Who Is Considered a First-Time Homebuyer in Iowa?

The IFA defines a first-time homebuyer as someone who has not owned a primary residence in the past three years. This conforms with the federal definition cited by the U.S. Department of Housing and Urban Development (HUD).

Keep in mind that there are exceptions for veterans, as well as those seeking to purchase a home in targeted areas under the IFA’s FirstHome program.

💡 Quick Tip: Want the comforts of home and to feel comfortable with your home loan? SoFi has a simple online application and a team dedicated to closing your loan on time. No surprise SoFi has been named a Top Online Lender in 2024 by LendingTree/Newsweek.

5 Iowa Programs for First-Time Homebuyers

The IFA offers two major homebuyer assistance programs geared toward helping both repeat and first-time homebuyers. Benefits are offered in the form of competitive mortgage rates, grants, and deferred loans.

You can use the IFA’s eligibility checker to see whether you qualify for benefits.

1. FirstHome Program

The FirstHome Program offers below-market interest rates on mortgages that may require just 3% down and may include reduced mortgage insurance.

The mortgage can be paired with a FirstHome grant or second mortgage.

While eligibility for FirstHome program benefits are generally limited to first-time homebuyers, military members (who have a discharge other than dishonorable and have not used a similar program) may be able to skip this requirement, as well as buyers of homes in targeted disadvantaged areas.

•   Household income limit: Generally should not exceed $134,550, but the limit varies by county.

•   Home purchase price limit: $510,000 for non-targeted areas; $624,000 in targeted areas.

•   Primary residence: Buyer must intend to occupy home as primary residence within 60 days of closing.

•   Minimum FICO^® credit score: 640

•   Debt-to-income (DTI) ratio: cannot exceed 50%

A homebuyer education course is required for borrowers taking out conventional loans, which will help participants understand the whole buying process and types of mortgage loans.

2. Homes for Iowans

First-time and repeat homebuyers who obtain a mortgage under the Homes for Iowans program will benefit from lower mortgage fees and credit score does not impact the interest rate.

The program has more liberal home price and household income limits than FirstHome.

•   Household income limit: Generally should not exceed $163,800

•   Home purchase price limit: $624,000

•   Primary residence: Buyer must intend to occupy home as primary residence within 60 days of closing.

•   Minimum FICO^® credit score: 640 (with options for those without credit scores)

•   Debt-to-income (DTI) ratio: cannot exceed 50%

3. Down Payment and Closing Costs Programs

The IFA’s two mortgage programs can be married with down payment and closing costs programs . Specifically, borrowers may qualify for either a $2,500 grant or a loan of up to 5% of the purchase price (repayable if the home is sold or refinanced, or the first mortgage is paid off) to help with a down payment or closing costs.

Eligibility requirements for both the FirstHome and Homes for Iowans down payment assistance programs include income and home purchase price limits.

Your lender will help you qualify for the grant or loan as part of your application process.

4. Military Down Payment Program

This program offers a $5,000 grant to eligible homebuyers to cover a down payment and closing costs. The Military Homeownership Assistance is geared toward eligible veterans, active-duty service members, and surviving spouses using a FirstHome or Homes for Iowans mortgage.

The program is subject to funding availability, so it’s a good idea to ask your mortgage lender to check whether the funding status of either program has changed.

5. Local Assistance

City and county programs also exist to boost homeownership. Check the page kept by HUD.

How to Apply to Iowa Programs for First-Time Homebuyers

Above, there are links to the programs mentioned so you can learn more about eligibility. Regardless of which IFA program you pick, you’ll need to make sure you contact an approved mortgage lender to start your loan application.

Once your lender has verified that you meet the minimum program requirements, you may be asked to complete a homebuyer education course. Homebuyer education is required for all conventional mortgage loans and must be completed before closing.

Your mortgage lender will guide you through the necessary steps to take until you’re ready to close.

Recommended: Guide to First-Time Home Buying

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 US 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. Here are details on this 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.

•   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% to 50% maximum for a conventional loan.

•   Gift money for the down payment is allowed from some 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.

◦   Example: 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.

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. For more details, 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 and income and property eligibility, head to this USDA website .

HUD Good Neighbor Next Door Program

Police officers, firefighters, emergency medical technicians, and teachers can get help qualifying for mortgages in the areas they serve with the HUD Good Neighbor Next Door Program . 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.

Iowa First-Time Homebuyer Stats for 2025

Here’s a snapshot of Iowa homebuyers:

•   Average home value: $227,579

•   Change year over year: 3.9%

•   3% down payment: $6,827.37

•   20% down payment: $45,515.80

•   Average credit score: 730 (vs. 715 nationwide)

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 cut into 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 in Iowa may qualify to claim a portion of their mortgage interest as a tax credit, up to 50% of the interest paid at a $2,000 cap. However, funding is not available as of this writing. It can be wise to check if the Iowa mortgage credit certificate gets additional funding when you are ready to purchase a property.

•  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

First-time homebuyers in Iowa may qualify for down payment, mortgage, and closing costs assistance through a state or local program. Other first-time buyers can look into the array of available mortgages as well to find the right fit.

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

By Susan Guillory

(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.

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

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.

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.