By Susan Guillory

(Last Updated – 06/2025)

University of California, Davis (UC Davis) is a public research university and a premier campus located in Davis, California. Known for its top-ranked veterinary medicine program and its expansive, bike-friendly campus, UC Davis offers more than 100 undergraduate majors alongside graduate and professional degrees.

Keep reading to learn detailed information on UC Davis tuition and fees, financial aid opportunities, acceptance rates, admission requirements, and more.

Total Cost of Attendance

UC Davis has several noteworthy programs, including veterinary medicine and agriculture. In 2024-25, UC Davis tuition and fees was $16,774 for in-state students and $50,974 for out-of-state students. The national averages for public four-year schools are $11,260 for in-state students and $29,150 for out-of-state students.

Financial Aid

At UC Davis, 58% of students use financial aid to help with UC Davis tuition. They may take out student loans or apply for grants and scholarships.

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

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

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

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

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

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

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

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

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

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

Recommended: The Differences Between Grants, Scholarships, and Loans

Private Student Loans

When it comes to student loans, 22% of students at UC Davis take out federal loans, while 9% take out private loans. The average private student loan is $5,153.

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

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

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

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

Recommended: Guide to Private Student Loans

Projected 4-Year-Degree Price

To attend UC Davis for four years, students from California will pay $176,808, while students from other states will pay $313,608. The average cost for four years at a public university in the U.S. is $115,360 for in-state students, and $186,920 for out-of-state.

Here’s some California Student Loan & Scholarship Information for you.

Undergraduate Tuition and Fees

UC Davis tuition and fees, books and supplies, room and board, and miscellaneous expenses for the 2024-25 school year totaled $44,202 for in-state students and $78,402 for out-of-state students.

Graduate Tuition and Fees

University of California, Davis offers many well-respected graduate programs. UC Davis tuition for grad school is $12,762 (in-state) or $27,864 (out-of-state), plus fees totaling $2,379 for each. This is more than the average cost for one year of graduate school at a four-year public institution in the U.S., which is $10,320 per year. There are graduate loans available to help with these costs.

Cost per Credit Hour

UC Davis does not offer the ability to pay per credit hour, even if students attend part-time. Part-time students pay half the full-time tuition.

Campus Housing Expenses

Freshmen are not required to live on campus, though more than 90% choose to do so. There are 30 residence halls spread over three areas of campus for students to live in.

There are many options near campus for students who choose to live in apartments or houses, either on their own or with roommates.

University of California – Davis Acceptance Rate

The UC Davis acceptance rate is 42%, which means that nearly half of the students who apply are accepted.

Admission Requirements

Here’s what’s required when applying at UC Davis:

Required:

•   High school transcript and GPA

•   College preparatory program

•   Personal statement or essay

The deadline for applications to UC Davis is December 2. You can apply to UC Davis here .

SAT and ACT Scores

No SAT or ACT scores are considered with applications through the fall of 2024, and scores won’t be considered for scholarships during this period.

Popular Majors at the University of California Davis

UC Davis offers over 100 majors and programs. Here are the most popular majors at UC Davis.

1. Psychology

One of the most popular majors is psychology, which provides a base in research methods and statistics courses, as well as courses in mathematics, chemistry, biology, and psychology. Students have the opportunity to conduct research, help faculty with projects, or intern in the field.

Undergraduate degrees in 2023-24: 866

2. Management Sciences

In this program, students learn how to apply economic theory to business situations, develop problem-solving skills, and improve communication skills. Students can specialize in one of these areas: business economics, international business economics, environmental and resource economics, or agribusiness economics.

Undergraduate degrees in 2023-24: 498

3. Neurobiology and Anatomy

Building on a foundation in biological sciences, chemistry, mathematics, and physics, students can choose courses based on their interests, including animal behavior, physiology of particular organ systems or groups of animals, developmental neurobiology, and endocrinology.

Undergraduate degrees in 2023-24: 394

4. Economics & Quantitative Economics

Economics majors at UC Davis learn about microeconomics and macroeconomics, statistics, and mathematics, as well as economic theory, American or European economic history, and data analysis. Students can also choose courses such as games theory, financial institutions, or international economic development.

Undergraduate degrees in 2023-24: 392

5. Computer Science

Computer science students will learn about programming, networking, and database systems, and can customize their studies with courses on computer graphics, artificial intelligence, data visualization, or advanced mathematics.

Undergraduate degrees in 2023-24: 390

6. Human Development and Family Studies

This program explores the social, emotional, and cognitive development of humans, and provides hands-on learning experiences. Students will learn about nutrition and childhood and adult development. They will also get to participate in a practicum course and may opt for an internship.

Undergraduate degrees in 2023-24: 335

7. Biological Sciences

Biology students are given a solid foundation in biology, chemistry, mathematics, and physics, and can then take courses in molecular biology and genetics, animal behavior, plant growth and development, bioinformatics, marine biology, forensics, and microbiology.

Undergraduate degrees in 2023-24: 334

8. Animal Science

This program provides ample opportunity for hands-on learning with different types of animals. Students will also learn about animal behavior, biochemistry, genetics, nutrition, physiology, animal health, and productivity.

Undergraduate degrees in 2023-24: 294

9. Political Science

Political science students at UC Davis will learn about political concepts, institutions, behavior, and processes. Courses are available on American politics, comparative politics, international relations, public law, and political theory.

Undergraduate degrees in 2023-24: 240

10. Communication

Communications students learn about communications processes at different levels and delve into digital media and cross-cultural communications. They will study communication theory, specific communication processes, and the role and effects of mass media. They will also have the chance to intern in their field.

Undergraduate degrees in 2023-24: 239

Graduation Rate

The graduation rate for students who started at UC Davis in 2017 is 85%.

Post-Graduation Median Earnings

After graduating, students from UC Davis earn, on average, $80,838 per year. This is higher than the national average of $68,680 for the class of 2025.

By Walecia Konrad

(Last Updated – 06/2025)

It’s a long journey through the 440-mile length of Tennessee. That’s why the Volunteer State is divided into three Grand Divisions — East Tennessee, Middle Tennessee, and West Tennessee — each with a unique personality and real estate market.

East Tennessee is square in the Appalachian Mountains and is home to Knoxville and Chattanooga, the state’s third- and fourth-largest cities. The rolling hills of the middle area are anchored by Nashville, Tennessee’s largest city and the capital. The western division slides into the flatlands of the Mississippi River and is home to the inimitable Memphis.

For houses in Tennessee, the median list price is now $434,137, according to Redfin. That’s a large number but still more affordable than in many other states. Plus, Tennessee offers a robust first-time homeowner assistance program for mortgages and down payments.

4 Tennessee Programs for First-Time Homebuyers

First-time homebuyers can find help through the Tennessee Housing Development Agency’s Home Loan Program. Down payment assistance is also part of the agency’s menu. Here’s a closer look.

1. Great Choice Home Loan Program

This program offers conventional, FHA, VA, and USDA 30-year fixed-rate loans to first-time homebuyers. Interest rates vary based on the market and the mortgage lender. Down payment assistance is available for FHA or USDA loans.

To qualify, borrowers need to make a 3% down payment for insured conventional loans and a 3.5% down payment for FHA and USDA loans. Income and purchase price limits apply, depending on the county and household size. Buyers who are not first-timers are also able to participate in this program if they are qualified military buyers or are buying in certain targeted areas.

The housing agency requires a minimum FICO^® credit score of 640 for everyone on the loan application and completion of a home education course.

2. Homeownership for Heroes

Available to active military service members including the National Guard, as well as veterans, law enforcement officers, EMTs, paramedics, and firefighters this program provides for a 30-year loan at a reduced interest rate.

Applicants must have a minimum credit score of 640, meet the same income and purchase price limits as in the Great Choice program, and complete a homebuyer education course if using down payment assistance. They may, though, borrow up to 100% of a home’s purchase price with a loan backed by the Department of Veterans Affairs.

3. Great Choice Plus: Help With a Down Payment or Closing Costs

This is Tennessee Housing’s down payment assistance program, to be used with the Great Choice mortgages. There are two options. The deferred option offers a forgivable second mortgage for $6,000 to be used for down payment and/or closing costs. The loan has a 0% interest rate, and payments are deferred until the end of the 30-year term, at which time the loan is forgiven. If you refinance or sell, the loan is due in full.

The amortizing option provides 5% of the sales price (up to a maximum of $15,000) to be used for down payment and/or closing costs. This second mortgage is repaid in monthly payments over 30 years at an interest rate that is the same as your first mortgage rate.

Borrower requirements are the same as they are for the Great Choice Program.

4. Local First-Time Homebuyer Programs

Local housing initiatives may offer help with down payments, closing costs, and other assistance for first-time buyers in certain areas. The City of Clarksville, for example, has a program for first-time homebuyers.

Recommended: Understanding the Different Types of Mortgage Loans

How to Apply to Tennessee Programs for First-Time Homebuyers

The Tennessee Housing Development Agency website contains clear descriptions and requirements for its mortgage and down payment assistance programs available to first-time homebuyers in the state. The agency does not lend directly, but you can find a list of approved lenders so you can compare interest rates, fees, and other costs. This is particularly important for newbie homebuyers, who may be unfamiliar with the process.

First-time buyers can also find links to approved homebuyer education courses , which are required for participation in most of the THDA’s programs.

Homebuyer education classes can help buyers understand how much mortgage they can afford and what monthly payments they can expect.

In addition, the THDA website provides a list of approved credit counselors who may be able to help potential borrowers who fall below the required credit score of 640.

Federal Programs for First-Time Homebuyers

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

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

Federal Housing Administration (FHA) Loans

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

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

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

FHA loans always require mortgage insurance: a 1.75% upfront fee and annual premiums for the life of the loan, unless you make a down payment of at least 10%, which allows the removal of mortgage insurance after 11 years. For a $300,000 mortgage balance, upfront MIP would be around $5,250 and monthly MIP, at a rate of 0.55%, would be around $137. You can learn more about these loans, including FHA loans for refinance and rehab of properties, by reading up on FHA requirements, loan limits, and rates.

Freddie Mac Home Possible Mortgages

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

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

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

Fannie Mae HomeReady Mortgages

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

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

Fannie Mae Standard 97 LTV Loan

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

Department of Veterans Affairs (VA) Loans

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

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

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

Native American Veteran Direct Loans (NADLs)

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

US Department of Agriculture (USDA) Loans

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

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

HUD Good Neighbor Next Door Program

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

First-Time Homebuyer Stats for 2025

•   Median home list price in Tennessee: $434,137

•   3% down payment: $13,024

•   20% down payment: $86,827

•   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): 706

Who Is Considered a First-Time Homebuyer in Iowa?

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

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

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

5 Iowa Programs for First-Time Homebuyers

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

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

1. FirstHome Program

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

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

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

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

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

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

•   Minimum FICO^® credit score: 640

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

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

2. Homes for Iowans

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

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

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

•   Home purchase price limit: $624,000

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

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

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

3. Down Payment and Closing Costs Programs

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

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

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

4. Military Down Payment Program

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

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

5. Local Assistance

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

How to Apply to Iowa Programs for First-Time Homebuyers

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

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

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

Recommended: Guide to First-Time Home Buying

Federal Programs for First-Time Homebuyers

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

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

Federal Housing Administration (FHA) Loans

The FHA, which is part of the US Department of Housing and Urban Development (HUD), insures mortgages for borrowers with lower credit scores. Homebuyers choose from a list of approved lenders that participate in the FHA loan program. Here are details on this program:

•   Loans have competitive interest rates and require a down payment of 3.5% of the purchase price for borrowers, who typically need FICO® credit scores of 580 or higher. Those with low credit scores (between 500 and 579) must put at least 10% down.

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

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

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

◦   Example: For a $300,000 mortgage balance, upfront MIP would be around $5,250 and monthly MIP, at a rate of 0.55%, would be around $137.

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

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

Freddie Mac Home Possible Mortgages

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

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

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

Fannie Mae HomeReady Mortgages

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

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

Fannie Mae Standard 97 LTV Loan

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

Department of Veterans Affairs (VA) Loans

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

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

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

Native American Veteran Direct Loans (NADLs)

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

US Department of Agriculture (USDA) Loans

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

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

HUD Good Neighbor Next Door Program

Police officers, firefighters, emergency medical technicians, and teachers can get help qualifying for mortgages in the areas they serve with the HUD Good Neighbor Next Door Program . Borrowers can receive 50% off a home in what HUD calls a “revitalization area.” They must live in the home for at least three years. For more information, visit the HUD program page.

Iowa First-Time Homebuyer Stats for 2025

Here’s a snapshot of Iowa homebuyers:

•   Average home value: $227,579

•   Change year over year: 3.9%

•   3% down payment: $6,827.37

•   20% down payment: $45,515.80

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

Additional Financing Tips for First-Time Homebuyers

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

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

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

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

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

•  The mortgage credit certificate program. First-time homeowners and those who buy in targeted areas in Iowa may qualify to claim a portion of their mortgage interest as a tax credit, up to 50% of the interest paid at a $2,000 cap. However, funding is not available as of this writing. It can be wise to check if the Iowa mortgage credit certificate gets additional funding when you are ready to purchase a property.

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

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

The Takeaway

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

Who Is Considered a First-Time Homebuyer in Rhode Island?

To qualify as a first-time homebuyer in Rhode Island, either you must have never owned a home or you must have not owned a home in the last three years.

As a first-time buyer, there are certain types of mortgage loans you’ll want to familiarize yourself with, as well as various ways to help with financing your down payment and other aspects of your upcoming purchase.

5 Rhode Island Programs for First-Time Homebuyers

If you’re a first-time homebuyer in Rhode Island, you may qualify for one or more of these state programs that provide low-interest mortgage loans and other financial assistance. The state agency that administers them is RIHousing, which helps Rhode Islanders with their homeownership and rental housing concerns.

1. RIHousing: First-Time Homebuyer Loan

RIHousing offers a First-Time Homebuyer Loan
for those purchasing a one- to four-family home or eligible condominium with a maximum price of $838,592.

To qualify, your annual household income must be:

•   less than $134,320 for 1 to 2 people

•   less than $154,468 for a family of 3 or more

2. RIHousing: Homebuyer Renovation Mortgage/203k Loan

Interested in a fixer-upper? RIHousing offers a Homebuyer Renovation Mortgage that combines the purchase price of the house and renovation costs into one low-interest loan.

The total purchase and renovation costs can’t exceed FHA Maximum Loan Limits, and you must have a construction contract with a state-licensed and insured general contractor. You are required to take a Homebuyer Education class before closing.

3. RIHousing: 15kDPA

Eligible homebuyers can get a 0.00%-interest down payment/closing costs loan of $15,000 through this program. You pay the loan only when you sell the home or transfer it.

To qualify for RIHousing 15kDPA, you must be a first-time homebuyer and have a credit score of 660. You must also meet housing price and income limits and complete a homebuyer education course.

4. RIHousing: Extra Assistance

With the RIHousing Extra Assistance down payment assistance program for first-time homebuyers, you can receive funding for up to 6% of the purchase price or $20,000, whichever is lower. Your primary loan must be through RIHousing, and this second loan will have the same interest rate and a 15-year term. You need a credit score of 620.

5. RIHousing: FirstGenHomeRI

This program is for first-time homebuyers who are also first-generation homebuyers — meaning someone whose parents never owned a home during their lifetime or lost the home due to a foreclosure or short sale. People who lived in foster care also qualify. FirstGenHomeRI provides $25,000 in down payment and closing cost assistance. The interest rate is 0.00% and the loan is forgivable once you’ve lived in the house for five years.

You must have a credit score of 660, meet housing price and income limits, live in certain communities or areas, have a first mortgage through RIHousing, and complete a homebuyer education course.

Recommended: First-Time Home-Buying Guide

How to Apply to Rhode Island Programs for First-Time Homebuyers

The best way to start your application for any of the programs above is to first click on the links and learn more about the programs and qualifications required. Then you can find a participating lender. They will review your finances and other criteria to ensure that you qualify, and they can guide you through the process.

It may also be helpful to use this mortgage calculator to determine what you’d pay each month for your mortgage.

Federal Programs for First-Time Homebuyers

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

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

Federal Housing Administration (FHA) Loans

The FHA, which is part of the U.S. Department of Housing and Urban Development (HUD), insures mortgages for borrowers with lower credit scores. Homebuyers choose from a list of approved lenders that participate in the FHA loan program. Loans have competitive interest rates and require a down payment of 3.5% of the purchase price for borrowers, who typically need FICO® credit scores of 580 or higher. Those with low credit scores (between 500 and 579) must put at least 10% down.

A few considerations:

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

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

•   FHA loans always require mortgage insurance: a 1.75% upfront fee and annual premiums for the life of the loan, unless you make a down payment of at least 10%, which allows the removal of mortgage insurance after 11 years. For a $300,000 mortgage balance, upfront MIP would be around $5,250 and monthly MIP, at a rate of 0.55%, would be around $137.

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

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

Freddie Mac Home Possible Mortgages

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

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

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

Fannie Mae HomeReady Mortgages

Fannie Mae HomeReady^® Mortgages allow down payments as low as 3% for low-income borrowers. Applicants generally need a credit score of at least 620; pricing may be better for credit scores of 680 and above.

Like the Freddie Mac program, HomeReady loans allow flexibility for down payment financing, such as gifts and grants.

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

Fannie Mae Standard 97 LTV Loan

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

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

Department of Veterans Affairs (VA) Loans

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

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

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

Native American Veteran Direct Loans (NADLs)

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

US Department of Agriculture (USDA) Loans

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

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

HUD Good Neighbor Next Door Program

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

First-Time Homebuyer Stats for 2025

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

•   Average home value in Rhode Island: $487,258

•   3% down payment: $14,618

•   20% down payment: $97,452

•   Typical down payment percentage of first-time homebuyers: 9%

•   Median household income of first-time homebuyers: $97,000

•   Average credit score in Rhode Island: 721