By Kelly Boyer Sagert

(Last Updated – 06/2025)

The University of Virginia (UVA), founded in 1819 by Thomas Jefferson, is a prestigious public research university located in Charlottesville. Known for its historic Jeffersonian architecture and strong commitment to student self-governance. UVA offers a wide range of undergraduate, graduate, and professional programs. It consistently ranks among the top public universities in the U.S.

Total Cost of Attendance

The University of Virginia tuition in 2024-25 for state residents was $21,803. This is significantly higher than the national average of $11,260 for in-state tuition at public universities. For residents of other states, UVA tuition was $59,512, which is well above the national average for out-of-state tuition of $29,150.

Tuition, however, is only part of the total cost of attending college. Here’s a look at other expenses students can expect when attending the University of Virginia.

Costs for 2024-25

Financial Aid

A large share of undergraduates (44%) receive some form of financial aid to help cover the UVA tuition and other costs. This may be scholarships, grants, or student loans, or a combination of these.

Generally, financial aid is monetary assistance awarded to students based on personal need or 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: These 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: Generally based on financial need, these can come from federal, state, private, or nonprofit organizations.

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

•  Federal student loans: This is money borrowed directly from the U.S. Department of Education. It comes 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 and federal and school deadlines may differ.

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:

•  US 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

•  SoFi Scholarship Finder – Use our handy tool to streamline your search by award type, location, level of study and more.

Private Student Loans

Many undergraduates tap student loans to help pay the University of Virginia tuition and other costs: 17% take out federal loans and 5% get private student loans (with an average amount of $18,848).

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, since it generally has 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 tuition 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

The University of Virginia cost of attendance for four years — including tuition and fees, room and board, books, and other expenses — is $167,212 for in-state students (based on 2024-25 numbers). By comparison, the national average at public universities for in-state students is $115,360 for four years.

For out-of-state residents, the four-year cost for attending UVA is $318,048. This is well above the national average of $186,920 for out-of-state cost of attendance.

This student loan and scholarship information may be valuable as you research schools and costs.

Undergraduate Tuition and Fees

Costs for 2024-25

University of Virginia undergraduate tuition and fees for the 2024-25 academic years were $21,803 for in-state students, a 3.8% increase over 2023-34. The tuition and fees for out-of-state students were $59,512, a 2.6% over 2023-34.

Graduate Tuition and Fees

Costs for 2024-25

•   Average graduate tuition (in-state): $19,884

•   Fees (in-state): $3,642

•   Average graduate tuition (out-of-state): $33,304

•   Fees (out-of-state): $4,324

Tuition and fees for graduate students at UVA for 2024-25 averaged $23,526 for in-state students and $37,628 for out-of-state students. The average cost of graduate school tuition and fees in the U.S. is $22,430 per year.

There are graduate loans available to help with these costs

Cost per Credit Hour

If you attend UVA part time (less than 12 credit hours per semester), the cost per credit hour is $263 for Virginia residents and $1,075 for nonresidents.

Campus Housing Expenses

UVA offers a variety of living environments, including traditional residence halls, suites, and apartment complexes. They also offer opportunities to participate in specific living and learning programs, such as residential colleges, language immersion houses, and a transfer student-focused community.

Costs for 2024-25

•   Housing and food expenses (on/off campus): $14,800

•   Other living expenses (on/off campus): $5,206

Total living expenses for 2024-25 were estimated at $20,006, both for students who lived on campus as well as those who lived off campus.

University of Virginia Acceptance Rate

Fall 2023

The University of Virginia acceptance rate is 17%, which makes the school extremely selective.

Admission Requirements

If you’re interested in applying to UVA as a First-Year (the term the school uses for freshman), here’s what you’ll need to submit:

•   Common App

•   Secondary school report

•   One evaluation from an academic subject teacher

•   Standardized test scores (optional)

Students who exhibit exceptional talent in the arts may also submit an arts portfolio through the Common App via Slideroom.

Important deadlines to know:

•   November 1: Early decision deadline (with notification by December 15)

•   November 1: Early action deadline (with notification by By February 15)

•   January 5: Regular decision deadline (with notification by By April 1)

SAT and ACT Scores

Though submitting test scores is optional at UVA, it can be helpful to know the average scores of other students who chose to submit their scores.

Here are the standardized test scores of students who enrolled in UVA in Fall 2023 at the 25th and 75th percentiles.

Popular Majors at UVA

UVA offers more than 80 undergraduate majors. Here are 10 of the most popular areas of study.

1. Economics

Economics majors start with foundational courses in microeconomics, macroeconomics, and econometrics, then choose from a wide variety of electives, such as financial markets, industrial organization, health economics, antitrust policy, and environment economics.

Undergraduate degrees in 2023-24: 299

2. Computer Science

Students can pursue a B.S. in Computer Science through the School of Engineering and Applied Science, or a B.A. degree through the College of Arts and Sciences. Another pathway in computer science is the B.S. in Computer Engineering degree, which is jointly administered with the Electrical and Computer Engineering Department.

Undergraduate degrees in 2023-24: 292

3. Biology

Offered as a B.S. or B.A. degree, the biology program focuses on core concepts and principles in genetics, cell biology, and evolution. Students study the different levels of biological organization, from molecules to ecosystems, and learn how to interpret and critically analyze observational and experimental data.

Undergraduate degrees in 2023-24: 257

4. Psychology

Psychology majors study human behavior and mental processes, exploring a wide range of topics from human development to the brain and social interactions. They delve into areas like cognitive, social, and developmental psychology, along with the biological and neurological bases of behavior.

Undergraduate degrees in 2023-24: 183

5. Nursing

As part of the Bachelor of Science in Nursing, students take coursework in anatomy, physiology, pharmacology, pathophysiology, leadership, and nursing practice. They also conduct research and gain experience in a simulation learning lab. During the second year, they have the opportunity to participate in clinical rotations.

Undergraduate degrees in 2023-24: 120

6. English

UVA’s English department consistently ranks among the top in the nation. Students study closely with diverse and renowned professors and scholars. The program covers British, American, and global Anglophone literatures, from the early Middle Ages to the present day, and teaches methods of critical reading and writing.

Undergraduate degrees in 2023-24: 118

7. Biomedical Engineering

Biomedical engineering majors learn to improve human health through the design of new medical solutions, such as new generation imaging machines, advanced prosthetics, and targeted pharmaceuticals. This program is co-administered with the renowned UVA School of Medicine, uniquely positioning biomedical engineering students for success.

Undergraduate degrees in 2023-24: 112

8. Kinesiology

Kinesiology majors study how human movement and physical activity impact health, society, and quality of life. Areas of study include athletic training, exercise physiology, health education, and sports medicine. Graduates work in health-related fields like medicine, physical or occupational therapy, and athletic training.

Undergraduate degrees in 2023-24: 98

9. Chemistry

Chemistry majors can choose between the B.S. or B.A. in Chemistry. The B.S.program is a pre-professional degree designed for students who plan to become chemists, either by going to graduate school or by working in the chemical industry. The B.A. is a flexible program that prepares students for further study in a wide range of fields.

Undergraduate degrees in 2023-24: 93

10. Architecture

Architecture majors study a blend of design, history, theory, and technology within a studio culture. They develop a strong foundation in design principles and explore various aspects of the built environment, including architectural history, urban planning, and landscape architecture.

Undergraduate degrees in 2023-24: 72

Graduation Rate

The vast majority of UVA students complete their degree in four years. But some students take longer. Here are the graduation rates for students who began at the school in 2017.

•  4 years: 92%

•  6 years: 95%

Post-Graduation Average Earnings

On average, UVA graduates earn an annual salary of $87,000. This is higher than the average projected starting salary for the class of 2025 at the bachelor’s degree level, which is $68,680.

Who Is Considered a First-Time Homebuyer in Alabama?

Let’s take this on first, because the answer is a little counterintuitive.

A first-time homebuyer isn’t just anyone who has never owned a home. It’s anyone who hasn’t held an ownership interest in a primary residence over the past three years. Chances are if you’re buying a home, for the first time or the first time in recent memory, you’re going to need a home mortgage loan, and newcomers to the process have lots of options.

Recommended: First-Time Homebuyer’s Guide

4 Alabama Housing Programs for First-Time Homebuyers

Alabama Housing Finance Authority programs are generally dedicated to low- to moderate-income homebuyers with decent credit who need help with a down payment or closing costs.

Here are details about the AHFA’s main offerings.

1. First Step

AHFA has reintroduced a longtime program, now called First Step, offering first-time or repeat homebuyers below-market interest rates and up to $10,000 in down payment assistance. Nearly 50,000 Alabama households have benefitted from the program financed through Mortgage Revenue Bond loans.

The First Step program features the following:

•   Fixed-rate, 30-year mortgages.

•   Special low mortgage interest rates on FHA, VA, USDA, and Freddie Mac’s HFA Advantage conventional loans

•   Down payment assistance up to $10,000 or 4% of the home price, whichever is lower

•   Down payment funds secured by a 10-year second mortgage combined with the 30-year, fixed-rate First Step mortgage

•   Loan servicing by AHFA’s ServiSolutions, so homeowners write one check each month

To apply, contact a participating lender .

Email [email protected] to get help finding a lender in your area.

2. Step Up

Step Up is the flagship homeownership program of Alabama Housing and is designed specifically for moderate-income first-time and repeat homebuyers who can afford a mortgage, but need help with the down payment. It provides down payment assistance of up to 4% of the home’s sales price (up to $10,000) in the form of a second mortgage packaged with a 30-year, fixed-rate first mortgage.

The Step Up program features the following:

•   Down payment assistance repayable over 10 years.

•   HFA Advantage conventional, FHA, or VA loans

•   Qualifications including a minimum credit score of 640 for borrowers with incomes below 80% of area median income, or 680 for borrowers with incomes above 80% of area median income but less than $159,200

•   Requirement of a debt-to-income (DTI) ratio of less than 45%

•   Income cap of $159,200, regardless of household size or location

•   Homeownership education course requirement for borrowers

3. Affordable Income Subsidy Grant

In addition to Step Up, the Affordable Income Subsidy Grant provides lower-income HFA Advantage conventional loan borrowers with 0.50% to 1% of their total loan amount to assist with closing costs.

The grant is available to both first-time and repeat homebuyers whose income is under 80% of the area median income for the property’s location.

In addition:

•   Homebuyers must have a credit score of 640 or higher

•   DTI must be 45% or lower

•   Must complete a homeownership education course

4. Mortgage Credit Certificate

The mortgage credit certificate allows borrowers to reduce their federal tax liability, dollar by dollar, by a percentage of their annual mortgage interest paid, up to $2,000, for the life of the loan. Any remaining interest can be claimed as an annual mortgage interest dedication.

The certificate can be used with any 30-year fixed-rate amortizing mortgage offered by an AHFA participating lender. You must be a qualified homebuyer or buying a home in a targeted area.

The home purchase price must be under $665,173 for targeted areas or under $544,233 for non-targeted areas.

Mortgage credit rates are based on the loan amount:

•   20% MCC for loans of $150,001 or greater: no cap

•   30% MCC for loans of $100,001 to 150,000: $2,000/year cap

•   50% MCC for loans of $100,000 or less: $2,000/year cap

How to Apply to Alabama Programs for First-Time Homebuyers

If you are seeking AHFA homebuyer assistance, you’ll need to seek out a participating lender. Be sure to verify whether you fall within the prescribed income and purchase price limits. The lender can guide you after that.

If you haven’t crunched some numbers to see how much house you might be able to afford, use a home affordability calculator to do the math.

Recommended: Understanding the Different Types of Mortgage Loans

Federal Programs for First-Time Homebuyers

Several federal government programs exist 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. 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.

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

FHA loans always require mortgage insurance: This includes an upfront fee of 1.75% of the base loan amount, which can be rolled into the loan, and annual premiums for the life of the loan. As of 2025, monthly MIP for new homebuyers is 0.15% to 0.75%. A down payment of at least 10% allows the removal of mortgage insurance after 11 years. For a $300,000 mortgage balance, upfront MIP would be around $5,250 and monthly MIP, at a rate of 0.55%, would be 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. 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 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 website.

HUD Good Neighbor Next Door Program

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

For more information, visit the HUD program page.

Alabama First-Time Homebuyer Stats for 2025

•   Median home price in Alabama: $289,700

•   Number of homes for sale: 26,883

•   Average home value: $234,142

•   Median down payment: $32,550

•   Percent of sales over list price: 16.1%

•   Housing units owner-occupied: 69.9%

•   Average credit score in Alabama: 685

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

•   Median age of first-time homebuyers: 38

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

Additional Financing Tips for First-Time Homebuyers

In addition to federal and state government-sponsored lending programs, while you’re using a mortgage calculator to project mortgage payments, you might want to hone your knowledge about 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 defines a first-time homebuyer, for the purposes of IRA withdrawals, as someone who has not owned a principal residence in the last two years. You will still owe income tax on the IRA withdrawal. If you’re married and your spouse has an IRA, they may also make a penalty-free withdrawal of $10,000 to purchase a home. The downside, of course, is that large withdrawals may jeopardize your retirement savings.

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

•  401(k) loans. If your employer allows borrowing from the 401(k) plan that it sponsors, you may consider taking a loan against the 401(k) account to help finance your home purchase. With most plans, you can borrow up to 50% of your 401(k) balance, up to $50,000, within a 12-month period without incurring taxes or penalties. You pay interest on the loan, which is paid into your 401(k) account. You usually have to pay back the loan within five years, but if you’re using the money to buy a house, you may have up to 15 years to repay.

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

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

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

•  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 Alabama of modest means may be able to take advantage of attractive mortgage and down payment/closing cost programs. Other first-time buyers can hunt for a fitting home loan on their own.

Who Is Considered a First-Time Homebuyer in Missouri?

The definition of first-time buyer is broader than it seems at, well, first. A first-time homebuyer in Missouri and elsewhere is someone who hasn’t owned a primary home in the last three years.

The U.S. Department of Housing and Urban Development (HUD) also includes:

•  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

Veterans and people buying in federally targeted areas are eligible for the same advantages as first-time homebuyers are in the state programs.

💡 Quick Tip: With SoFi, it takes just minutes to view your rate for a home loan online.

3 Missouri Programs for First-Time Homebuyers

The Missouri Housing Development Commission leads the way in providing low-interest mortgage loans and financial assistance to those who meet the standards.

Before reviewing those opportunities, however, do you know how much you can afford to pay for a home in Missouri? An online home affordability calculator can help provide an estimate.

1. MHDC: First Place Program

Missouri Housing provides a pool of money at below-market interest rates that lenders can use to provide 30-year, fixed-rate FHA, VA, USDA, and HFA Advantage conventional loans to first-time homebuyers and qualified veterans.

The First Place program also offers cash and non-cash assistance loans.

The cash assistance loan is a forgivable second mortgage of 4% of the first mortgage amount that can be used for closing costs and a down payment. The loan will be forgiven after 10 years as long as you live in the home.

The non-cash assistance loan, also forgivable after 10 years, has a lower interest rate. The loans are best for buyers who can pay their own down payment and closing costs.

Credit score? Missouri Housing notes that applicants should have a minimum credit score of 640. Income and purchase price limits apply. Learn more about the program by visiting the Missouri Housing website .

2. MHDC: Next Step Program

The Next Step program allows higher income and purchase price limits for first-time and repeat buyers. A 30-year fixed-rate mortgage can be used along with the mortgage credit certificate, an annual dollar-for-dollar tax credit.

Next Step also gives borrowers the opportunity to receive cash assistance for a down payment and closing costs in the form of a 10-year forgivable loan.

Read more about the Next Step Program to learn about qualifications.

3. Local Assistance

It’s a good idea to look into any city or county assistance available where you plan to put down roots.

For first-time buyers and some single parents and displaced homemakers, the city of Columbia offers down payment/closing cost assistance of $5,000 to $10,000 in the form of a 10-year forgivable loan at 0% interest. The minimum credit score is 600. There are income and purchase price limits. Learn more at the city’s Community Development site.

Springfield offers help with a down payment or closing costs in the form of a 10-year loan for up to $9,000 with no interest or payments. You must be a first-time homebuyer or a certain displaced person with household income under 80% of the Springfield median income. The home mustn’t cost more than $175,000 and must be within a target area in Springfield.

You can learn more from the City of Springfield Planning and Development site.

How to Apply to Missouri Programs for First-Time Homebuyers

Contact a participating lender for the Missouri Housing programs. The lender will let you know if you qualify and, if so, will guide you through the whole process.

For the city programs, visit the links above to read more about qualifying and next steps.

Recommended: Understanding the Different Types of Mortgage Loans

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. If you have a lower credit score (500 to 579), you must put at least 10% down.

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

Also worth noting: 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.

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

Active-duty members of the military, veterans, and eligible family members 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. It’s worthwhile to note these points:

•   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.

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. To learn more, contact [email protected].

US Department of Agriculture (USDA) Loans

No down payment is needed for 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 firefighters, police officers, teachers, and emergency medical technicians 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.

First-Time Homebuyer Stats for 2025

Here’s some data about Missouri home sales.

•  Average home value: $258,766

•  3% down payment: $7,763

•  20% down payment: $51,753

•  Average credit score in Missouri: 714

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 permits qualifying first-time homebuyers a one-time, penalty-free withdrawal of $10,000 or less from their IRA if the money is used to buy, build, or rebuild a home. For the purpose of IRA withdrawals for a home purchase, the IRS considers a first-time buyer anyone who has not owned a principal residence in the last two years. You will still owe income tax on the IRA withdrawal, so consult your tax advisor.

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 can 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 will allow 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 or even 25 years to repay.

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

•  The mortgage credit certificate program. First-time homeowners and those who buy in targeted areas can 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.

A few considerations: 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 homebuying education courses. Once you know how much house you can afford, this could be a valuable option.

•  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 Missouri with low to moderate income may qualify for help with a mortgage, down payment, and closing costs. There are local and state programs available. In addition, federal and commercial lenders may be able to make homeownership dreams a reality.

By Walecia Konrad

(Last Updated – 06/2025)

The Louisiana housing market is a welcoming one. The average home value is $208,234, and has held fairly steady year over year, according to Zillow. Compare this to the national figure of $367,711, which is up 1.4% over the past year.

But just because home prices may be lower than in some other areas of the U.S. doesn’t mean that buying a first home is necessarily easy. That’s why it’s valuable to know that Louisiana offers several first-time homebuyer programs for low- and middle-income residents that can help newcomers break into the real estate market.

Read on to learn about ways to make buying your first home more affordable when you are house-hunting in Louisiana.

Who Qualifies as a First-Time Homebuyer?

If you’ve never bought a home, of course you’re a first-time homebuyer. But the U.S. Department of Housing and Urban Development (HUD) also classifies the following as first-time homebuyers:

•   Someone who hasn’t owned a principal residence in the past three years

•   A single parent who has only owned a home with a partner while married

•   A displaced homemaker who has only owned a home with a spouse

•   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

Also worth noting: Veterans often qualify for the same programs as first-time buyers.

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

6 Louisiana Programs for First-Time Homebuyers

The Louisiana Housing Corporation (LHC) allocates federal and state funds to low- and moderate-income homebuyers. It was created in 2011 in a merger of the Louisiana Housing Finance Agency with housing programs from other state agencies, including the Disaster Housing Task Force. The move helped centralize Louisiana’s housing policies and programs.

Many of LHC’s programs allow the purchase of a variety of properties, including single-family homes, condominiums, townhomes, modular homes, and manufactured homes. Here’s a closer look at LHC’s programs for first-time homebuyers, generally those who haven’t owned a principal home within the past three years.

1. LHC Mortgage Revenue Bond Home Program

This mortgage program is designed for buyers with incomes up to 80% of the area median income. Mortgage rates are usually below market, and down payment and closing cost assistance varies, depending on the amount of the loan. Discounted mortgage insurance premiums are also available. There are purchase price limits. Candidates must have a minimum credit score of 640 and complete a homebuyer education course.

2. LHC Mortgage Revenue Bond Assisted Program

This LHC MRB program helps first-time homebuyers and repeat buyers who plan to live in designated areas. Buyers in these areas with up to 140% of area median income may qualify. Interest rates on these loans are usually in line with the market. Down payment assistance is available through a second mortgage program.

Candidates must have a credit score of 640 and complete a homebuyer education course. The purchase price may not exceed limits set by the program.

3. LHC Premier Conventional Program

These loans are available to first-time homebuyers and repeat buyers who meet income requirements. Rates for 30-year fixed mortgages are competitive, and reduced mortgage insurance is available. The loan can be paired with LHC’s down payment assistance programs.

First-time buyers will need to complete a homebuyer education course; the 640 credit score minimum exists for all buyers. Unlike other LHC programs, this loan can only be used to purchase a single-family residence, and maximum loan amounts exist.

4. HC Delta 100 Program

The Delta 100 is aimed at first-time homebuyers without a credit history in specific Louisiana parishes. Mortgages are 30-year fixed at below market rates, with up to 3% closing cost assistance. The Delta 100 program requires borrowers to contribute 1% of the home purchase price or $1,500, whichever is less. Gifts are not allowed.

No credit score is needed. The loans can only be used for single-family homes. Buyers must complete a homebuyer education course.

5. Louisiana’s Resilience Soft Second Program

The Resilience Soft Second Program offers first-time homebuyers in the 51 parishes impacted by the 2016 floods a second mortgage of 20% of the home’s purchase price, up to $55,000. A maximum of $5,000 in closing costs is also included. Buyers who stay in the home as their primary residence for 10 years qualify for loan forgiveness.

To qualify, buyers must have income at or below 80% of the area median income and meet other qualifications. In addition, they must be buying a single-family home, condo, or townhome under certain purchase price limits and not in a flood zone. They also must complete a homebuyer education course.

6. Louisiana Mortgage Credit Certificate Program

Qualifying first-time homebuyers, veterans, and low- to moderate-income buyers purchasing a home in designated areas can take this Mortgage Credit Certificate Program assistance of a federal tax credit of 40% of their annual mortgage interest payments, up to $2,000 per year. Household income limits depend on the property location and household size. The credit can be taken for as long as the property is the buyer’s primary residence.

When looking into these programs, it’s also wise to review a general first-time homebuyer guide, so you can prepare for the process ahead.

How to Apply to Louisiana Programs for First-Time Homebuyers

Get information and help figuring out if any of the programs listed above are right for you on the Louisiana Home Corporation website. Links are provided above. Purchase price and income limits for the Mortgage Revenue Bond programs and other details are also on the site.

LHC is not a lender, but the agency provides a list of approved partners for each program that you can use to find and compare lenders in your area.

For many programs, completion of LHC’s homebuyer education is required. This can help buyers understand how much mortgage they can afford and estimate monthly payments.

Some towns and nonprofits also have local programs for first-time homebuyers. So another smart move is to search online for the name of the town where you’d like to live plus the phrase “first-time homebuyer”.

Recommended: Understanding the Different Types of Mortgage Loans

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 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. Review your options carefully to see if you can lower your mortgage payments with one of these programs.

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.

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.

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% or 50% maximum for a conventional loan.

Gift money for the down payment is allowed from certain donors, which can be helpful. It will likely need to 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.

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. You’ll 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.

Need information about Fannie Mae lenders in your area? Contact the Fannie Mae Resource Center .

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, as the name may suggest. 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 it does have cancellable mortgage insurance. The loan is for just one-unit single-family homes, co-ops, condos, planned unit developments, and eligible manufactured homes.

Department of Veterans Affairs (VA) Loans

Active-duty members of the military, veterans, and eligible 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.

Here’s another benefit of VA loans: 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.

💡 Quick Tip: Active duty service members who have served for at least 90 consecutive days are eligible for a VA loan. But so are many veterans, surviving spouses, and National Guard and Reserves members. It’s worth exploring with an online VA loan application because the low interest rates and other advantages of this loan can’t be beat.†

Native American Veteran Direct Loans (NADLs)

Eligible Native American veterans and their spouses may use these 0% down loans to buy, improve, or build a home on federal trust land. The Department of Veterans Affairs is the lender for NADLs. The funding fee applies. To learn more, contact [email protected].

U.S. Department of Agriculture (USDA) Loans

No down payment is required for USDA-backed loans for property in specified rural areas. Borrowers must meet income requirements, and there are fees associated with these loans. Eligible properties are listed by region on the USDA website .

U.S. Department of Housing and Urban Development (HUD) Good Neighbor Next Door Program

Police officers, firefighters, emergency medical technicians, and teachers can receive 50% off a home in a “revitalization area.” To qualify, borrowers must live in the home for at least three years. HUD offers more information on homeownership programs in Louisiana on its website.

Louisiana Homebuyer Stats for 2025

Here’s a snapshot of the typical home purchase in Louisiana.

•  Average home value: $208,234

•  Median down payment: $20,500

•  Average credit score among homebuyers: 690

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. When it comes to IRA withdrawals, 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 take a big 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. With accounts held for less than five years, homebuyers will have to pay income tax on earnings withdrawn.

•  401(k) loans. If your employer permits borrowing from the 401(k) plan that it sponsors, you may consider taking a loan against the 401(k) account to help finance your home purchase. With most plans, you can borrow up to 50% of your 401(k) balance, up to $50,000, within a 12-month period without incurring any 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.

Note: 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

Louisiana supports several first-time home-buying programs that can help residents achieve their goal of homeownership. This can be in the form of assistance with a down payment, mortgage, closing costs, and other expenses. In addition to statewide programs, there are initiatives for residents living in specific parishes. Low- and moderate-income Louisianans may find alternatives among the federal government’s first-time homebuyer programs, as well as offers from private lenders.