Current Mortgage Rates in Erie, PA Today
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Compare mortgage rates in Erie, PA.
Key Points
• Mortgage interest is the fee you pay to borrow money from a lender, usually expressed as a percentage of the loan amount.
• Fixed-rate mortgages provide stability, while adjustable-rate mortgages (ARMs) offer fluctuating rates.
• Mortgage rates are influenced by economic conditions and the borrower’s financial profile.
• Even a small change in mortgage rates can make a big difference in your monthly payments and the total amount you’ll pay over the life of the loan.
• Pennsylvania has a variety of programs to help first-time homebuyers.
Introduction to Mortgage Refinance Rates
Mortgage rates are a key consideration for anyone buying a home or refinancing an existing home loan. After all, the interest rate plays a big part in how much your monthly mortgage payment will be. The type of mortgage, the size of the loan, the down payment, the length of the loan, the lender, and your credit score all play a role in what your mortgage rate will be. In this guide, we’ll cover how a mortgage interest rate is determined, what factors affect the rate you can get in Erie, Pennsylvania, and how you can get the best rate possible.
First-time homebuyer programs are the fees charged by lenders for borrowing money to purchase a home. These mortgage rates are determined by a complex combination of factors that can be separated into two buckets: the state of the economy and the borrower’s financial status.
Where Mortgage Rates Come From
Mortgage rates are the result of a complex interplay between the broader economic landscape and your personal financial situation. Keep an eye on the bond market, especially the 10-year U.S. Treasury Note, as rates often rise or fall in tandem with this bond price. A cooling housing market can mean lower rates, while a robust economy and rising inflation can nudge them upward.
But economic factors are only part of the picture. Your own financial stats add another layer of complexity as a lender decides what rate to offer you. Lenders will look at the following:
• Your credit score A conventional mortgage (one not backed by a government agency) typically requires a credit score of 620 or higher. The higher the score, the lower the rate you’ll likely get.
• Your down payment amount Making a larger down payment can result in a lower interest rate because lenders see a lower default risk.
• Your debt-to-income (DTI) ratio Mortgage lenders generally like to see a DTI ratio of no more than 36%, though that is not necessarily the maximum.
More home loan resources.
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First-Time Homebuyer Guide
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First-Time Homebuyer Programs and Loans
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Mortgage Preapproval Process
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Current Mortgage Rates in Richmond, VA Today
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Compare mortgage rates in Richmond.
Key Points
• Mortgage rates in Richmond, Virginia, are influenced by a variety of factors, both economic and specific to the borrower.
• Check your credit score before you start mortgage shopping.
• Consider a bigger down payment to secure a lower interest rate.
• Explore fixed-rate and adjustable-rate mortgages to find the best fit for you.
• Once you’ve found the right loan, consider locking in the rate.
Introduction to Mortgage Rates
Getting a handle on mortgage rates is important, especially if you’re a first-time homebuyer in Richmond, Virginia. This comprehensive guide will walk you through the process of how home loan rates are determined in your area. We’ll help you understand how to secure the most favorable rate for your unique situation. By the time you’re through, you’ll be equipped to make savvy decisions during your home-buying journey, potentially saving you a substantial amount over the long term.
First-time homebuyer programs usually consider anyone who hasn’t owned a home in the previous three years to be a “first-timer.” If you think you might qualify as a first-time homebuyer, you could enjoy special benefits such as lower down payment minimums, grants, and closing cost assistance.
Where Mortgage Rates Come From
Economic Factors Influencing Mortgage Rates
• The bond market, particularly the 10-year U.S. Treasury Note, has historically signaled where mortgage rates are headed. When the rates on the note rise, mortgage interest tends to rise too.
• The housing market also plays a role. When the market cools and more homes are available than there are buyers, lenders may lower rates.
• Inflation and unemployment also play a role. When the economy is strong, mortgage rates tend to rise. A recession is usually accompanied by lower mortgage rates.
Borrower Factors Influencing Mortgage Rates
• Your credit score is a big deal. The higher the score, the lower the rate you’ll likely obtain. Conventional lenders typically look for a score of 620 or higher. Government mortgages are more lenient.
• The amount of your down payment plays a role. Making a larger down payment can result in a lower interest rate.
• Your debt-to-income (DTI) ratio is important. In general, mortgage lenders like to see a DTI ratio of no more than 36%, though that is not necessarily the maximum.
More home loan resources.
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First-Time Homebuyer Guide
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First-Time Homebuyer Programs and Loans
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Mortgage Preapproval Process
Apply online or call us for a complimentary mortgage consultation.
Current Mortgage Rates in Puxico, MO Today
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Compare mortgage rates in Puxico.
Key Points
• Mortgage rates in Puxico, Missouri are influenced by a variety of factors, including economic conditions and a borrower’s financial health.
• Fixed-rate mortgages offer stability, while adjustable-rate mortgages (ARMs) can provide lower initial rates.
• A higher credit score and a larger down payment can lead to better mortgage rates.
• Over the years, mortgage rates have seen their fair share of ups and downs.
• Local homebuyer assistance programs and federal loan options can make homeownership more achievable.
Introduction to Puxico Mortgage Interest Rates
Welcome to our guide to mortgage rates in Puxico, Missouri. Mortgage interest rates are a critical aspect of home financing and significantly impact the overall cost of purchasing a home. This guide aims to help you understand the factors that determine mortgage rates in Puxico, and how you can work toward securing the lowest home loan rate possible.
To start, especially if you are buying your first home, it might help to understand how lenders decide on your rate in the first place.
Mortgage interest rates are the fees charged by lenders for borrowing money to purchase a home. These mortgage rates are determined by a complex combination of factors that can be separated into two buckets: the state of the economy and the borrower’s financial status.
Where Mortgage Rates Come From
Mortgage rates are influenced by a variety of factors tied to the economy and the financial markets. The bond market, particularly the 10-year U.S. Treasury Note, is viewed as a good indicator of where mortgage rates are headed. The performance of the housing market, inflation and unemployment also influence mortgage rates. Generally, when the economy is doing well, mortgage rates will rise. Understanding these key factors can help you lock in the best mortgage rates in Missouri at the right time for you and your family.
Once a lender has a general idea of the rate it will charge, it will fine-tune the percentage based on each borrower’s personal financial metrics. These include:
• Your credit score A conventional mortgage (one not backed by a government agency) typically requires a score of 620 or more — but the higher, the better.
• Your down payment amount A larger down payment can result in a lower interest rate.
• Your debt-to-income (DTI) ratio In general, mortgage lenders like to see a DTI ratio of no more than 36%, though that is not necessarily the maximum.
More home loan resources.
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First-Time Homebuyer Guide
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First-Time Homebuyer Programs and Loans
-
Mortgage Preapproval Process
Apply online or call us for a complimentary mortgage consultation.
Vermont First-Time Home Buying Assistance Programs & Grants
Vermont First-Time Home-Buying Assistance Programs & Grants
(Last Updated – 06/2025)
The Green Mountain State is a nature lover’s paradise with forests, lakes, and mountains, and in the past year it has been popular with homebuyers as well, with more than a quarter of homes selling above list price as of April 2025. Prices were up 2.4% as well, according to Redfin, hitting a median sale price of $439,500.
The good news is, if you’re a first time home buyer in Vermont, there are state and federal programs to help you purchase your home. This home buying guide can help walk you through the process.
Who Is Considered a First-Time Homebuyer in Vermont?
You qualify if you’ve never owned a home, of course, but you are also considered a first-time homeowner in Vermont if you haven’t owned a house in the last three years. In addition, the U.S. Department of Housing and Urban Development (HUD) considers you a first-time home buyer if you’re a single parent who has only owned a home with a partner while married, or a displaced homemaker who has only owned a home with a spouse. Be sure to check with any home buying assistance program you’re considering as you embark on your search for a home and a home mortgage loan, because requirements can differ. Not sure where to put down roots? Have a look at a list of the best affordable places in Vermont.
5 Vermont Programs for First-Time Homebuyers
There are several state programs for the first-time homebuyer in Vermont. Many are designed for people with low incomes or those who don’t have good credit scores. The Vermont Housing Finance Agency (VHFA) offers a number of them.
1. VHFA: MOVE
The MOVE program offers first-time homebuyers 30-year, fixed-rate mortgage loans with low down payments. To qualify, you must meet purchase price and income limits. At least one member of the purchase household must take a homebuyer education course.
2. VHFA: ADVANTAGE
The Advantage program is a low-interest 30-year loan for candidates who do not qualify for MOVE. There is no first-time homebuyer requirement unless buyers are using a VHFA down payment assistance program. This program has higher income and purchase price limits than MOVE.
3. VHFA: ASSIST Down Payment and Closing Cost Assistance
VHFA’s ASSIST program offers a 0% interest loan with no monthly payments due on sale to help with down payment and closing costs, with a maximum loan amount of either $10,000 or $15,000 (based on income). To qualify, borrowers and non-borrowing spouses must be first-time homebuyers with combined assets of less than $30,000.
4. VHFA: Mortgage Credit Certificate (MCC)
VHFA’s Mortgage Credit Certificate (MCC) provides a Federal tax credit up to $2,000 for every year you live in your home and pay interest on the mortgage. This is available to those in the MOVE program as well as to eligible homebuyers with non-VHFA mortgages.
5. Champlain Housing Trust (CHT)
If you’re interested in a home in Northwest Vermont, check out the Champlain Housing Trust (CHT) Shared Equity Program. It helps low- and moderate-income homebuyers purchase a home without a down payment and with a reduced mortgage. In order to qualify, you must fall into a certain income range; cannot own another home or have significant assets outside of retirement savings. You’ll have to pay the closing costs, and when you sell the home you sell it back through the trust to another qualified buyer.
Recommended: First-Time Homebuyer Guide
How to Apply to Vermont Programs for First-Time Homebuyers
You can choose from many types of mortgage loans. You can also apply to the programs we’ve discussed for the first-time homebuyer in Vermont through VHFA participating lenders. Just be sure to check the requirements before applying.
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, they can be especially helpful to people who are buying a first home or who haven’t owned a home in several years.
These mortgages are generally for single-family homes, two- to four-unit properties that will be owner occupied, approved condos, townhomes, planned unit developments, and some manufactured homes.
Federal Housing Administration (FHA) Loans
The FHA, which is part of the U.S. Department of Housing and Urban Development (HUD), insures mortgages for borrowers with lower credit scores. Homebuyers choose from a list of approved lenders that participate in the FHA loan program. Loans have competitive interest rates and require a down payment of 3.5% of the purchase price for borrowers, who typically need FICO® credit scores of 580 or higher. Those with scores as low as 500 must put at least 10% down.
In addition to examining your credit score, lenders will look at your debt-to-income ratio (DTI, your monthly debt payments compared with your monthly gross income). FHA loans allow a DTI ratio of up to 50% in some cases, vs. a typical 45% maximum for a conventional loan.
Gift money for the down payment is allowed from certain donors and will be documented in a gift letter for the mortgage.
FHA loans always require mortgage insurance: a 1.75% upfront fee and annual premiums for the life of the loan, unless you make a down payment of at least 10%, which allows the removal of mortgage insurance after 11 years. For a $300,000 mortgage balance, upfront MIP would be around $5,250, and monthly MIP, at a rate of 0.55%, would be around $137. You can learn more about these loans, including FHA loans for refinance and rehab of properties, by reading up on FHA requirements, loan limits, and rates.
Freddie Mac Home Possible Mortgages
Very low- and low-income borrowers may make a 3% down payment on a Home Possible® mortgage. These loans allow various sources for down payments, including co-borrowers, family gifts, employer assistance, secondary financing, and sweat equity.
The Home Possible mortgage is for buyers who have a credit score of at least 660.
Once you pay 20% of your loan, the Home Possible mortgage insurance will be canceled, which will lower your mortgage payments.
Fannie Mae HomeReady Mortgages
Fannie Mae HomeReady® Mortgages allow down payments as low as 3% for low-income borrowers. Applicants generally need a credit score of at least 620; pricing may be better for credit scores of 680 and above. Like the Freddie Mac program, HomeReady loans allow flexibility for down payment financing, such as gifts and grants.
For income limits, a comparison to an FHA loan, and other information, go to this Fannie Mae site .
Fannie Mae Standard 97 LTV Loan
The conventional 97 LTV loan is for first-time homebuyers of any income level who have a credit score of at least 620 and meet debt-to-income criteria. The 97% loan-to-value mortgage requires 3% down. Borrowers can get down payment and closing cost assistance from third-party sources.
Department of Veterans Affairs (VA) Loans
Eligible active-duty members of the military, veterans, reservists, and surviving spouses may apply for loans backed by the Department of Veterans Affairs. Here’s a quick look at what is a VA loan: They can be used to buy, build, or improve homes, have lower interest rates than most other mortgages, and don’t require a down payment. Most borrowers pay a one-time funding fee that can be rolled into the mortgage.
Another benefit of VA loans is that they do not require private mortgage insurance (PMI) for borrowers who make a down payment of less than 20%. And they have more flexible credit score requirements. In some cases, even those who have previously been in foreclosure or bankruptcy can qualify.
Borrowers applying for a VA loan will need a Certificate of Eligibility from the VA so make sure to review a guide to qualifying for a VA loan as a first step in the process.
Native American Veteran Direct Loans (NADLs)
Eligible Native American veterans and their spouses may use these no-down-payment loans to buy, improve, or build a home on federal trust land. Unlike VA loans listed above, the Department of Veterans Affairs is the mortgage lender on NADLs. The VA requires no mortgage insurance, but it does charge a funding fee.
US Department of Agriculture (USDA) Loans
No down payment is required on these loans to moderate-income borrowers that are guaranteed by the USDA in specified rural areas. Borrowers pay an upfront guarantee fee and an annual fee that serves as mortgage insurance.
The USDA also directly issues loans to low- and very low-income people. For loan basics and income and property eligibility, head to this USDA site .
HUD Good Neighbor Next Door Program
This program helps police officers, firefighters, emergency medical technicians, and teachers qualify for mortgages in the areas they serve. Borrowers can receive 50% off a home in what HUD calls a “revitalization area.” They must live in the home for at least three years. You can reach the Burlington Field Office of HUD at 802-951-6290.
First-Time Homebuyer Stats for 2025
• Median home sale price in Vermont: $439,500
• 3% down payment: $13,185
• 20% down payment: $87,900
• 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): 737
Financing Tips for First-Time Homebuyers
As you learn about mortgage basics and how to choose mortgage term loans, you may want to also learn how to lower your mortgage payment. Here are some tips that can help.
• Traditional IRA withdrawals. The IRS allows qualifying first-time homebuyers a one-time, penalty-free withdrawal of up to $10,000 from their IRA if the money is used to buy, build, or rebuild a home. For this purpose, the IRS considers anyone who has not owned a primary residence in the past two years a first-time homebuyer. You will still owe income tax on the IRA withdrawal. If you’re married and your spouse has an IRA, they may also make a penalty-free withdrawal of $10,000 to purchase a home. The downside, of course, is that large withdrawals may jeopardize your retirement savings.
• Roth IRA withdrawals. Because Roth IRA contributions are made with after-tax money, the IRS allows tax- and penalty-free withdrawals of contributions for any reason as long as you’ve held the account for five years. You may also withdraw up to $10,000 in earnings from your Roth IRA without paying taxes or penalties if you are a qualifying first-time homebuyer and you have had the account for five years. With accounts held for less than five years, homebuyers will pay income tax on earnings withdrawn.
• 401(k) loans. If your employer allows borrowing from the 401(k) plan that it sponsors, you may consider taking a loan against the 401(k) account to help finance your home purchase. With most plans, you can borrow up to 50% of your 401(k) balance, up to $50,000 in a 12-month period, without incurring taxes or penalties. You pay interest on the loan, which is paid into your 401(k) account. You usually have to pay back the loan within five years, but if you’re using the money to buy a house, you may have up to 15 years to repay.
• State and local down payment assistance programs. Usually offered at the regional or county level, these programs provide flexible second mortgages for first-time buyers looking into how to afford a down payment.
• 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.
Use this home affordability calculator to understand how much you can afford to pay for a home in Vermont.
The Takeaway
The housing market in Vermont can be challenging, but as a first-time homebuyer, there are many state and federal programs available that can help you achieve your goal.
Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% - 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It's online, with access to one-on-one help.
FAQ
Should I take first-time homebuyer classes?
Yes! Good information is key to a successful home-buying experience for anyone, but especially for newcomers, who can easily be overwhelmed by the jargon, technicalities, and magnitude of applying for a mortgage and purchasing a home. First-time homebuyer classes can help. Indeed they are required for some government-sponsored loan programs.
Do first-time homebuyers with bad credit qualify for homeownership assistance?
Many government and nonprofit homeowner assistance programs are available to people with low credit scores. And often, interest rates and other loan pricing are competitive with those of loans available to borrowers with higher credit scores. That said, almost any lending program has credit qualifications. That’s why it’s important to take all possible steps to improve your credit standing before you go house hunting.
Is there a first-time homebuyer tax credit in Vermont?
There is a mortgage credit certificate program for first-time homeowners and other eligible buyers in Vermont. With it, you can claim a portion of your mortgage interest as a tax credit, up to $2,000.
Is there a first-time veteran homebuyer assistance program in Vermont?
Yes. The U.S. Department of Veterans Affairs offers home loans to service members, veterans, and eligible surviving spouses.
What credit score do I need for first-time homebuyer assistance in Vermont?
Credit score requirements vary, depending on the homebuyer assistance program and the lender but it is not unusual to see a minimum required credit score of 640 or 620.
What is the average age of first-time homebuyers in Vermont?
The median age of first-time homebuyers in the U.S. is 38.
Photo credit: iStock/haveseen
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*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
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¹FHA loans are subject to unique terms and conditions established by FHA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. FHA loans require an Upfront Mortgage Insurance Premium (UFMIP), which may be financed or paid at closing, in addition to monthly Mortgage Insurance Premiums (MIP). Maximum loan amounts vary by county. The minimum FHA mortgage down payment is 3.5% for those who qualify financially for a primary purchase. SoFi is not affiliated with any government agency.
†Veterans, Service members, and members of the National Guard or Reserve may be eligible for a loan guaranteed by the U.S. Department of Veterans Affairs. VA loans are subject to unique terms and conditions established by VA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. VA loans typically require a one-time funding fee except as may be exempted by VA guidelines. The fee may be financed or paid at closing. The amount of the fee depends on the type of loan, the total amount of the loan, and, depending on loan type, prior use of VA eligibility and down payment amount. The VA funding fee is typically non-refundable. SoFi is not affiliated with any government agency.
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Qualifying for the reward requires using a real estate agent that participates in HomeStory’s broker to broker agreement to complete the real estate buy and/or sell transaction. You retain the right to negotiate buyer and or seller representation agreements. Upon successful close of the transaction, the Real Estate Agent pays a fee to HomeStory Real Estate Services. All Agents have been independently vetted by HomeStory to meet performance expectations required to participate in the program. If you are currently working with a REALTOR®, please disregard this notice. It is not our intention to solicit the offerings of other REALTORS®. A reward is not available where prohibited by state law, including Alaska, Iowa, Louisiana and Missouri. A reduced agent commission may be available for sellers in lieu of the reward in Mississippi, New Jersey, Oklahoma, and Oregon and should be discussed with the agent upon enrollment. No reward will be available for buyers in Mississippi, Oklahoma, and Oregon. A commission credit may be available for buyers in lieu of the reward in New Jersey and must be discussed with the agent upon enrollment and included in a Buyer Agency Agreement with Rebate Provision. Rewards in Kansas and Tennessee are required to be delivered by gift card.
HomeStory will issue the reward using the payment option you select and will be sent to the client enrolled in the program within 45 days of HomeStory Real Estate Services receipt of settlement statements and any other documentation reasonably required to calculate the applicable reward amount. Real estate agent fees and commissions still apply. Short sale transactions do not qualify for the reward. Depending on state regulations highlighted above, reward amount is based on sale price of the home purchased and/or sold and cannot exceed $9,500 per buy or sell transaction. Employer-sponsored relocations may preclude participation in the reward program offering. SoFi is not responsible for the reward.
SoFi Bank, N.A. (NMLS #696891) does not perform any activity that is or could be construed as unlicensed real estate activity, and SoFi is not licensed as a real estate broker. Agents of SoFi are not authorized to perform real estate activity.
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Texas First-Time Home Buying Assistance Programs & Grants
Texas First-Time Home-Buying Assistance Programs & Grants
(Last Updated – 06/2025)
Texas home prices may sound like a bargain: The average property value is $307,629, according to Zillow, vs. the national average of $367,711. But many first-time homebuyers can find the down payment, mortgage, and closing costs associated with a purchase hard to wrangle.
That’s where first-time homebuyer programs can help. They can provide assistance to those who qualify with the price of homeownership. Often, a prospective buyer must meet certain income or credit score criteria.
Read on to learn about these opportunities.
Who Is Considered a First-Time Homebuyer in Texas?
Anyone who hasn’t owned a primary home in the past three years is considered a first-time homebuyer in Texas, which jibes with the federal government’s definition. The U.S. Department of Housing and Urban Development (HUD) has other eligibility criteria for first-time homebuyers. These include a single parent who has only owned a home with a partner while married, and a displaced homemaker who has only owned a home with a spouse. Veterans may qualify for some of the same programs first-time buyers do.
Be aware that some benefit programs waive the first-time homeowner requirement for people purchasing a property in a qualified targeted census tract and for veterans.
💡 Quick Tip: Want the comforts of home and to feel comfortable with your home loan? SoFi has a simple online application and a team dedicated to closing your loan on time. No surprise SoFi has been named a Top Online Lender in 2024 by LendingTree/Newsweek.
6 Texas Programs for First-Time Homebuyers
The Texas Department of Housing and Community Affairs (TDHCA), the state agency responsible for affordable housing, offers several homebuyer programs for both first-time and repeat buyers who meet certain income and purchase price limits.
In addition, the Texas State Affordable Housing Corporation is a nonprofit that helps low-income homebuyers break into the Texas real estate market. To participate in the two agencies’ programs, buyers must take a homebuyer education course, which can help them understand how much home they can afford, what fees are involved, and how the lending and closing processes work.
Texas is also home to local mortgage and down payment assistance programs. Here’s a look at some specific programs.
1. My First Texas Home
The My First Texas Home program for first-time buyers and military veterans from TDHCA offers a 30-year low-interest mortgage backed by the FHA, VA, or USDA. Up to 5% of the mortgage is available in an interest-free, no-payment second mortgage for down payment assistance. The loan is repaid only if you sell your home, refinance, or pay off your mortgage.
Buyers must have a credit score of 620 or above and meet the TDHCA income and purchase price limits determined by county.
2. My Choice Texas Home
Also a TDHCA program, My Choice Texas Home is available to first-time and repeat buyers. The 30-year, low-interest rate mortgages are guaranteed by the FHA, VA, and USDA. This program also offers conventional loans.
Like My First Texas Home, buyers can receive up to 5% in an interest-free, no-payment second mortgage for down payment assistance.
Buyers must have a credit score of 620 or above and meet the same TDHCA income limits as above.
3. Home Sweet Texas Home Loan Program
A good first step to see what Texas State Affordable Housing Corporation programs you might qualify for is to watch a video and take an eligibility quiz .
The Home Sweet Texas Home Loan Program offers first-time and repeat buyers a 30-year FHA, VA, USDA, or HFA conventional loan and includes up to 5% in down payment assistance, which can be a grant or a no-interest, no-payment second mortgage that is forgiven after three years unless you sell your home or refinance your mortgage before that.
Borrowers need to meet income and purchase price requirements and have a credit score of at least 620.
4. Homes for Texas Heroes
The Texas State Affordable Housing Corporation also offers the Homes for Texas Heroes program. This is a 30-year fixed-rate mortgage for veterans and certain public service professionals such as public school teachers, librarians, counselors, and nurses, as well as firefighters and corrections officers.
Like the Home Sweet Texas Home program, up to 5% down payment assistance is available as a grant or no-interest, no-payment second mortgage that’s forgivable.
In addition to being a veteran or public servant, borrowers must have a credit score of 620 or above and meet income and purchase price requirements.
5. Local Mortgage and Down Payment Assistance Programs
First-time and repeat buyers should be sure to check for local programs from various cities, counties, and financial institutions for additional assistance. Dallas, Austin, Houston, and Corpus Christi, for instance, have local and neighborhood down payment assistance programs.
6. Mortgage Credit Certificate
First-time borrowers, veterans, and people buying in targeted areas in Texas, including those in the My First Texas Home program, have in the past been eligible for a Texas mortgage credit certificate, which allows borrowers to take a portion of their mortgage interest paid as a federal tax credit of up to $2,000 a year. Although this program has been discontinued indefinitely, mortgage credit certificates may still be obtained in combination with Texas State Affordable Housing Corporation’s programs, as funds are available. So it’s worth asking about this if you are in conversations about a loan in Texas.
Recommended: First-Time Homebuyer Guide
How to Apply to Texas Programs for First-Time Homebuyers
You can find information about qualifications, applications, and requirements for loan programs at the websites for both the Texas Department of Housing and Community Affairs and the Texas State Affordable Housing Corporation , as well as via the specific program links provided above.
Neither organization lends directly, but you can find a list of their approved participating lenders on their websites. They also provide a list of recommended real estate professionals. It’s especially important for first-time buyers, who may be unfamiliar with the mortgage lending process, to compare interest rates, fees, and other costs among lenders to find the most affordable loan.
Federal Programs for First-Time Homebuyers
Several federal government programs are designed for people who have low credit scores or limited cash for a down payment. Although most of these programs are available to repeat homeowners, like state programs, they can be especially helpful to people who are buying a first home or who haven’t owned a home in several years.
The mortgages are generally for single-family homes, two- to four-unit properties that will be owner occupied, approved condos, townhomes, planned unit developments, and some manufactured homes.
Federal Housing Administration (FHA) Loans
The FHA, which is part of the US Department of Housing and Urban Development (HUD), insures mortgages for borrowers with lower credit scores. Here are some details on how this works:
• Homebuyers choose from a list of approved lenders that participate in the FHA loan program.
• Loans have competitive interest rates and require a down payment of 3.5% of the purchase price for borrowers, who typically need FICO® credit scores of 580 or higher. Those with low credit scores (specifically, between 500 and 579) must put at least 10% down.
• In addition to examining your credit score, lenders will look at your debt-to-income ratio (DTI, your monthly debt payments compared with your monthly gross income). FHA loans allow a DTI ratio of up to 57% in some cases, vs. a typical 45% to 50% maximum for a conventional loan.
• Gift money for the down payment is acceptable from certain donors, and it will be documented in a gift letter for the mortgage.
• FHA loans always require mortgage insurance: a 1.75% upfront fee and annual premiums for the life of the loan, unless you make a down payment of at least 10%, which allows the removal of mortgage insurance after 11 years.
◦ An example: For a $300,000 mortgage balance, upfront MIP would be around $5,250 and monthly MIP, at a rate of 0.55%, would be around $137.
You can learn more about these loans, including FHA loans for refinance and rehab of properties, by reading up on FHA requirements, loan limits, and rates.
Freddie Mac Home Possible Mortgages
Very low- and low-income borrowers may make a 3% down payment on a Home Possible® mortgage. These loans allow various sources for down payments, including co-borrowers, family gifts, employer assistance, secondary financing, and sweat equity.
The Home Possible mortgage is for buyers who have a credit score of at least 660.
Once you pay 20% of your loan, the Home Possible mortgage insurance will be canceled, which will lower your mortgage payments.
Fannie Mae HomeReady Mortgages
Fannie Mae HomeReady® Mortgages allow down payments as low as 3% for low-income borrowers. Applicants generally need a credit score of at least 620; pricing may be better for credit scores of 680 and above. Like the Freddie Mac program, HomeReady loans allow flexibility for down payment financing, such as gifts and grants.
For income limits, a comparison to an FHA loan, and other information, go to this Fannie Mae site .
Fannie Mae Standard 97 LTV Loan
The conventional 97 LTV loan is for first-time homebuyers of any income level who have a credit score of at least 620 and meet debt-to-income criteria. The 97% loan-to-value mortgage requires 3% down. Borrowers can get down payment and closing cost assistance from third-party sources.
Department of Veterans Affairs (VA) Loans
Eligible active-duty members of the military, reservists, veterans, and surviving spouses may apply for loans backed by the Department of Veterans Affairs. VA loans, which can be used to buy, build, or improve homes, have lower interest rates than most other mortgages and don’t require a down payment. Here are some important points to note:
• Most borrowers pay a one-time funding fee that can be rolled into the mortgage.
• VA loans do not require private mortgage insurance (PMI) for borrowers who make a down payment of less than 20%.
• These loans may have more flexible credit score requirements. In some cases, even those who have previously been in foreclosure or bankruptcy can qualify.
Borrowers applying for a VA loan will need a Certificate of Eligibility from the VA so make sure to review a guide to qualifying for a VA loan as a first step in the process.
💡 Quick Tip: Active duty service members who have served for at least 90 consecutive days are eligible for a VA loan. But so are many veterans, surviving spouses, and National Guard and Reserves members. It’s worth exploring with an online VA loan application because the low interest rates and other advantages of this loan can’t be beat.†
Native American Veteran Direct Loans (NADLs)
Eligible Native American veterans and their spouses may use these no-down-payment loans to buy, improve, or build a home on federal trust land. Unlike VA loans listed above, the Department of Veterans Affairs is the mortgage lender on NADLs. The VA doesn’t require mortgage insurance, but it does charge a funding fee. For more details, contact [email protected].
US Department of Agriculture (USDA) Loans
No down payment is required on these loans to moderate-income borrowers, which are guaranteed by the USDA in specified rural areas. Borrowers pay an upfront guarantee fee and an annual fee that serves as mortgage insurance.
The USDA also directly issues loans to low- and very low-income people. For loan basics and income and property eligibility, head to this USDA site .
HUD Good Neighbor Next Door Program
This program helps certain professionals (such as police officers, firefighters, emergency medical technicians, and teachers) qualify for mortgages in the areas they serve. Borrowers can receive 50% off a home in what HUD calls a “revitalization area.” They must live in the home for at least three years. Get information from the HUD program page.
Texas First-Time Homebuyer Stats for 2025
• Percentage of buyers who are first-time buyers: 24%
• Average home value in Texas: $307,629
• 3% down payment: $9,229
• 20% down payment: $61,256
• Typical down payment percentage of first-time homebuyers: 9%
• Median household income of homebuyers: $97,000
• Average credit score in Texas: 695
Financing Tips for First-Time Homebuyers
In addition to federal and state government-sponsored lending programs, there are other financial strategies that may help you become a homeowner. Some examples:
• Traditional IRA withdrawals. The IRS allows qualifying first-time homebuyers a one-time, penalty-free withdrawal of up to $10,000 from their IRA if the money is used to buy, build, or rebuild a home. In this context, the IRS considers anyone who has not owned a primary residence in the past two years a first-time homebuyer.
You will still owe income tax on the IRA withdrawal. If you’re married and your spouse has an IRA, they may also make a penalty-free withdrawal of $10,000 to purchase a home. The downside, of course, is that large withdrawals may jeopardize your retirement savings.
• Roth IRA withdrawals. Because Roth IRA contributions are made with after-tax money, the IRS allows tax- and penalty-free withdrawals of contributions for any reason as long as you’ve held the account for five years. You may also withdraw up to $10,000 in earnings from your Roth IRA without paying taxes or penalties if you are a qualifying first-time homebuyer and you have had the account for five years. With accounts held for less than five years, homebuyers will pay income tax on earnings withdrawn.
• 401(k) loans. If your employer allows you to borrow from the 401(k) plan that it sponsors, you might consider taking a loan against the 401(k) account to help finance your home purchase. With most plans, you can borrow up to 50% of your 401(k) balance, up to $50,000 in a 12-month period, without incurring taxes or penalties. You pay interest on the loan, which is paid into your 401(k) account. You usually have to pay back the loan within five years, but if you’re using the money to purchase a property, you may have up to 15 or even 25 years to repay.
• State and local down payment assistance programs. Usually offered at the regional or county level, these programs provide flexible second mortgages for first-time buyers looking into how to afford a down payment.
• The mortgage credit certificate program. First-time homeowners and those who buy in targeted areas can sometimes claim a portion of their mortgage interest as a tax credit, up to $2,000. Any additional interest paid can still be used as an itemized deduction. To qualify for the credit, you must be a first-time homebuyer, live in the home, and meet income and purchase price requirements, which vary by state.
If you refinance, the credit disappears, and if you decide to sell the house before nine years, you may have to pay some of the tax credit back. There are fees associated with applying for and receiving the mortgage credit certificate that vary by state. Often the savings from the lifetime of the credit can outweigh these fees.
• Your employer. Check with your employer; they may offer access to lower-cost lenders and real estate agents in your area, as well as home buying education courses.
• Your lender. Always ask your lender about any first-time homebuyer grant or down payment assistance programs available from government, nonprofit, and community organizations in your area.
The Takeaway
If you are a first-time homebuyer in the state of Texas, there may be programs that help out with home-owning opportunities. Income-qualified buyers may reap mortgages paired with down payment and other forms of assistance. Others can look for an affordable mortgage on their own among the vast array of home loans from federal programs and commercial lenders.
Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% - 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It's online, with access to one-on-one help.
FAQ
Should I take first-time homebuyer classes?
Yes, first-time homebuyer classes can be a smart move, providing you with good information on the jargon, technicalities, and steps involved in applying for a mortgage and purchasing a home. In fact, these helpful classes are required for some government-sponsored loan programs.
Do first-time homebuyers with bad credit qualify for homeownership assistance?
Often it is possible to get financial help to purchase a home even if you have poor credit. Many government and nonprofit homeowner assistance programs are available to people with lower credit scores. And often, interest rates and other loan pricing are competitive with those of loans available to borrowers with higher credit scores. That said, almost any lending program has some level of credit qualifications.
Is there a first-time homebuyer tax credit in Texas?
Yes. The Texas Mortgage Credit Program allows first-time homebuyers to take a portion of their mortgage interest as an annual federal tax credit, up to $2,000, depending on the size of their mortgage.
Is there a first-time veteran homebuyer assistance program in Texas?
Sometimes. The Texas State Affordable Housing Corporation provides credits as funds are available.
What credit score do I need for first-time homebuyer assistance in Texas?
For many of the programs available in Texas, buyers need a credit score of 620 or more to qualify. But there are other private, state, local, and federal loan programs that borrowers with lower scores or no credit history may be able to access.
What is the average age of first-time homebuyers in Texas?
While there aren’t many statistics available about the age of first-time Texan homebuyers, the national average is currently 38, according to the National Association of Realtors®.
Photo credit: iStock/ivanastar
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*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.
External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.
Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.
¹FHA loans are subject to unique terms and conditions established by FHA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. FHA loans require an Upfront Mortgage Insurance Premium (UFMIP), which may be financed or paid at closing, in addition to monthly Mortgage Insurance Premiums (MIP). Maximum loan amounts vary by county. The minimum FHA mortgage down payment is 3.5% for those who qualify financially for a primary purchase. SoFi is not affiliated with any government agency.
†Veterans, Service members, and members of the National Guard or Reserve may be eligible for a loan guaranteed by the U.S. Department of Veterans Affairs. VA loans are subject to unique terms and conditions established by VA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. VA loans typically require a one-time funding fee except as may be exempted by VA guidelines. The fee may be financed or paid at closing. The amount of the fee depends on the type of loan, the total amount of the loan, and, depending on loan type, prior use of VA eligibility and down payment amount. The VA funding fee is typically non-refundable. SoFi is not affiliated with any government agency.
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Qualifying for the reward requires using a real estate agent that participates in HomeStory’s broker to broker agreement to complete the real estate buy and/or sell transaction. You retain the right to negotiate buyer and or seller representation agreements. Upon successful close of the transaction, the Real Estate Agent pays a fee to HomeStory Real Estate Services. All Agents have been independently vetted by HomeStory to meet performance expectations required to participate in the program. If you are currently working with a REALTOR®, please disregard this notice. It is not our intention to solicit the offerings of other REALTORS®. A reward is not available where prohibited by state law, including Alaska, Iowa, Louisiana and Missouri. A reduced agent commission may be available for sellers in lieu of the reward in Mississippi, New Jersey, Oklahoma, and Oregon and should be discussed with the agent upon enrollment. No reward will be available for buyers in Mississippi, Oklahoma, and Oregon. A commission credit may be available for buyers in lieu of the reward in New Jersey and must be discussed with the agent upon enrollment and included in a Buyer Agency Agreement with Rebate Provision. Rewards in Kansas and Tennessee are required to be delivered by gift card.
HomeStory will issue the reward using the payment option you select and will be sent to the client enrolled in the program within 45 days of HomeStory Real Estate Services receipt of settlement statements and any other documentation reasonably required to calculate the applicable reward amount. Real estate agent fees and commissions still apply. Short sale transactions do not qualify for the reward. Depending on state regulations highlighted above, reward amount is based on sale price of the home purchased and/or sold and cannot exceed $9,500 per buy or sell transaction. Employer-sponsored relocations may preclude participation in the reward program offering. SoFi is not responsible for the reward.
SoFi Bank, N.A. (NMLS #696891) does not perform any activity that is or could be construed as unlicensed real estate activity, and SoFi is not licensed as a real estate broker. Agents of SoFi are not authorized to perform real estate activity.
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