Current Mortgage Rates in Portland, OR Today
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Compare mortgage rates in Portland.
Key Points
• Mortgage rates in Portland, Oregon are influenced by economic factors and borrower financial status.
• Fixed-rate mortgages offer the stability of unchanging payments, while adjustable-rate mortgages (ARMs) have fluctuating rates.
• With an FHA loan, you can get started with just a 3.5% down payment if your credit score is 580 or above.
• First-time homebuyers in Oregon have access to a variety of assistance programs to help them afford a home.
• Understanding mortgage rates in Oregon can help you make informed decisions about homeownership.
Introduction to Mortgage Interest Rates
Mortgage rates in Portland are a big part of the home-buying process for many people. In this guide, we’ll help you understand how home loan rates are set by lenders, and what you can do to get the lowest rate possible. We’ll talk about the big-picture economic factors that influence rates, as well as some personal financial factors that can affect the rate you get. And we’ll wrap up with some practical tips for getting the best deal on your mortgage.
Mortgage interest rates are the fees charged by lenders for borrowing money to purchase a home. These mortgage rates are determined by a complex combination of factors that can be separated into two buckets: the state of the economy and the borrower’s financial status.
Where Mortgage Rates Come From
Rates on the 10-year U.S. Treasury Note are perhaps the most closely watched indicator of where mortgage rates in Oregon are headed. If the yield on the 10-year T note is moving higher, mortgage rates are likely to follow. The overall performance of the housing market in Oregon and the rate of inflation in the state will also play a role in determining the mortgage rates that you will be offered.
But your own financial stats are also used by lenders as they decide what rate and terms to offer on your loan. For a conventional mortgage (one not backed by a government agency), lenders look for a credit score of at least 620. Another important number is your debt-to-income (DTI) ratio: 36% is the magic number there. Exceed it and many lenders will worry about your debt levels. Finally, your down payment amount will be an important barometer for lenders as well. All of these factors come together to paint a picture for the lender of the potential risk or reward in granting you a mortgage. (The type of mortgage loan term you choose also contributes to the interest rate you’re offered — more on that below.)
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First-Time Homebuyer Guide
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First-Time Homebuyer Programs and Loans
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Mortgage Preapproval Process
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Current Mortgage Rates in Winston Salem, NC Today
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Compare mortgage rates in Winston Salem, North Carolina.
Key Points
• Check your credit report and credit score before you apply for a mortgage.
• Think about a larger down payment to lower your interest rate and avoid private mortgage insurance.
• Explore fixed-rate loans, which have the same monthly payment for the life of the loan, and adjustable-rate mortgages (ARMs), which have rates that can rise or fall with market conditions.
• Keep an eye on the 10-Year Treasury Bond to anticipate interest rate changes and help choose the best time to lock in a mortgage rate.
• Take advantage of local and federal programs for first-time homebuyers to receive help with a down payment and closing costs.
• Compare offers from multiple lenders, and pay attention to the APR (annual percentage rate), which includes fees.
Introduction to Winston Salem Mortgage Interest Rates
Mortgage interest rates are a big deal, as you may gather from their frequent appearance in the news. But why? Because they greatly impact the overall cost of homeownership for buyers like you. This guide is designed to help you understand how mortgage rates in Winston Salem, North Carolina, are determined, and more important, how you can secure the lowest rate available to you. We’ll explore the factors that influence these rates and provide practical tips to get the best deal possible when securing a mortgage for your dream home.
First-time homebuyer programs usually consider anyone who hasn’t owned a home in the previous three years to be a “first-timer.” If you think you might qualify as a first-time homebuyer, you could enjoy special benefits such as lower down payment minimums, grants, and closing cost assistance.
Where Mortgage Rates Come From
Whether buying your first home or a seasoned homeowner, how mortgage rates are set can be a bit of a mystery. Rates are typically influenced by a number of economic factors, along with the borrower’s financial status and credit history. Let’s break it down:
Economic Factors Influencing Mortgage Rates
• The bond market, particularly the 10-year U.S. Treasury Note, has historically been a good indicator of where mortgage rates are headed. When the interest rates on the note rise, mortgage rates tend to head in the same direction.
• The health of the housing market also plays a role. When the housing market cools and more homes are available than there are buyers, lenders may lower rates to keep attracting customers.
• The overall economy contributes to the mortgage rate you’ll be offered. When the economy is strong, mortgage rates tend to rise, reflecting the potential for increased demand for borrowing and potentially higher costs for lenders providing loans to consumers. A recession is usually accompanied by lower mortgage rates.
Borrower Factors Influencing Mortgage Rates
• Your credit score is a significant predictor of the rate you’ll be offered. The higher the score, the lower the rate you’ll likely obtain.
• The amount of your down payment plays into lender decisions. Making a larger down payment can result in a lower interest rate because borrowers who have more equity in their newly purchased property are perceived as a lower default risk by the lender.
• Your debt-to-income (DTI) ratio is also important. Lenders will look at your income in relation to your monthly debts. In general, mortgage lenders like to see a DTI ratio of no more than 36%.
How Interest Rates Affect Home Affordability
Interest rates are a big deal when you’re buying a home in today’s market. The median home value in Winston-Salem is $257,000, according to Zillow, so it’s not unusual for a buyer to borrow more than $200,000.
At a 6.50% interest rate, your monthly payment would be $1,264. But if the rate was 7.00%, your payment would jump to $1,330. Over the full 30-year term, the lower rate would save you almost $24,000 in interest. That’s money that could go toward a healthy emergency fund or a car payment. That’s why it’s so important to get the best mortgage rates you possibly can.
| Interest Rate | Monthly Payment | Total Interest |
|---|---|---|
| 6.00% | $1,199 | $231,677 |
| 6.50% | $1,264 | $255,085 |
| 7.00% | $1,330 | $279,021 |
| 7.50% | $1,398 | $303,403 |
| 8.00% | $1,467 | $328,309 |
Winston Salem Mortgage Rate Trends
Historical U.S. Mortgage Rates
When you’re in the market for a home loan in Winston Salem, it helps to have perspective on historical mortgage rates. The line chart shows how much rates have fluctuated over the last 50 years. The table compares North Carolina’s average fixed rate to the national average in recent decades. (The Federal Housing Finance Agency stopped compiling this data after 2018.)
| Year | North Carolina Rate | U.S. Rate |
|---|---|---|
| 2000 | 7.88 | 8.14 |
| 2001 | 6.87 | 7.03 |
| 2002 | 6.43 | 6.62 |
| 2003 | 5.72 | 5.83 |
| 2004 | 5.76 | 5.95 |
| 2005 | 5.93 | 6.00 |
| 2006 | 6.49 | 6.60 |
| 2007 | 6.32 | 6.44 |
| 2008 | 5.99 | 6.09 |
| 2009 | 4.96 | 5.06 |
| 2010 | 4.74 | 4.84 |
| 2011 | 4.49 | 4.66 |
| 2012 | 3.61 | 3.74 |
| 2013 | 3.80 | 3.92 |
| 2014 | 4.14 | 4.24 |
| 2015 | 3.90 | 3.91 |
| 2016 | 3.73 | 3.72 |
| 2017 | 4.02 | 4.03 |
| 2018 | 4.58 | 4.57 |
Should You Wait for Interest Rates to Drop?
If you’re looking to purchase your first home in Winston Salem, you might be wondering if you should hold off and wait for interest rates to dip. Predictions point to mortgage rates in North Carolina staying fairly steady in the near future. The average rate for a 30-year fixed mortgage is expected to end 2025 around 6.30%, and the outlook for 2026 doesn’t foresee much change.
For many aspiring homebuyers, waiting several years for a rate drop just isn’t in the cards. Instead, weigh your personal financial goals and readiness to purchase. Plus, remember that you can always consider a mortgage refinance down the line if rates do happen to fall.
Cost of Living in Winston Salem
Winston Salem is a place where your dollar stretches a little further. The average home value is $257,000 — well below the national average of $361,000. The overall cost of living in Winston Salem also contributes to how well you can fit mortgage payments into your budget. At 93.4, the city is more affordable than many other cities in the state, and below the national average.
Here’s how Winston Salem compares to other North Carolina cities on an index where 100 equals the average cost of living in the U.S.
| North Carolina City | Cost of Living |
|---|---|
| Asheville | 102.7 |
| Chapel Hill | 104.4 |
| Charlotte | 98.9 |
| Durham | 98.5 |
| Raleigh | 97.2 |
| Salisbury | 91.2 |
| Winston Salem | 93.4 |
Recommended: The Best Affordable Places in the U.S.
How to Get Your Best Possible Rate in Winston Salem
To secure the best mortgage rate in Winston Salem, focus on improving your credit score, which plays a vital role in the interest rate you’ll qualify for. Lowering your debt-to-income (DTI) ratio is also beneficial, along with increasing your down payment amount.
Additionally, consider going through the mortgage preapproval process, exploring different types of mortgages available to you, and comparing offers from multiple lenders to find the most favorable mortgage rates in Winston Salem.
Tools & Calculators
Using a mortgage payment calculator is a very helpful way to understand how different mortgage rates in Winston Salem can impact your monthly payments. These online tools consider several key factors, including the loan amount, interest rate, and the repayment term, to provide a clear picture of your financial obligation.
Run the numbers on your home loan.
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Mortgage calculator
Punch in your home loan amount and a new interest rate, and we’ll estimate your payoff date.
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Down payment calculator
Enter a few details about your home loan and we’ll provide your monthly mortgage payment.
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Home affordability calculator
Provide us with a few details and see how much you can afford to spend on a home purchase.
Using the free calculators is for informational purposes only, does not constitute an offer to receive a loan, and will not solicit a loan offer. Any payments shown depend on the accuracy of the information provided.
Types of Mortgages Available in Winston Salem
In Winston Salem, you’re spoiled for choice with many types of mortgage loans. The conventional route typically looks for a credit score of 620 or higher, with the average homebuyer boasting a 758 in 2024. Then there are government-backed loans, each with its own perks. Take the time to sift through these choices, and you’ll be in a good position to land on the one that best aligns with your financial situation and needs.
Fixed-Rate Mortgage
Fixed-rate mortgages are a great option if you want to enjoy the stability of the same interest rate over the life of your loan. Common terms for fixed-rate mortgages include 10, 15, 20, 30, and 40 years. For homebuyers in Winston Salem, a fixed-rate mortgage can offer peace of mind and consistent monthly payments, making it easier to plan your budget.
Adjustable-Rate Mortgage (ARM)
With a lower initial interest rate than fixed-rate mortgages, ARMs can be quite appealing in the short term. The downside, of course, is the potential for increased monthly payments down the line. An ARM can be a strategic choice for those planning to sell before the fixed period concludes. But in case your plans change, you should run the numbers on higher payments to make sure your budget can handle it.
FHA Loan
With the Federal Housing Administration (FHA) standing behind them, FHA loans are crafted to open the doors of homeownership to a broader spectrum of individuals. These loans often feature more flexible eligibility criteria, such as a 580 minimum credit score for a down payment as low as 3.5%. If your credit score is 500-579, you could still qualify with a down payment of 10%. If you’re a first-time homebuyer in Winston Salem, an FHA loan could be just the ticket.
VA Loan
VA loans are a fantastic option for those who have served in the military. They are available to eligible active-duty military members, veterans, reservists, National Guard members, and surviving spouses. One of the most attractive features of VA loans is that they do not require a down payment. This is a great benefit for those who may have limited savings or who would prefer to use their money for other things. In Winston Salem, VA loans can offer competitive mortgage rates and flexible terms. This can help eligible borrowers to achieve their homeownership goals without the burden of a large initial down payment.
Jumbo Loans
In most areas, you’ll find that a conventional mortgage loan has a 2025 cap of $806,500 for a single-family home. If your needs exceed this limit, you’ll be looking at what’s known as a jumbo loan. These loans often come with higher interest rates and stricter qualification criteria than conventional loans. Exploring jumbo loan options could be the smart move if you’re eyeing a high-value property.
Recommended: Average Monthly Expenses for One Person
Get Your Best Possible Rate in Winston Salem
To land the most favorable mortgage rates in Winston Salem, your credit score is key. Aiming for a lower interest rate? Focus on paying your bills on time and avoid opening up new lines of credit. Try to chip away at monthly debts to reduce your DTI ratio. Going through the mortgage preapproval process can help you set a budget, learn how much a lender thinks you can borrow, and help speed the home-buying process once you want to make an offer.
How to Evaluate Loan Offers in Winston Salem
A competitive mortgage rate can save you a bundle over the life of your loan. Even a seemingly small rate difference can add up to thousands in savings. When you’re comparing loan offers in Winston Salem, be sure to look at both the interest rate and fees. The APR (annual percentage rate), which includes fees, closing costs, and discount points, can give you a more complete picture of what each loan will cost.
If you’re worried about rates going up, you can lock in your rate for up to 90 days for a fee. This can give you peace of mind in a market where rates are fluctuating.
Winston Salem Mortgage Resources
North Carolina is brimming with resources and down payment assistance programs to lend a hand to homebuyers, especially those stepping into homeownership for the first time or with limited financial means. The North Carolina Housing Finance Agency (NCHFA) is a prime example, offering initiatives like the NC Home Advantage Mortgage, which can provide a 30-year fixed-rate mortgage with up to 3% down payment assistance.
Closing Costs in Winston Salem
In Winston Salem, you can anticipate closing costs to range between 2% and 5% of your loan value. Your exact costs will be influenced by your property’s value and location. You’ll likely encounter expenses like loan origination fees, appraisal fees, and title insurance. Explore your options and compare the closing costs from multiple lenders. Some may present lower closing costs or the possibility of folding them into your loan (in exchange for a higher interest rate).
The Takeaway
The mortgage market in Winston Salem offers a variety of options to suit different needs. By keeping yourself in the loop with the current mortgage rates in North Carolina and exploring the various assistance programs available, you can make decisions that are not only strategic but also align with your financial goals. Whether you’re a first-time homebuyer or a seasoned homeowner, investing time to research and compare loan offers can lead to significant savings. Consider the benefits of different mortgage types, such as fixed-rate and adjustable-rate mortgages, and make the most of local resources to achieve successful homeownership in Winston Salem.
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
Will mortgage rates ever be normal again?
The idea of “normal” mortgage rates has certainly shifted. We’ve seen mortgage rates soar to over 18.00% in the 1980s and drop to under 3.00% in 2021.Mortgage rates aren’t expected to dip to that level again in 2025 or 2026, so your best bet is to consider your own financial landscape and the current market when making decisions.
Is it a good time to buy a house in Winston Salem, North Carolina?
The decision to buy is influenced by multiple factors, including mortgage rates, housing inventory, and your financial readiness. Winston Salem’s cost of living is notably more affordable than in many other cities. And home prices aren’t expected to lose significant value. If time is right for you to enter the market, doing so in Winston Salem is a good decision.
How to secure a mortgage rate?
First things first, check your credit score — a higher score can help you snag a lower rate. Then, put down the largest down payment your budget can comfortably handle to reduce your interest rate. Shop around for lenders, and don’t be afraid to ask questions. Be sure to compare fixed-rate and adjustable-rate mortgages, and inquire about points and fees. Doing your homework and taking your time to select the right lender will go a long way to making sure you secure the best available mortgage rate for your situation.
How do mortgage interest rates work?
Mortgage interest rates are the cost of borrowing money to buy a home, expressed as a percentage of the loan amount. Interest rates can be fixed or variable. Fixed rates don’t change over the life of the loan, so you have predictable payments. Variable rates can change over time, and that means your monthly payment can change, too. Knowing how these rates work can help you get the best mortgage terms and manage the cost of homeownership more effectively.
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.
Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.
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.
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.
SOHL-Q225-091
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First-Time Homebuyer Guide
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First-Time Homebuyer Programs and Loans
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Mortgage Preapproval Process
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Current Mortgage Rates in Puxico, MO Today
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Compare mortgage rates in Puxico.
Key Points
• Mortgage rates in Puxico, Missouri are influenced by a variety of factors, including economic conditions and a borrower’s financial health.
• Fixed-rate mortgages offer stability, while adjustable-rate mortgages (ARMs) can provide lower initial rates.
• A higher credit score and a larger down payment can lead to better mortgage rates.
• Over the years, mortgage rates have seen their fair share of ups and downs.
• Local homebuyer assistance programs and federal loan options can make homeownership more achievable.
Introduction to Puxico Mortgage Interest Rates
Welcome to our guide to mortgage rates in Puxico, Missouri. Mortgage interest rates are a critical aspect of home financing and significantly impact the overall cost of purchasing a home. This guide aims to help you understand the factors that determine mortgage rates in Puxico, and how you can work toward securing the lowest home loan rate possible.
To start, especially if you are buying your first home, it might help to understand how lenders decide on your rate in the first place.
Mortgage interest rates are the fees charged by lenders for borrowing money to purchase a home. These mortgage rates are determined by a complex combination of factors that can be separated into two buckets: the state of the economy and the borrower’s financial status.
Where Mortgage Rates Come From
Mortgage rates are influenced by a variety of factors tied to the economy and the financial markets. The bond market, particularly the 10-year U.S. Treasury Note, is viewed as a good indicator of where mortgage rates are headed. The performance of the housing market, inflation and unemployment also influence mortgage rates. Generally, when the economy is doing well, mortgage rates will rise. Understanding these key factors can help you lock in the best mortgage rates in Missouri at the right time for you and your family.
Once a lender has a general idea of the rate it will charge, it will fine-tune the percentage based on each borrower’s personal financial metrics. These include:
• Your credit score A conventional mortgage (one not backed by a government agency) typically requires a score of 620 or more — but the higher, the better.
• Your down payment amount A larger down payment can result in a lower interest rate.
• Your debt-to-income (DTI) ratio In general, mortgage lenders like to see a DTI ratio of no more than 36%, though that is not necessarily the maximum.
More home loan resources.
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First-Time Homebuyer Guide
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First-Time Homebuyer Programs and Loans
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Mortgage Preapproval Process
Apply online or call us for a complimentary mortgage consultation.
Texas First-Time Home Buying Assistance Programs & Grants
Texas First-Time Home-Buying Assistance Programs & Grants
(Last Updated – 06/2025)
Texas home prices may sound like a bargain: The average property value is $307,629, according to Zillow, vs. the national average of $367,711. But many first-time homebuyers can find the down payment, mortgage, and closing costs associated with a purchase hard to wrangle.
That’s where first-time homebuyer programs can help. They can provide assistance to those who qualify with the price of homeownership. Often, a prospective buyer must meet certain income or credit score criteria.
Read on to learn about these opportunities.
Who Is Considered a First-Time Homebuyer in Texas?
Anyone who hasn’t owned a primary home in the past three years is considered a first-time homebuyer in Texas, which jibes with the federal government’s definition. The U.S. Department of Housing and Urban Development (HUD) has other eligibility criteria for first-time homebuyers. These include a single parent who has only owned a home with a partner while married, and a displaced homemaker who has only owned a home with a spouse. Veterans may qualify for some of the same programs first-time buyers do.
Be aware that some benefit programs waive the first-time homeowner requirement for people purchasing a property in a qualified targeted census tract and for veterans.
💡 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.
6 Texas Programs for First-Time Homebuyers
The Texas Department of Housing and Community Affairs (TDHCA), the state agency responsible for affordable housing, offers several homebuyer programs for both first-time and repeat buyers who meet certain income and purchase price limits.
In addition, the Texas State Affordable Housing Corporation is a nonprofit that helps low-income homebuyers break into the Texas real estate market. To participate in the two agencies’ programs, buyers must take a homebuyer education course, which can help them understand how much home they can afford, what fees are involved, and how the lending and closing processes work.
Texas is also home to local mortgage and down payment assistance programs. Here’s a look at some specific programs.
1. My First Texas Home
The My First Texas Home program for first-time buyers and military veterans from TDHCA offers a 30-year low-interest mortgage backed by the FHA, VA, or USDA. Up to 5% of the mortgage is available in an interest-free, no-payment second mortgage for down payment assistance. The loan is repaid only if you sell your home, refinance, or pay off your mortgage.
Buyers must have a credit score of 620 or above and meet the TDHCA income and purchase price limits determined by county.
2. My Choice Texas Home
Also a TDHCA program, My Choice Texas Home is available to first-time and repeat buyers. The 30-year, low-interest rate mortgages are guaranteed by the FHA, VA, and USDA. This program also offers conventional loans.
Like My First Texas Home, buyers can receive up to 5% in an interest-free, no-payment second mortgage for down payment assistance.
Buyers must have a credit score of 620 or above and meet the same TDHCA income limits as above.
3. Home Sweet Texas Home Loan Program
A good first step to see what Texas State Affordable Housing Corporation programs you might qualify for is to watch a video and take an eligibility quiz .
The Home Sweet Texas Home Loan Program offers first-time and repeat buyers a 30-year FHA, VA, USDA, or HFA conventional loan and includes up to 5% in down payment assistance, which can be a grant or a no-interest, no-payment second mortgage that is forgiven after three years unless you sell your home or refinance your mortgage before that.
Borrowers need to meet income and purchase price requirements and have a credit score of at least 620.
4. Homes for Texas Heroes
The Texas State Affordable Housing Corporation also offers the Homes for Texas Heroes program. This is a 30-year fixed-rate mortgage for veterans and certain public service professionals such as public school teachers, librarians, counselors, and nurses, as well as firefighters and corrections officers.
Like the Home Sweet Texas Home program, up to 5% down payment assistance is available as a grant or no-interest, no-payment second mortgage that’s forgivable.
In addition to being a veteran or public servant, borrowers must have a credit score of 620 or above and meet income and purchase price requirements.
5. Local Mortgage and Down Payment Assistance Programs
First-time and repeat buyers should be sure to check for local programs from various cities, counties, and financial institutions for additional assistance. Dallas, Austin, Houston, and Corpus Christi, for instance, have local and neighborhood down payment assistance programs.
6. Mortgage Credit Certificate
First-time borrowers, veterans, and people buying in targeted areas in Texas, including those in the My First Texas Home program, have in the past been eligible for a Texas mortgage credit certificate, which allows borrowers to take a portion of their mortgage interest paid as a federal tax credit of up to $2,000 a year. Although this program has been discontinued indefinitely, mortgage credit certificates may still be obtained in combination with Texas State Affordable Housing Corporation’s programs, as funds are available. So it’s worth asking about this if you are in conversations about a loan in Texas.
Recommended: First-Time Homebuyer Guide
How to Apply to Texas Programs for First-Time Homebuyers
You can find information about qualifications, applications, and requirements for loan programs at the websites for both the Texas Department of Housing and Community Affairs and the Texas State Affordable Housing Corporation , as well as via the specific program links provided above.
Neither organization lends directly, but you can find a list of their approved participating lenders on their websites. They also provide a list of recommended real estate professionals. It’s especially important for first-time buyers, who may be unfamiliar with the mortgage lending process, to compare interest rates, fees, and other costs among lenders to find the most affordable loan.
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. Here are some details on how this works:
• 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 (specifically, between 500 and 579) 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% to 50% maximum for a conventional loan.
• Gift money for the down payment is acceptable from certain donors, and it 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.
◦ An 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.
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, reservists, veterans, 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. Here are some important points to note:
• Most borrowers pay a one-time funding fee that can be rolled into the mortgage.
• VA loans do not require private mortgage insurance (PMI) for borrowers who make a down payment of less than 20%.
• These loans may have more flexible credit score requirements. In some cases, even those who have previously been in foreclosure or bankruptcy can qualify.
Borrowers applying for a VA loan will need a Certificate of Eligibility from the VA so make sure to review a guide to qualifying for a VA loan as a first step in the process.
💡 Quick Tip: Active duty service members who have served for at least 90 consecutive days are eligible for a VA loan. But so are many veterans, surviving spouses, and National Guard and Reserves members. It’s worth exploring with an online VA loan application because the low interest rates and other advantages of this loan can’t be beat.†
Native American Veteran Direct Loans (NADLs)
Eligible Native American veterans and their spouses may use these no-down-payment loans to buy, improve, or build a home on federal trust land. Unlike VA loans listed above, the Department of Veterans Affairs is the mortgage lender on NADLs. The VA doesn’t require 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, which 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 certain professionals (such as 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. Get information from the HUD program page.
Texas First-Time Homebuyer Stats for 2025
• Percentage of buyers who are first-time buyers: 24%
• Average home value in Texas: $307,629
• 3% down payment: $9,229
• 20% down payment: $61,256
• Typical down payment percentage of first-time homebuyers: 9%
• Median household income of homebuyers: $97,000
• Average credit score in Texas: 695
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. In this context, 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 you to borrow from the 401(k) plan that it sponsors, you might 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 purchase a property, you may have up to 15 or even 25 years to repay.
• State and local down payment assistance programs. Usually offered at the regional or county level, these programs provide flexible second mortgages for first-time buyers looking into how to afford a down payment.
• The mortgage credit certificate program. First-time homeowners and those who buy in targeted areas can sometimes 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 decide to 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. Check with your employer; they may offer access to lower-cost lenders and real estate agents in your area, as well as home buying education courses.
• Your lender. Always ask your lender about any first-time homebuyer grant or down payment assistance programs available from government, nonprofit, and community organizations in your area.
The Takeaway
If you are a first-time homebuyer in the state of Texas, there may be programs that help out with home-owning opportunities. Income-qualified buyers may reap mortgages paired with down payment and other forms of assistance. Others can look for an affordable mortgage on their own among the vast array of home loans from federal programs and commercial lenders.
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, first-time homebuyer classes can be a smart move, providing you with good information on the jargon, technicalities, and steps involved in applying for a mortgage and purchasing a home. In fact, these helpful classes are required for some government-sponsored loan programs.
Do first-time homebuyers with bad credit qualify for homeownership assistance?
Often it is possible to get financial help to purchase a home even if you have poor credit. Many government and nonprofit homeowner assistance programs are available to people with lower 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 some level of credit qualifications.
Is there a first-time homebuyer tax credit in Texas?
Yes. The Texas Mortgage Credit Program allows first-time homebuyers to take a portion of their mortgage interest as an annual federal tax credit, up to $2,000, depending on the size of their mortgage.
Is there a first-time veteran homebuyer assistance program in Texas?
Sometimes. The Texas State Affordable Housing Corporation provides credits as funds are available.
What credit score do I need for first-time homebuyer assistance in Texas?
For many of the programs available in Texas, buyers need a credit score of 620 or more to qualify. But there are other private, state, local, and federal loan programs that borrowers with lower scores or no credit history may be able to access.
What is the average age of first-time homebuyers in Texas?
While there aren’t many statistics available about the age of first-time Texan homebuyers, the national average is currently 38, according to the National Association of Realtors®.
Photo credit: iStock/ivanastar
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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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Virginia First-Time Home Buying Assistance Programs
Virginia First-Time Home-Buying Assistance Programs
(Last Updated – 06/2025)
Virginia is for lovers — or so the state slogan proclaims — and there are plenty of reasons why someone would love to purchase a home there. Good schools, good music, good food, and great scenery, to name a few.
But for first-time homebuyers in Virginia, breaking into the housing market can be daunting. The median sales price in the Old Dominion had risen 3% year-over year to hit $472,600 as of April 2025, according to Redfin. And in some Virginia communities, the year-over-year price increases were much higher. Tysons, Tysons Corner, and Bristol all posted increases over 50%.
Fortunately, Virginia first-time homebuyers may qualify for financial help through programs offered by the state and some cities. There also are longstanding federal programs that could improve a buyer’s chances of success.
Recommended: First-Time Homebuyer Guide and Resources
Who Is Considered a First-Time Homebuyer in Virginia?
The definition of a first-time buyer might surprise some people. Sure, it’s someone who has never bought a home, but for most programs offered in Virginia and elsewhere, applicants are considered first-time homebuyers if they haven’t owned a home for the past three years. Guidelines from the U.S. Department of Housing and Urban Development (HUD) also count these folks as first-timers, so lenders often follow their lead:.
• Someone who has not owned a home in the last three years
• A single parent who has only owned a home with a partner while married
• A displaced homemaker who has only owned a home with a spouse
Chances are if you’re a homebuyer in Virginia, and especially if you’re a first-time buyer, you’re going to need a home mortgage loan.
9 Virginia Programs for First-Time Homebuyers
Most first-time homebuyer programs in Virginia are designed to help low- to moderate-income buyers who need help finding an affordable mortgage or coming up with a down payment or closing costs. Which means program participants typically must meet eligibility requirements regarding their income, credit scores, and debt-to-income ratio (DTI).
There also may be limits on how much the home to be purchased can cost, and the home usually must be owner occupied. Also, at least one of the buyers may have to complete a homebuyer education course as part of the application process.
The Virginia Housing Development Authority has a long list of programs for first-time homebuyers, but there are other statewide programs you also may want to consider. Read on for a snapshot of what’s available.
- Virginia Housing Conventional Home Loan
- Virginia Housing Conventional No Mortgage Insurance
- Virginia Housing Plus Second Mortgage
- Virginia Housing Down Payment Assistance Grant
- Virginia Housing Closing Cost Assistance Grant
- Virginia Department of Housing and Community Development Down Payment Assistance
- HOME of Virginia Steps to Homeownership Program
- Virginia Tax First Time Home Buyer Savings Account Subtraction
1. Virginia Housing Conventional Home Loan
Virginia Housing’s Conventional Home Loan program offers first-time and repeat homebuyers the opportunity to qualify for a 30-year fixed-rate loan with a low down payment combined with the lowest available conventional mortgage insurance payments. It can be paired with down payment assistance.
Benefits and qualifications include:
• 3% down payment (as low as 1% down with a Virginia Housing Down Payment Assistance Grant or 0% with Virginia Housing Plus Second Mortgage)
• Flexible down payment sources are allowed, including gifts, down payment assistance loan or grant, or other eligible second mortgages
• 640 minimum credit score
• Maximum 50% DTI ratio
• Maximum 3% seller concessions (6% if down payment is 10% or more)
• Must meet Virginia Housing income limits
• Must complete a homebuyer education course
• Must be a single-family, one-unit home or agency-approved condo (no manufactured homes)
• No maximum sales price limit (unless combined with other Virginia Housing programs). An approved lender can help you get started. For general questions, call Virginia Housing at 877-843-2123.
2. Virginia Housing Conventional No Mortgage Insurance
This 30-year fixed-rate loan program is similar to the conventional loan program above, except borrowers aren’t required to pay for mortgage insurance. It can be paired with down payment assistance.
Benefits and qualifications include:
• 3% down payment (as low as 1% down with a Virginia Housing Down Payment Assistance Grant or 0% with Virginia Housing Plus Second Mortgage)
• Flexible down payment sources are allowed, including gifts, down payment assistance loan or grant, or other eligible second mortgages
• 660 minimum credit score
• Maximum 50% DTI ratio
• Maximum 3% seller concessions (6% if down payment is 10% or more)
• Must meet Virginia Housing income limits
• Must complete a homebuyer education course
• Must be a single-family, one-unit home or agency-approved condo (no manufactured homes)
• No maximum sales price limit (unless combined with other Virginia Housing programs). An approved lender can help you get started. For general questions, call Virginia Housing at 877-843-2123.
3. Virginia Housing Plus Second Mortgage
The Virginia Housing Plus Second Mortgage pairs a Virginia Housing conventional loan, Virginia Housing conventional no mortgage insurance loan, or FHA loan with a second mortgage that borrowers can use to make their down payment.
The second mortgage is 3% to 5% of the home’s purchase price (amount is based on credit score and mortgage type).
Benefits and qualifications include:
• 30-year fixed-rate loan
• Qualified buyers with 680 or higher credit scores also can finance part of their closing costs using the second mortgage
• Must be a first-time homebuyer unless purchasing in targeted opportunity area
• Minimum 620-680 credit score (based on loan program)
• Borrowers must have 1% of purchase price available to them at closing
• Must meet Virginia Housing income limits
• Must complete a homebuyer education course. Contact an approved lender to apply. For general questions, call Virginia Housing at 877-843-2123.
4. Virginia Housing Down Payment Assistance Grant
Virginia Housing offers a Down Payment Assistance Grant that provides qualifying homebuyers with up to 2.5% of the home’s purchase price for their down payment. The grant must be used with a Virginia Housing conventional first mortgage, Virginia Housing conventional no mortgage insurance loan, or an FHA loan.
Requirements include:
• Available to first-time homebuyers and repeat buyers
• Minimum credit score of 620 to 660 (based on loan program)
• Qualified buyers with credit scores of 680 or higher can also finance part of their closing costs into the second mortgage.
• Must meet Virginia Housing income and sales price limits
• Must complete a homebuyer education course
• Virginia Housing mortgage must be locked in before receiving grant. An approved lender can help you get started. For general questions, call Virginia Housing at 877-843-2123.
5. Virginia Housing Closing Cost Assistance Grant
Virginia Housing’s Closing Cost Assistance Grant can help borrowers who are applying for a USDA or VA loan cover their out-of-pocket expenses. The maximum grant is 2% of the home’s purchase price.
Benefits and requirements include:
• Nonrepayable grant can be applied to closing costs, USDA guarantee fee, or VA funding fee.
• Must be a first-time homebuyer
• Minimum credit score of 620
• Must meet Virginia Housing income and sales price limits
• Must complete a homebuyer education course. Contact an approved lender to get started.
6. Virginia Department of Housing and Community Development Down Payment Assistance
The Virginia Department of Housing and Community Development (DHCD) has a down payment assistance program for first-time homebuyers who are at or below 80% of the area median income. Qualifying homebuyers may receive a grant worth up to 15% of their home’s purchase price, plus up to $2,500 for closing costs.
Requirements include:
• Minimum credit score of 620
• Maximum DTI 43%
• Must contribute to the home purchase from personal funds (contribution amount based on household income)
• Must meet U.S. Department of Housing and Urban Development income limits for Virginia
• Sales price cannot exceed HUD limits (may vary by location)
• Must receive HUD-certified homeownership counseling and complete HUD-certified homebuyer education course
To apply, you must work through a participating local provider .
7. HOME of Virginia Steps to Homeownership Program
Housing Opportunities Made Equal (HOME) of Virginia is a federally funded nonprofit organization that offers assistance to first-time buyers who can get a home loan on their own but may need down payment help.
Participants must attend a homebuyer education course and meet with a program counselor. Income limits are based on household size. For more information about this program, you can check out the HOME website .
8. Virginia Tax First Time Home Buyer Savings Account Subtraction
Virginia’s Department of Taxation (known as Virginia Tax) offers this opportunity for first-time buyers who are saving for a home. It involves designating an account at a Virginia financial institution as a First Time Home Buyer Savings Account (including savings or other bank accounts, mutual funds, CDs, brokerage, and money market accounts).
There are limits on how much you can save in the account (principal and interest), and the money in the account can be used only to pay the down payment or closing costs for a single-family home. But the advantage is that any income produced by the account is considered tax-free in the state. You can then subtract this income from your federal adjusted gross income to calculate your Virginia adjusted gross income for your taxes.
For more information, check out the Virginia Tax website .
Other Virginia Homebuyer Programs by Location
If you’ve already chosen the part of Virginia you hope to make your home, you also may want to research local buyer assistance programs.
If you can’t find assistance in your chosen location, check back occasionally for new offers. Some first-time homebuyer programs base their opportunities (and deadlines) on the funds they expect to become available. When their money runs out, they may press pause.
Some local programs:
Alexandria Flexible Homeownership Assistance Program
This loan program through the city of Alexandria provides down payment/closing cost assistance to first-time homebuyers who purchase a home made available through the Affordable Set-Aside Homebuyer Program, the Neighborhood Stabilization Program, or the Resale Restricted Homeownership Program.
Assistance is provided through a 0% interest, deferred-payment second mortgage. The assistance amount is based on household size, income, and financial need. For benefits and requirements, check out the website or call 703-746-3087.
Hopeful buyers also can sign up to receive email alerts about available affordable homes for sale and homebuyer training sessions, or call 703-746-4990.
Norfolk HomeNet Homeownership Center Programs
The HomeNet Homeownership Center offers several programs to help residents find, save up for, and buy an affordable home in Norfolk. The center’s opportunities include educational sessions, down payment assistance for qualifying homebuyers, and a matching savings program. Go to the center’s website or call 757-623-1111.
Recommended: Understanding Mortgage Basics
How to Apply to Virginia Programs for First-Time Homebuyers
Reaching out to an approved lender is often the key to learning what programs you might qualify for and how to follow all the steps from applying to closing.
Follow the links and contacts mentioned.
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 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: 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. Here’s a brief look at what is a VA loan: It 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 applying for a VA loan 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 the VA loans listed above, the Department of Veterans Affairs is the mortgage lender on NADLs. The VA requires no mortgage insurance but 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 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. Learn more information by visiting the HUD program page.
First-Time Homebuyer Stats for 2025
Ever wonder where you fit amid the buyers shopping for their first home, or their first in years? Here are some stats from a recent National Association of Realtors® Profile of Home Buyers and Sellers:
• Percentage of buyers nationwide who are first-time buyers: 24%
• Median household income of first-time buyers nationwide: $97,00
• Median down payment of first-time homebuyers: 9%
• Median age of first-time homebuyers: 38
• Average credit score in Virginia: 723
Additional Financing Tips for First-Time Homebuyers
In addition to federal and state government-sponsored lending programs, there are other financial strategies that may help you become a homeowner. Some examples:
• Traditional IRA withdrawals. The IRS allows qualifying first-time homebuyers a one-time, penalty-free withdrawal of up to $10,000 from their IRA if the money is used to buy, build, or rebuild a home. For this purpose, the IRS considers anyone who has not owned a primary residence in the past two years a first-time homebuyer. You will still owe income tax on the IRA withdrawal. If you’re married and your spouse has an IRA, they may also make a penalty-free withdrawal of $10,000 to purchase a home. The downside, of course, is that large withdrawals may jeopardize your retirement savings.
• Roth IRA withdrawals. Because Roth IRA contributions are made with after-tax money, the IRS allows tax- and penalty-free withdrawals of contributions for any reason as long as you’ve held the account for five years. You may also withdraw up to $10,000 in earnings from your Roth IRA without paying taxes or penalties if you are a qualifying first-time homebuyer and you have had the account for five years. With accounts held for less than five years, homebuyers will pay income tax on earnings withdrawn.
• 401(k) loans. If your employer allows borrowing from the 401(k) plan that it sponsors, you may consider taking a loan against the 401(k) account to help finance your home purchase. With most plans, you can borrow up to 50% of your 401(k) balance, up to $50,000 in a 12-month period, without incurring taxes or penalties. You pay interest on the loan, which is paid into your 401(k) account. You usually have to pay back the loan within five years, but if you’re using the money to buy a house, you may have up to 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.
• Your employer. Your employer may offer access to lower-cost lenders and real estate agents in your area, as well as home buying education courses.
• Your lender. Always ask your lender about any first-time homebuyer grant or down payment assistance programs available from government, nonprofit, and community organizations in your area.
The Takeaway
If you can qualify for one of the first-time homebuyer programs in Virginia, you may be able to reduce the costs of a purchase and make your dream of owning your own home a reality.
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 many government-sponsored loan programs.
Do first-time homebuyers with bad credit qualify for homeownership assistance?
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.
Is there a first-time homebuyer tax credit in Virginia?
There is not presently a first-time buyer tax credit in Virginia. The state ceased its mortgage credit certificate program in 2023. But Virginia’s Department of Taxation (known as Virginia Tax) does offer an opportunity for first-time buyers who are saving for a home to avoid taxes on special accounts used to save for a home.
Is there a first-time veteran homebuyer assistance program in Virginia?
Virginia Housing’s Closing Cost Assistance Grant allows VA loan applicants to cover their closing costs or the VA funding fee by providing up to 2% of the home’s purchase price. Also, Virginia Housing partners with the Virginia Department of Veterans Services to offer the Granting Freedom program, which provides grants of up to $8,000 for home modifications to Virginia veterans and service members who sustained a line-of-duty injury that resulted in a service-connected disability. If you qualify, you could use the money to make a home for sale a better fit for your needs.
What credit score do I need for first-time homebuyer assistance in Virginia?
Most homebuyer programs in Virginia require a credit score of at least 620.
What is the average age of first-time homebuyers?
The median age of first-time buyers is 38.
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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.
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