 Program provides assistance to qualified low- to moderate-income first-time buyers purchasing newly constructed single-family homes developed by its community housing development organizations. The program offers a 0% interest, deferred-payment second loan for a down payment and closing costs. For more information on benefits and eligibility requirements, you can go to the program’s web page .
How to Apply to Kansas Programs for First-Time Homebuyers
Follow the links under each program for participating lenders or other contacts.
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. Those with scores as low as 500 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 allow a DTI ratio of up to 57% in some cases, 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: 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. 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. 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.
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.
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
Eligible active-duty members of the military, veterans, reservists, and surviving spouses 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. You can learn 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.
First-Time Homebuyer Stats for 2025
Ever wonder where you fit amid the mix of buyers who are out there shopping for their first home or first in a while? Here are some stats:
• Percentage of buyers nationwide who are first-time buyers: 24%
• Median age of first-time homebuyers: 38
• Median home price in Kansas: $288,700
• Median gross rent: $1,029 per month
• 66.9% of Kansas housing units were owner-occupied
• Average credit score in Kansas: 722
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. 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 longer 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
Income-qualified first-time homebuyers in Kansas have a number of mortgage and down payment assistance options to aim for. Other first-time buyers in Kansas can shop for a fitting mortgage on their own.
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
Should I take first-time homebuyer classes?
First-time homebuyer classes are required for many government-sponsored loan programs. And even if you aren’t seeking a government-sponsored loan, a class can demystify the homebuying process and smooth your path to finding a home and applying for a mortgage.
Do first-time homebuyers with bad credit qualify for homeownership assistance?
Yes, in many cases they do. Government and nonprofit homeowner assistance programs are available to people with low credit scores. And often, interest rates and other loan pricing are competitive with those of loans available to borrowers with higher credit scores. That said, almost any lending program has credit qualifications.
What credit score do I need for first-time homebuyer assistance in Kansas?
There is no minimum credit score requirement for the Kansas Housing Resources Corporation First-Time Homebuyer Program. The minimum score for the KansasDPA Program is 640. Requirements may vary from one local program to the next, and some may use criteria other than credit scores to determine a borrower’s eligibility.
Is there a first-time homebuyer tax credit in Kansas?
No. The Kansas Housing Resources Corporation doesn’t offer a mortgage credit certificate program at this time.
Is there a first-time veteran homebuyer assistance program in Kansas?
The Kansas Housing Resources Corporation First-Time Homebuyer Program and Kansas DPA Program offer a VA loan to eligible borrowers.
What is the average age of first-time homebuyers?
The median age is 38, according to the National Association of Realtors®.
Photo credit: iStock/TriggerPhoto
SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.
*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.
External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.
Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.
¹FHA loans are subject to unique terms and conditions established by FHA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. FHA loans require an Upfront Mortgage Insurance Premium (UFMIP), which may be financed or paid at closing, in addition to monthly Mortgage Insurance Premiums (MIP). Maximum loan amounts vary by county. The minimum FHA mortgage down payment is 3.5% for those who qualify financially for a primary purchase. SoFi is not affiliated with any government agency.
†Veterans, Service members, and members of the National Guard or Reserve may be eligible for a loan guaranteed by the U.S. Department of Veterans Affairs. VA loans are subject to unique terms and conditions established by VA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. VA loans typically require a one-time funding fee except as may be exempted by VA guidelines. The fee may be financed or paid at closing. The amount of the fee depends on the type of loan, the total amount of the loan, and, depending on loan type, prior use of VA eligibility and down payment amount. The VA funding fee is typically non-refundable. SoFi is not affiliated with any government agency.
Checking Your Rates: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.
Qualifying for the reward requires using a real estate agent that participates in HomeStory’s broker to broker agreement to complete the real estate buy and/or sell transaction. You retain the right to negotiate buyer and or seller representation agreements. Upon successful close of the transaction, the Real Estate Agent pays a fee to HomeStory Real Estate Services. All Agents have been independently vetted by HomeStory to meet performance expectations required to participate in the program. If you are currently working with a REALTOR®, please disregard this notice. It is not our intention to solicit the offerings of other REALTORS®. A reward is not available where prohibited by state law, including Alaska, Iowa, Louisiana and Missouri. A reduced agent commission may be available for sellers in lieu of the reward in Mississippi, New Jersey, Oklahoma, and Oregon and should be discussed with the agent upon enrollment. No reward will be available for buyers in Mississippi, Oklahoma, and Oregon. A commission credit may be available for buyers in lieu of the reward in New Jersey and must be discussed with the agent upon enrollment and included in a Buyer Agency Agreement with Rebate Provision. Rewards in Kansas and Tennessee are required to be delivered by gift card.
HomeStory will issue the reward using the payment option you select and will be sent to the client enrolled in the program within 45 days of HomeStory Real Estate Services receipt of settlement statements and any other documentation reasonably required to calculate the applicable reward amount. Real estate agent fees and commissions still apply. Short sale transactions do not qualify for the reward. Depending on state regulations highlighted above, reward amount is based on sale price of the home purchased and/or sold and cannot exceed $9,500 per buy or sell transaction. Employer-sponsored relocations may preclude participation in the reward program offering. SoFi is not responsible for the reward.
SoFi Bank, N.A. (NMLS #696891) does not perform any activity that is or could be construed as unlicensed real estate activity, and SoFi is not licensed as a real estate broker. Agents of SoFi are not authorized to perform real estate activity.
If your property is currently listed with a REALTOR®, please disregard this notice. It is not our intention to solicit the offerings of other REALTORS®.
Reward is valid for 18 months from date of enrollment. After 18 months, you must re-enroll to be eligible for a reward.
SoFi loans subject to credit approval. Offer subject to change or cancellation without notice.
The trademarks, logos and names of other companies, products and services are the property of their respective owners.
SOHL-Q225-223
How Much Do You Need to Retire? Here’s the Truth
This article appeared in SoFi's On the Money newsletter. Not getting it? Sign up here.
How much money will you need to save to retire comfortably?
It’s one of life’s big question marks, and over half of Americans worry they’ll outlive their savings, according to a recent survey from The Harris Poll and Northwestern Mutual.
Without a crystal ball, there’s no way of knowing for sure, no matter how diligently you’re socking money away. Your future health, the rate of inflation, and the stock market are just a few of the variables.
But you can increase the odds of a secure retirement by planning ahead. And there’s plenty you do know — about your lifestyle, your goals and how you’ll define “retirement.” Want to travel the world or stay close to home? Do you have a pension? Are you planning to downsize your home? Will you work part-time?
There’s no one way to estimate what you’ll need, especially with so many variables at play. But here are a few common rules of thumb to help:
1. 10 Times Your Salary: Save at least 10 times your salary by the time you retire. And there are benchmarks by age: By 30, you’ll want to have one year’s salary saved. By 40, 3x your salary. By 50, 6x. And by 60, 8x. Unfortunately, many getting closer to retirement age don’t have nearly enough, by this measure. According to the Northwestern Mutual survey, 52% of Gen Xers with retirement savings have just 3x their income or less — not even close to the 10x recommended by age 67.
2. The 80% Rule: Save enough to have 80% of your pre-retirement income each year of your retirement. So if you earn $100,000 a year, that means having enough on hand to draw down about $80,000 a year in retirement. Why not 100%? Although healthcare and inflation may add to your expenses, the theory is that you’ll need less once you’re not saving for retirement, commuting to work, and so on. Of course, this rule doesn’t help you estimate a total figure.
3. The 4% Rule: Estimate the amount you expect to spend in a typical retirement year and divide it by .04. For example, if you foresee $80,000 in expenses, you’ll need to save $2 million.
So what? There’s no magic retirement number or one-size-fits-all retirement plan. But there are smart habits that underscore every method of calculating: Save early, save often and give compound returns the best chance of building wealth by investing in a tax-advantaged retirement savings fund such as a 401(k) or IRA.
Related Reading
The 4% Rule for Retirement May Change: How Will This Affect Your Spending? (GOBankingRates)
How Many People Retire With $1 Million or More in Their Retirement Account? The Number Might Surprise You (Investopedia)
Retirement Quiz: Are You Prepared for Retirement? (SoFi)
Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
SoFi isn't recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.
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The Stealth Retirement Account You Should Know About
This article appeared in SoFi's On the Money newsletter. Not getting it? Sign up here.
Quick pop quiz: Which of these three statements about Health Savings Accounts is accurate?
• You should use your HSA money before you leave a job so you don’t lose it.
• If you contribute more than you’ll need for medical care, you’ll have to pay a penalty to use it.
• You’re going to have to pay taxes on your HSA money at some point.
If you said none of them, you’re right! But chances are someone you know would be wrong about at least one, given how easily misunderstood these accounts can be.
Here’s the thing: HSAs can become powerful investment vehicles — if they’re not overlooked. Their unique tax advantages, combined with their longevity and portability, can make them a smart way to save for the short-term or long-term. And if you use the money in retirement, you’ll have the flexibility to spend it on more than healthcare.
“HSAs are probably one of the best-kept secrets in the financial planning world,” says Brian Walsh, a Certified Financial Planner® and SoFi’s Head of Advice & Planning. “Most of us will have plenty of healthcare expenses in retirement, but if you’re lucky enough not to, you can use the money just like you would another retirement account.”
So what do you need to know? Here’s more on how HSAs work, when to use them, and what will maximize their potential.
Who’s Eligible for an HSA?
First off, in order to contribute to an HSA, you need to be covered by health insurance that’s been designated as a high-deductible health insurance plan, or HDHP, and it must be your only plan. In 2024, that was half of all private-sector workers participating in employer health plans, according to the Bureau of Labor Statistics.
Medicare and Medicaid don’t qualify, though Congress is weighing legislation that would allow people with Medicare Part A (and certain Obamacare plans) to use them too.
As the high-deductible part of the name suggests, HDHPs have higher out-of-pocket costs than other plans, so they’re not for everyone. (The median deductible for an HDHP in 2024 was $2,750, according to the BLS.) But they typically have lower premiums than other plans, so if you don’t anticipate a lot of health issues, they can be a more affordable option.
Then there’s getting the HSA.
Last year Americans had an estimated 61% of their 39 million HSA accounts through a job, according to research by Devenir, which operates an HSA investment platform.
But if your employer doesn’t offer one — or you’re self-employed — you can open an HSA yourself through any bank, brokerage or other provider that offers them.
Much like an IRA, each company’s HSA will have different investment options, though you may have to reach a certain balance before you can invest the money. (More on that later.)
The Triple Tax Advantage
Now to why HSAs are such powerhouses: If you use the money you put into an HSA for qualifying medical expenses, you won’t pay federal income tax on any of it — ever. Not on the money you put into the account, or on any investment gains, or on the money you spend for medical care.
In other words, unlike other tax-advantaged accounts like 401(k)s or traditional IRAs — where you’ll usually pay income tax once you’re retired and spending your money — you can avoid tax altogether as long as you use the money for healthcare. And that’s a valuable perk.
Let’s say you normally pay 25% in income taxes, so for every $100 you earn, you walk away with $75. That means a $150 doctor’s visit effectively costs you $200 of your pre-tax income.
But let’s say you put that $200 into an HSA. Then you’d cover that same doctor’s visit and still have $50 left to put toward a future visit. And if you don’t need the $200 right away and invest it in a mutual fund, for example, you could potentially earn even more — perhaps an extra $20 over a year, depending on the return.
How to Use HSAs to Save for Retirement
Before you turn 65, if you use your HSA money for something besides eligible healthcare, you will usually have to pay income tax on it plus a 20% penalty.
But an HSA balance doesn’t have to be used within a particular timeframe. And as we age, our healthcare costs are likely to increase, so it can make sense to build an HSA for use in retirement.
Healthcare and medical expenses are estimated to cost the average American $165,000 over their retirement, according to Fidelity Investments’ latest estimates, which were based on a person who retired at 65 last year.
Plus — and this is important — if you don’t wind up needing the funds in your HSA for healthcare, the 20% penalty is waived once you reach 65.
You’ll still owe income taxes on any withdrawals you make for ineligible expenses, but that’s no different than you would with many retirement accounts.
In other words, you might think of an HSA as more of a retirement account with a tax-free health care benefit.
A Cool Twist
Now, here’s something many are surprised to learn. Even if an HSA accountholder has eligible healthcare or medical expenses in the short-term, there’s nothing that says they have to use their HSA money for that purpose. If you can afford to cover those bills out of pocket, you can think of it as a retirement fund and just contribute regularly to an invested balance that will hopefully grow.
Why would you want to do that? Because you can reimburse yourself from your HSA decades after you open it — there is no time limit. So if you wait until you’re retired to reimburse yourself, you not only give your balance more time to grow, but can pay for non-medical items with your tax-free reimbursements.
In other words, that sunscreen you bought in 2010 could help fund your around-the-world retirement cruise trip in 2050, assuming you keep the receipt. Let that one sink in.
Factors to Weigh
Of course, no single strategy is right for everyone, so you’ll want to explore all the rules and weigh your circumstances before making any decisions about using an HSA. It may be helpful to consult a financial planner too. Here are a few important considerations.
• The contribution limits for HSAs tend to be lower than for other designated retirement accounts, so you may want to think of them as a valuable addition to your retirement savings strategy. In 2025, you can contribute up to $4,300 to your HSA ($8,550 if you have family coverage.)
• On the other hand, the HSA is the only type of account with a triple tax advantage, and unlike a Roth IRA, you can contribute no matter what your income level.
• Many employers will contribute to HSAs as a workplace perk. Last year the average contribution was $927, according to Devenir.
• Contributions lower your taxable income, though your tax benefit can work in two ways. If you have an account with your job, your employer will funnel your pretax contributions straight from your paycheck, much like a 401(k). If you have an HSA on your own, you’ll contribute post-tax dollars that will be deductible on your tax return.
• Many people use their HSAs as savings tools rather than wealth-building tools, in part because of a lack of awareness. Only 15% of accountholders invest their HSAs in assets other than cash, according to a recent analysis of 14 million HSAs by the Employee Benefit Research Institute.
• Like any investment account, there are risks involved. You’ll want to consider your risk tolerance (and the trade-offs of potentially losing money) before you invest any part of your balance.
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