Who Is Considered a First-Time Homebuyer in Washington, D.C.?

For many of the Washington home mortgage loan assistance programs, you do not have to be a first-time homebuyer. You qualify as long as you do not currently own a home. That said, some of the programs do require that you have not owned a primary home in the past three years, which is the generally recognized definition of a first-time buyer.

Whether or not you’ve owned a home, it’s always a good idea to attend a homebuyer education program. And for some of the programs noted below, attendance is required. Homebuyer education can help all buyers understand how much mortgage they can afford, what fees are involved, and how the lending and closing processes work.

Recommended: First-Time Homebuyer Guide

4 Washington, D.C. Programs for First-Time Homebuyers

The District of Columbia Housing Finance Agency (DCHFA) offers homebuyer and down payment programs to those who meet income and credit requirements and loan maximums.

Let’s take a closer look.

1. Open Doors Mortgage Program

Qualified first-time and repeat buyers can receive 30-year mortgages at below-market rates for the purchase of a home anywhere in Washington, D.C. You do not have to be a current district resident to apply.

To qualify, borrowers must have a credit score of 640 and an annual income of $275,400 or below. (This is not a household income number; it only applies to the buyer.) The mortgage amount cannot total more than $1,209,750, but there are no purchase price restrictions. Maximum debt-to-income ratios apply.

2. Open Doors Down Payment Assistance Loan

This is a no-interest, no-payment deferred loan used to pay the full amount of your required minimum down payment on an Open Doors primary mortgage. The loan comes due only when the house is sold or transferred, is no longer your principal residence, the mortgage is refinanced, or the 30-year mortgage term is up.

Requirements are the same as Open Doors primary mortgages, listed above.

3. DC4ME Program for Government Employees

The DC4Me program offers full-time D.C. government employees access to a first mortgage at a reduced interest rate and the option of down payment assistance worth 3% of the mortgage in the form of a 0% interest deferred loan.

To qualify, the borrower must be employed by the district, including independent agencies, public charter schools, and any organization that falls under the oversight of the Council of the District of Columbia. Unlike other DCHFA programs, eligible government employees must be a first-time buyer — meaning they do not currently own a home and have not owned a home in the past three years. Borrowers must also complete a home buying education course.

Like the other programs, a credit score of 640 is required. But unlike the other programs, there is a maximum household income (not just the borrower) of $275,400 and a stipulation that the maximum household income not exceed 170% of the area median income. The mortgage loan amount cannot exceed $1,209,750 and the borrower’s debt-to-income ratio may not exceed 50%.

4. Home Purchase Assistance Program

Interest-free loans are for first-time homebuyers (defined as those who have not had an ownership interest in any residential real estate within the three years prior to application). The household income must be within the very low-to-moderate level — up to 110% of area median income.

Borrowers may access up to $202,000 in down payment costs and $4,000 in closing costs as a second, zero-interest loan.

How much you receive and the terms of your repayment depend on your income and household size. For moderate-income households, payments are deferred for the first five years, then are amortized over 40 years. Low-income households will have no monthly payments. All loans are payable in full if you transfer or sell the property, refinance the primary mortgage, or rent out the house.

Recommended: Understanding the Different Types of Mortgage Loans

How to Apply to Washington, D.C. Programs for First-Time Homebuyers

You can find information about qualifications, applications, and requirements for loan programs at the DCHFA website .

You’ll also find a list of approved participating lenders who administer the loans and can help you apply.

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 help with that process, D.C. Open Doors hosts homebuyer education sessions each month for free as well as free seminars outside of Open Doors.

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. If you think you might be eligible, take time to learn what a VA loan is. It can be used to buy, build, or improve homes. It has a lower interest rate than most other mortgages and doesn’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.

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.

Washington, D.C. First-Time Homebuyer Stats for 2025

•   Median home sale price in Washington, D.C.: $741,000

•   3% down payment: $22,230

•   20% down payment: $148,200

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

•   Median age of first-time homebuyers: 38

•   Average credit score (vs. average U.S. score of 715): 715

By Kim Franke-Folstad

(Last Updated – 06/2025)

South Carolina’s beautiful coastline, historic towns, and Southern hospitality have always been a magnet for tourists. But the state is also an appealing haven for homebuyers who fall in love with its charms.

South Carolina is becoming a popular option for retirees, remote workers, and others who decide to migrate from large cities. According to Redfin, the median statewide sales price rose to $380,800 in April 2025 — holding fairly steady year-over-year. In some South Carolina communities, prices are rising faster. Hanahan, Socastee, and Lake Wylie are among the places that saw increases of more than 20%.

According to Redfin, the median statewide sales price rose to $361,900 in February 2024 — a 6.7% increase in 12 months. In some South Carolina communities, the numbers were much higher. Prices rose especially steeply in Garden City, Spartanburg, and Hilton Head Island.

Buyers in the Palmetto State may think homeownership is out of reach, but fortunately, assistance programs are offered by the state and some cities and counties. Longstanding federal programs also could improve a buyer’s chances of success.

Recommended: First-Time Homebuyer Guide

5 South Carolina Programs for First-Time Homebuyers

Most first-time homebuyer programs in South Carolina are designed to help low- to moderate-income buyers who need help coming up with a down payment and/or closing costs. Generally, that assistance comes in the form of a second home mortgage loan that is fully forgiven if the buyer stays in the home for a set amount of time (usually three years).

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

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

Recommended: Understanding Mortgage Basics

Here are details about South Carolina’s homebuyer programs.

1. SC Housing Homebuyer Program

The SC Housing Homebuyer Program offers qualifying first-time buyers a 30-year, fixed-rate mortgage paired with a forgivable no-payment, 0% interest second loan to put toward a down payment, closing costs, or both for a primary home.

Participants have the option of choosing from several different types of mortgages, including FHA, VA, USDA, and conventional home loans.

Availability: Statewide (though program benefits may differ by county)

Type of Assistance: Second mortgage forgiven monthly over a 15-year term. If borrowers remain in the home for the full term, the second loan is fully forgiven.

Benefits and Qualifications Include:

•   In “non-targeted” counties, the program is for first-time homebuyers (including borrowers who haven’t owned a principal residence in three years)

•   In “targeted” counties, borrowers cannot have any ownership interest in a home at the time of closing

•   Minimum credit score of 620 or 640, depending on loan type

•   Must complete homeownership education course

To Apply: Contact an approved lender or SC Housing via the link on this page.

2. SC Housing Palmetto Home Advantage

The Palmetto Home Advantage program offers qualifying first-time and repeat buyers a 30-year, fixed-rate mortgage paired with a forgivable no-payment, 0% interest second loan to put toward their down payment and/or closing costs. Participants may have the option of choosing from FHA, VA, USDA, and conventional home loans.

Availability: Statewide

Assistance Amount: 0%, 3%, or 4% of the loan amount

Type of Assistance: Second loan forgiven monthly over a 10-year term.

Benefits and Qualifications Include:

•   No first-time buyer limitations

•   Borrowers who require mortgage insurance may receive reduced rates

•   Income limit for government loans is $127,200 per borrower

•   Borrower income limit for conventional loans can’t exceed 80% of area median income

•   Minimum credit score of 640 for all loan types

To Apply: Contact an approved lender or SC Housing directly at [email protected].

3. SC Housing Palmetto Heroes

The Palmetto Heroes program benefits South Carolina teachers, law enforcement and corrections officers, firefighters, emergency medical services and health care workers, active-duty military, veterans, and members of South Carolina’s Army National Guard and Air National Guard by offering a reduced-rate first mortgage paired with $10,000 in forgivable down payment assistance through a 0% interest, no-payment second mortgage.

4. SC Housing County First Initiative

The County First Initiative is designed to help potential homebuyers in underserved communities with poor economic conditions. It offers a reduced-rate conventional, FHA, VA, or USDA first mortgage plus assistance with down payment and closing costs.

To Apply: Contact an approved lender .

5. SC Mortgage Tax Credit Program

The SC Mortgage Tax Credit program offered by SC Housing is a different kind of assistance program designed to help low-income homebuyers. Borrowers can use a mortgage credit certificate to claim a portion of their annual mortgage interest, dollar for dollar, up to $2,000, as a federal tax credit every year for the life of their loan.

The cost of a SC Mortgage Tax Credit is $500, and participating lenders also may charge a processing fee up to $500. This cost may be paid by the borrower or by the seller.

Applicants must be first-time homebuyers (you can’t have owned a home within the past three years) unless you’re a qualified military veteran or buying in a designated area. Income and home purchase price limitations may vary by county.

To Apply: You can apply for the credit certificate when you take out a home loan through a state-approved participating lender. To get the credit, you’ll need to complete IRS Form 8396 when you file your taxes. (Talk to your tax advisor.)

Recommended: 6 Simple Ways to Reduce a Mortgage Payment

City and County First-Time Buyer Programs

If you’ve already picked out the South Carolina city or county you hope to make your home, you may want to research the local buyer assistance programs that are available. Here’s the rundown on a few.

City of Charleston Homeownership Initiative First-Time Homebuyer Program

The City of Charleston partners with several agencies to assist first-time homebuyers in low- to moderate-income families. For information on the program’s benefits and eligibility requirements, visit this page

Richland County Homeownership Assistance Program

Richland County Community Development offers down payment and/or closing cost assistance to low- to moderate-income households through forgivable loans of up to $24,500. For information on the program’s benefits and eligibility requirements, go to the program’s website or email [email protected].

City of Rock Hill First-Time Homebuyer Program

The Housing Development Corporation of Rock Hill provides up to $5,000 in down payment and closing cost assistance to eligible homebuyers through a forgivable second mortgage.

Who Is Considered a First-Time Homebuyer in Utah?

The answer to that question isn’t as obvious as it seems. For most programs offered in Utah and elsewhere, applicants are considered first-time homebuyers if they haven’t owned a home for the past three years.

Additionally, some programs may make exceptions for veterans, single parents, and others. It’s a good idea to be clear on specific eligibility standards before you start any application.

💡 Quick Tip: Buying a home shouldn’t be aggravating. Online mortgage loan forms can make applying quick and simple.

Other Utah Homebuyer Programs by Location

If you already know which Utah community you hope to make your home, you also may want to research local first-time homebuyer programs. If you can’t find assistance in your chosen location, you may want 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. When their money runs out, they may press pause.

At Home in Layton Down Payment Assistance Program

Layton City offers the At Home in Layton Down Payment Assistance Program to income-eligible first-time homebuyers. The assistance comes in the form of a grant in $10,000 increments that can be used for a down payment, closing costs, or principal reduction. If the purchased home is sold before the end of the fifth year after closing, all or a portion of the grant may have to be repaid to the city.

The next round of funding is set to become available on July 1, 2025. Funds are limited, and applications are accepted on a first-come, first-served basis, so it’s wise to check and see what is available. For more information, you can check out the program’s web page or go to the brochure for application guidelines . Contact the Layton City Community Development Block Grant administrator at 801-336-3770 or [email protected].

Own in Ogden Loan Program

The Own in Ogden loan program provides qualifying first-time and repeat homebuyers with a 0% interest, deferred-payment second loan for their down payment or closing costs. The loan also can be used to reduce the principal on the buyer’s first mortgage. Income and purchase price limits may apply. Please note: At present, the program is accepting applications, but they cannot be funded until July 1, 2025.

•  Homebuyers can receive $10,000 to purchase a primary residence in Ogden.

•  State-certified K-12 classroom teachers or administrators in schools that serve city students can receive a $15,000 loan.

•  Ogden employees and new hires who don’t currently live in the city can receive a loan of up to $15,000 to help them move there .

•  Ogden police officers and firefighters can receive a $20,000 loan.

  Income and purchase limits apply. For more information, you can go to the program’s web page or view the program brochure for application guidelines .

Provo Home Purchase Plus Program

The Provo Home Purchase Plus Program offers eligible homeowners the opportunity to apply for a 0% interest, deferred-payment second loan to help pay their down payment and closing costs. Payment is due in full when the borrower no longer lives in the home as their primary residence. (If the home is sold or vacated within two years of purchase, there may be a $5,000 penalty.)

Income limits, asset limits, credit requirements, and purchase price limits apply, and all household members over 18 must pass a background check. For more information, check out the program’s web page or call 801-852-6162.

Utah County Loan to Own Program

Utah County’s Loan to Own program provides down payment assistance to moderate-income first-time homebuyers in the form of a 0% interest, deferred-payment second loan. This loan is available up to $40,000 currently. The loan must be repaid if the owner vacates or sells the property, and there is a $5,000 penalty if the owner does so within two years of closing.

This program is available countywide except for Eagle Mountain, Alpine, Fairfield, and Provo. Income limits, credit requirements, and purchase price limits apply. You can get more information at the program’s web page or call the Housing Authority at Utah County at 801-373-8333.

How to Apply to Utah Programs for First-Time Homebuyers

If you are interested in any of the above programs for first-time homebuyers in Utah, Follow the links relevant to each program to check what funding is available and find an approved lender or other contact.

Recommended: Understanding Mortgage Basics

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 particularly 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. Here are some details to note:

•   Loans have competitive interest rates and require a down payment of 3.5% of the purchase price from 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.

•   In addition to examining your credit score, lenders will look at your debt-to-income ratio (DTI, which is 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.

•   Using gift money for the down payment is allowed if it’s 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 for the removal of mortgage insurance after 11 years.

Interested in finding out moreJ? 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, visit 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. A few specifics:

•   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 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: Apply for a VA loan and borrow up to $1.5 million with a fixed- or adjustable-rate mortgage. The flexibility extends to the down payment, too — qualified VA homebuyers don’t even need one!^{†^}

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. Learn more about this mortgage option 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 those in certain professions (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. 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 the first one in a while)? Here are some stats to check out:

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

Average credit score of a first-time homebuyer in the U.S.: 715

Average credit score in Utah: 730

Median age of a first-time homebuyer: 38

Average home value in Utah: $538,898

3% down payment: $16,167

20% down payment: $107,780

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 can take a bite out of 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.

Take note: 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 your 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

Utah has an array of state and local assistance programs for low- to moderate-income first-time homebuyers. This can be in the form of help with a down payment, mortgage, and/or closing costs. Other first-time buyers may find an affordable choice among the various federal and commercial mortgages available.

By Kenny Zhu

(Last Updated – 06/2025)

Real estate competition has been brewing in the Buckeye State, just as it has everywhere else.

In June 2025, home prices in Ohio were up 6.0% compared to last year, hitting a $253,300 median price, according to Redfin. Sales prices had the biggest jumps in Chillicothe, Hilliard, and Canton.

Things can look a bit intimidating for first-time Ohio homebuyers. But homeownership may be more accessible than you think.

The Ohio Housing Finance Agency (OHFA) offers a variety of programs to assist low- and moderate-income first-time and repeat homebuyers hoping to achieve homeownership.

4 Ohio Programs for First-Time Homebuyers

OHFA offers four first-time homebuyer assistance programs that can be used in tandem with 30-year fixed-rate FHA, VA, USDA, or conventional mortgage loans.

The benefits from these programs come in the form of down payment assistance, a discounted rate, and a tax credit. Here are the program basics.

1. Your Choice Down Payment Assistance

The OHFA YourChoice! Down Payment Assistance program allows qualifying first-time homebuyers to borrow, in the form of a forgivable loan, 2.5% or 5% of the value of their home purchase to put toward their down payment or closing costs.

OHFA will forgive the assistance after seven years if the homebuyer doesn’t sell or refinance the home. If you sell or refinance your property before seven years are up, you will be required to repay all assistance provided.

2. Ohio Heroes

OHFA offers a discounted mortgage rate for first-time homebuyers in Ohio who work in industries that serve the public interest. Those who qualify for Ohio Heroes benefits are also eligible for the OHFA’s 2.5% to 5% down payment assistance loan.

Qualifying sectors include: veterans, active-duty military and reserve members, and surviving spouses; police officers and professional and volunteer firefighters; EMTs and paramedics; physicians, nurse practitioners, nurses, and state-tested nursing assistants; teachers, administrators, and counselors (preK-12).

Criteria for Ohio Heroes include credit scores of 640 or higher for conventional, USDA and VA Loans, and 650 or higher for FHA Loans. Income limits vary depending on the number of people in your family and whether or not your home is in a target or non-target area.

Qualified buyers must complete a free homebuyer education course with any counseling agency approved by the U.S. Department of Housing and Urban Development (HUD) in Ohio.

3. Grants for Grads

The Grants for Grads program offers a discounted mortgage rate and 2.5% to 5% in down payment assistance, forgivable after five years, for first-time Ohio homebuyers who have obtained a qualifying degree in the 48 months leading up to their loan origination.

Eligible degrees include an associate, bachelor’s, master’s, and doctorate degree. Down payment assistance is forgiven after five years as long as you remain in the state of Ohio. If you sell your home and move out of Ohio within five years, you must repay some or all of the assistance provided.

You may meet the program’s criteria if you have not owned or had ownership interest in a primary residence in at least three years. You must meet income limits according to the number of people in your family and the prospective home’s location in a target or non-target area. Credit score requirements are 640 or higher for conventional, USDA and VA Loans, and 650 or higher for FHA loans.

Qualified buyers must complete a free homebuyer education course with any counseling agency approved by the U.S. Department of Housing and Urban Development (HUD) in Ohio.

4. Mortgage Tax Credit

OHFA offers a mortgage tax credit of 40% of annual mortgage interest paid, up to $2,000, for anyone who qualifies under OHFA’s first-time homebuyer program.

If you use the tax credit with a different mortgage option from your lender, your tax credit percentage will be 20% for a property located in a target area and 15% for other properties.

Note: As of late May 2025, OHFA was not accepting applications for the Mortgage Tax Credit. The program may become available again in July 2025, so check back for updates.

How to Apply to Ohio Programs for First-Time Homebuyers

To participate in OHFA’s first-time homebuyer programs, you’ll need to go through the following steps to find and apply for a loan. Don’t worry; it’s almost exactly the same process as applying for a conventional home loan. The main caveat is that your mortgage lender must work with OHFA.

Step 1: Find a Participating Lender

Not all banks fall under the umbrella of OHFA-approved lenders, but the organization lists participating mortgage lenders on the website. Find a lender working in the target county where you want to buy.

Make sure you find a lender that works in the target county where you’re trying to buy. Most large local financial institutions typically show up as participants in the program.

Getting preapproved for a mortgage will show you the size of the loan, and the interest rate, you’d likely qualify for.

Step 2: Find an Agent and a Home

A real estate agent can help you find a home in your price range and ensure that the property meets OHFA income and sales price limits.

OHFA may offer additional incentives for buyers of homes located in challenged “targeted areas .”

Step 3: Take the Homebuyer Education Course

OHFA requires all first-time homebuyers participating in its programs to complete a free homebuyer education course (the sole exception being mortgage tax credit basic buyers).

You can complete the course directly through the website , free of charge.

Keep in mind that while it’s recommended that you complete the online education course in advance, the homebuyer education isn’t technically complete until after you’ve submitted a formal loan application through your lender.

Step 4: Get an Offer Accepted and Finalize Your Loan Application

Think of all the different types of homes out there, from condo to townhouse and single-family home, your budget, school districts, and wants and needs.

Once you make an offer and the home seller has accepted it, you can move forward with finalizing your mortgage application. Your lender will work with you to coordinate a target closing date and verify that all underwriting and OHFA requirements are met.

Your loan officer will advise you on how final OHFA benefits will be disbursed in accordance with which first-time homebuyer program you qualified for.

Federal Programs for First-Time Homebuyers

The OHFA’s first-time homebuyer program includes perks, but higher earners and others will not qualify. 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.

Several federal government programs are designed for people who have low credit scores or limited cash for a down payment.

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 an approved-lenders list of institutions participating in the FHA loan program. Loans have competitive interest rates and require a down payment of 3.5% of the purchase price for borrowers, who typically need FICO^® credit scores of 580 or higher. Those with scores as low as 500 must put at least 10% down.

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 will accept a DTI of up to 57%, vs. a typical 45% maximum for a conventional loan.

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

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

Freddie Mac Home Possible Mortgages

Low- and very low-income borrowers may make just 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.

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

Fannie Mae HomeReady Mortgages

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

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

Fannie Mae Standard 97 LTV Loan

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

Department of Veterans Affairs (VA) Loans

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

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

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

Native American Veteran Direct Loans (NADLs)

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

US Department of Agriculture (USDA) Loans

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

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

HUD Good Neighbor Next Door Program

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

Visit the HUD program page for more information.

Ohio First-Time Homebuyer Stats for 2025

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

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

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

•   Median home price in Ohio: $253,300, according to Redfin

•   Median down payment: $26,000

•   Average credit score in Ohio (vs. average U.S. score of 714): 716

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. In the event of an IRA withdrawal, someone who has not owned a principal residence in the last two years is considered 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. Most plans let you borrow up to 50% of your 401(k) balance, not exceeding $50,000, within a 12-month period without incurring taxes or penalties. You pay interest on the loan, which is paid into your 401(k) account. You usually have to pay back the loan within five years, but if you’re using the money to buy a house, you may have up to 15 years to repay.

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

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

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

•  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’re a first-time homebuyer in Ohio, discounted-rate mortgage programs and down payment assistance are available to help make your home purchase more affordable in today’s tough market.If you don’t qualify for those programs, you might want to further investigate government-backed loans and conventional loans.

Who Is Considered a First-Time Homebuyer in Pennsylvania?

According to federal and Pennsylvania housing authorities, a first-time homebuyer is someone who has not owned a primary home in the last three years.

The U.S. Department of Housing and Urban Development (HUD) also considers these groups first-time buyers:

•  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

•  Someone who has owned a principal residence not permanently affixed to a permanent foundation

•  Someone who has only owned a property that wasn’t in compliance with state, local, or model building codes

Keep in mind that veterans and people buying in federally targeted areas often qualify for the same lending advantages as first-time buyers.

Recommended: First-Time Homebuyer Guide

4 Pennsylvania Programs for First-Time Homebuyers

The Pennsylvania Housing Finance Agency offers mortgage loans and down payment and closing cost assistance to first-time and repeat buyers. In general, you should know your FICO® credit score and household income.

And you might have a good idea of how much home you can buy, but getting the details with a home affordability calculator can’t hurt.

1. PHFA: Preferred (Lo MI)

The Pennsylvania Housing Finance Agency offers a conventional 30-year, fixed-rate loan that is designed specifically for housing finance agencies. There is no first-time homebuyer requirement, although there are credit-score and homebuyer education requirements. Borrowers obtaining the HFA Preferred™ loan may qualify to receive a PHFA Grant of $500 to be applied toward down payment and closing costs.

There are household income limits , and you must have an “acceptable” credit history to qualify. You must put down at least $1,000 toward the home and show the ability to make your monthly payments. Pre-closing homebuyer education is required.

Borrowers obtaining an HFA Preferred loan may qualify to receive a Pennsylvania Housing grant of $500 for a down payment and closing costs. To apply, contact a participating lender .

2. PHFA: Keystone Home Loans

This mortgage program does not require you to be a first-time homebuyer, though you need to be purchasing a home in a targeted county (or be a discharged veteran).

To qualify, you must meet household income and purchase price limits. Additionally, you need an “acceptable” credit history and be able to demonstrate that you can afford your mortgage payments.

To see if you qualify, contact a participating lender .

3. PHFA: HOMEstead Down Payment and Closing Cost Loan

This program offers up to $10,000 in down payment and closing cost assistance through a no-interest second mortgage. The loan is forgiven over five years. Buyers participating in the Keystone Home Loan Program are eligible to apply if they meet income and home purchase price limits .

4. PHFA: Keystone Advantage Assistance Loan

Keystone Advantage provides a second mortgage of up to 4% of the purchase price (or $6,000, whichever is less) for the down payment and closing costs. The loan has 0% interest and has monthly payments for 10 years. To qualify, you must have a credit score of 660 or higher. Your liquid assets cannot be more than $50,000 after deducting the funds needed to close on the loan.

5. City and County Programs

It’s a good idea to look into assistance from the city or county where you plan to put down roots. Pennsylvania homebuyers might try an option on this list .

How to Apply to Pennsylvania Programs for First-Time Homebuyers

For the Pennsylvania Housing programs, contact a participating lender to make sure you qualify, start your application, and get guidance on assistance that may pair with 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.

Recommended: The Average Down Payment on a House

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.

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. Get information from the HUD program page.

First-Time Homebuyer Stats for 2025

Here’s some data about Pennsylvania home sales.

•  Median sales price in Pennsylvania: $306,400

•  3% down payment in Pennsylvania: $9,192

•  20% down payment: $61,280

•  Average credit score in Pennsylvania (average U.S. score is 715): 722

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. After reading up on how to choose a mortgage term, check out these tips on how to lower your mortgage payment:

•  Traditional IRA withdrawals. The IRS lets first-time homebuyers who qualify make 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.

•  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.

•  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

In Pennsylvania, first-time homebuyers of moderate means may be able to get a mortgage and down payment assistance through the state or a local agency. Other first-time buyers can shop for an advantageous mortgage on their own.