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.

Who Is Considered a First-Time Homebuyer in Colorado?

First things first: The definition of first-time homebuyer is more expansive than it seems. For most programs offered in Colorado, and elsewhere, applicants are considered first-time homebuyers if they haven’t owned a home for the past three years. Let’s look at some of the programs designed to get first-time homebuyers a home mortgage loan or help with closing costs.

Other Colorado Homebuyer Programs by Location

If you’ve already chosen the Colorado city or county you hope to make your home, you may also want to research local buyer assistance programs.

If you can’t find assistance in your chosen location, check back occasionally for new offers. Some first-time homebuyer programs base their opportunities (and deadlines) on the funds they expect to become available. When their money runs out, they may press pause.

Aurora Assistance Program

Aurora’s Home Ownership Assistance Program was created to assist low- and moderate-income first-time homebuyers. It provides up to $10,000 in assistance to buyers in Aurora who need help covering down payment and closing costs. For information on benefits and requirements, you can email [email protected], or call 303-739-7900.

Boulder Programs

The city of Boulder is offering several assistance opportunities to low-, moderate-, and higher-middle-income first-time homebuyers. The programs include down payment assistance loans and grants, as well as a program that offers homes for sale at below-market prices to income-eligible owner-occupiers.

You can get eligibility requirements and how to apply by going to the program’s website . If you’re planning to purchase in Boulder County but the home is outside the city limits, ask your lender about other programs that may be available to you.

Douglas County Down Payment Assistance

The Douglas County Housing Partnership offers a down payment assistance program to first-time homebuyers, with preference given to borrowers who currently live and/or work in the county. For information on the benefits and requirements, check out the website or call the partnership at 303-660-7460.

Eagle County Down Payment Assistance

Eagle County’s program has a few variations, and your assistance may be based on the type of first mortgage you obtain, where you plan to live, your income, and other factors. Get more information at the program’s website . If you have questions, you can email [email protected] or call 970-328-8770.

MetroDPA Program

The MetroDPA down payment assistance program is for homebuyers with up to $195,600 of qualifying income who purchase a home in the Front Range, from Castle Rock to Wellington. For information on benefits and eligibility requirements, check out the program’s website

How to Apply to Colorado Programs for First-Time Homebuyers

The way to get more information about each program, and apply, is described above.

Often an approved lender is the go-to for assistance programs.

Recommended: Understanding Mortgage Basics

Federal Programs for First-Time Homebuyers

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

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

Federal Housing Administration (FHA) Loans

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

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

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

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

Freddie Mac Home Possible Mortgages

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

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

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

Fannie Mae HomeReady Mortgages

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

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

Fannie Mae Standard 97 LTV Loan

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

Department of Veterans Affairs (VA) Loans

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

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

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

Native American Veteran Direct Loans (NADLs)

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

US Department of Agriculture (USDA) Loans

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

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

HUD Good Neighbor Next Door Program

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

For more information, visit the HUD program page.

First-Time Homebuyer Stats for 2025

You’re probably curious about where you fit amid the mix of homebuyers out there. Here are some stats:

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

•   Median age of first-time homebuyers nationally: 38

•   Median home price in Colorado: $625,500

•   Median gross rent: $1,713

•   66.3% of Colorado housing units were owner-occupied

•   Average credit score in Colorado: 731

Additional Financing Tips for First-Time Homebuyers

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

•  Traditional IRA withdrawals. The IRS allows qualifying first-time homebuyers a one-time, penalty-free withdrawal of up to $10,000 from their IRA if the money is used to buy, build, or rebuild a home. The IRS considers anyone who has not owned a primary residence in the past two years a first-time homebuyer. You will still owe income tax on the IRA withdrawal. If you’re married and your spouse has an IRA, they may also make a penalty-free withdrawal of $10,000 to purchase a home. The downside, of course, is that large withdrawals may 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. It may be possible to borrow from the 401(k) plan that your employer sponsors or take 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 year 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 10 years or more 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

A robust assortment of mortgage and down payment help in Colorado allows qualifying first-time homebuyers to afford a home of their own. Others may have to blaze their own trail to find a mortgage that’s a good fit. Keep in mind that borrowers who go with a conventional loan don’t necessarily have to come up with a 20% down payment. (And most buyers don’t.)

By Susan Guillory

(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.

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

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

Who Is Considered a First-Time Homebuyer in Virginia?

The definition of a first-time buyer might surprise some people. Sure, it’s someone who has never bought a home, but for most programs offered in Virginia and elsewhere, applicants are considered first-time homebuyers if they haven’t owned a home for the past three years. Guidelines from the U.S. Department of Housing and Urban Development (HUD) also count these folks as first-timers, so lenders often follow their lead:.

•   Someone who has not owned a home in the last three years

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

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

Chances are if you’re a homebuyer in Virginia, and especially if you’re a first-time buyer, you’re going to need a home mortgage loan.

9 Virginia Programs for First-Time Homebuyers

Most first-time homebuyer programs in Virginia are designed to help low- to moderate-income buyers who need help finding an affordable mortgage or coming up with a down payment or closing costs. Which means program participants typically must meet eligibility requirements regarding their income, credit scores, and debt-to-income ratio (DTI).

There also may be limits on how much the home to be purchased can cost, and the home usually must be owner occupied. Also, at least one of the buyers may have to complete a homebuyer education course as part of the application process.

The Virginia Housing Development Authority has a long list of programs for first-time homebuyers, but there are other statewide programs you also may want to consider. Read on for a snapshot of what’s available.

1. Virginia Housing Conventional Home Loan

Virginia Housing’s Conventional Home Loan program offers first-time and repeat homebuyers the opportunity to qualify for a 30-year fixed-rate loan with a low down payment combined with the lowest available conventional mortgage insurance payments. It can be paired with down payment assistance.

•  3% down payment (as low as 1% down with a Virginia Housing Down Payment Assistance Grant or 0% with Virginia Housing Plus Second Mortgage)

•  Flexible down payment sources are allowed, including gifts, down payment assistance loan or grant, or other eligible second mortgages

•  640 minimum credit score

•  Maximum 50% DTI ratio

•  Maximum 3% seller concessions (6% if down payment is 10% or more)

•  Must meet Virginia Housing income limits

•  Must complete a homebuyer education course

•  Must be a single-family, one-unit home or agency-approved condo (no manufactured homes)

•  No maximum sales price limit (unless combined with other Virginia Housing programs). An approved lender can help you get started. For general questions, call Virginia Housing at 877-843-2123.

2. Virginia Housing Conventional No Mortgage Insurance

This 30-year fixed-rate loan program is similar to the conventional loan program above, except borrowers aren’t required to pay for mortgage insurance. It can be paired with down payment assistance.

•  3% down payment (as low as 1% down with a Virginia Housing Down Payment Assistance Grant or 0% with Virginia Housing Plus Second Mortgage)

•  Flexible down payment sources are allowed, including gifts, down payment assistance loan or grant, or other eligible second mortgages

•  660 minimum credit score

•  Maximum 50% DTI ratio

•  Maximum 3% seller concessions (6% if down payment is 10% or more)

•  Must meet Virginia Housing income limits

•  Must complete a homebuyer education course

•  Must be a single-family, one-unit home or agency-approved condo (no manufactured homes)

•  No maximum sales price limit (unless combined with other Virginia Housing programs). An approved lender can help you get started. For general questions, call Virginia Housing at 877-843-2123.

3. Virginia Housing Plus Second Mortgage

The Virginia Housing Plus Second Mortgage pairs a Virginia Housing conventional loan, Virginia Housing conventional no mortgage insurance loan, or FHA loan with a second mortgage that borrowers can use to make their down payment.

The second mortgage is 3% to 5% of the home’s purchase price (amount is based on credit score and mortgage type).

Benefits and qualifications include:

•  30-year fixed-rate loan

•  Qualified buyers with 680 or higher credit scores also can finance part of their closing costs using the second mortgage

•  Must be a first-time homebuyer unless purchasing in targeted opportunity area

•  Minimum 620-680 credit score (based on loan program)

•  Borrowers must have 1% of purchase price available to them at closing

•  Must meet Virginia Housing income limits

•  Must complete a homebuyer education course. Contact an approved lender to apply. For general questions, call Virginia Housing at 877-843-2123.

4. Virginia Housing Down Payment Assistance Grant

Virginia Housing offers a Down Payment Assistance Grant that provides qualifying homebuyers with up to 2.5% of the home’s purchase price for their down payment. The grant must be used with a Virginia Housing conventional first mortgage, Virginia Housing conventional no mortgage insurance loan, or an FHA loan.

Requirements include:

•  Available to first-time homebuyers and repeat buyers

•  Minimum credit score of 620 to 660 (based on loan program)

•  Qualified buyers with credit scores of 680 or higher can also finance part of their closing costs into the second mortgage.

•  Must meet Virginia Housing income and sales price limits

•  Must complete a homebuyer education course

•  Virginia Housing mortgage must be locked in before receiving grant. An approved lender can help you get started. For general questions, call Virginia Housing at 877-843-2123.

5. Virginia Housing Closing Cost Assistance Grant

Virginia Housing’s Closing Cost Assistance Grant can help borrowers who are applying for a USDA or VA loan cover their out-of-pocket expenses. The maximum grant is 2% of the home’s purchase price.

Benefits and requirements include:

•  Nonrepayable grant can be applied to closing costs, USDA guarantee fee, or VA funding fee.

•  Must be a first-time homebuyer

•  Minimum credit score of 620

•  Must meet Virginia Housing income and sales price limits

•  Must complete a homebuyer education course. Contact an approved lender to get started.

6. Virginia Department of Housing and Community Development Down Payment Assistance

The Virginia Department of Housing and Community Development (DHCD) has a down payment assistance program for first-time homebuyers who are at or below 80% of the area median income. Qualifying homebuyers may receive a grant worth up to 15% of their home’s purchase price, plus up to $2,500 for closing costs.

•  Minimum credit score of 620

•  Maximum DTI 43%

•  Must contribute to the home purchase from personal funds (contribution amount based on household income)

•  Must meet U.S. Department of Housing and Urban Development income limits for Virginia

•  Sales price cannot exceed HUD limits (may vary by location)

•  Must receive HUD-certified homeownership counseling and complete HUD-certified homebuyer education course

To apply, you must work through a participating local provider .

7. HOME of Virginia Steps to Homeownership Program

Housing Opportunities Made Equal (HOME) of Virginia is a federally funded nonprofit organization that offers assistance to first-time buyers who can get a home loan on their own but may need down payment help.

Participants must attend a homebuyer education course and meet with a program counselor. Income limits are based on household size. For more information about this program, you can check out the HOME website .

8. Virginia Tax First Time Home Buyer Savings Account Subtraction

Virginia’s Department of Taxation (known as Virginia Tax) offers this opportunity for first-time buyers who are saving for a home. It involves designating an account at a Virginia financial institution as a First Time Home Buyer Savings Account (including savings or other bank accounts, mutual funds, CDs, brokerage, and money market accounts).

There are limits on how much you can save in the account (principal and interest), and the money in the account can be used only to pay the down payment or closing costs for a single-family home. But the advantage is that any income produced by the account is considered tax-free in the state. You can then subtract this income from your federal adjusted gross income to calculate your Virginia adjusted gross income for your taxes.

For more information, check out the Virginia Tax website .

Other Virginia Homebuyer Programs by Location

If you’ve already chosen the part of Virginia you hope to make your home, you also may want to research local buyer assistance programs.

If you can’t find assistance in your chosen location, check back occasionally for new offers. Some first-time homebuyer programs base their opportunities (and deadlines) on the funds they expect to become available. When their money runs out, they may press pause.

Some local programs:

Alexandria Flexible Homeownership Assistance Program

This loan program through the city of Alexandria provides down payment/closing cost assistance to first-time homebuyers who purchase a home made available through the Affordable Set-Aside Homebuyer Program, the Neighborhood Stabilization Program, or the Resale Restricted Homeownership Program.

Assistance is provided through a 0% interest, deferred-payment second mortgage. The assistance amount is based on household size, income, and financial need. For benefits and requirements, check out the website or call 703-746-3087.

Hopeful buyers also can sign up to receive email alerts about available affordable homes for sale and homebuyer training sessions, or call 703-746-4990.

Norfolk HomeNet Homeownership Center Programs

The HomeNet Homeownership Center offers several programs to help residents find, save up for, and buy an affordable home in Norfolk. The center’s opportunities include educational sessions, down payment assistance for qualifying homebuyers, and a matching savings program. Go to the center’s website or call 757-623-1111.

Recommended: Understanding Mortgage Basics

How to Apply to Virginia Programs for First-Time Homebuyers

Reaching out to an approved lender is often the key to learning what programs you might qualify for and how to follow all the steps from applying to closing.

Follow the links and contacts mentioned.

Federal Programs for First-Time Homebuyers

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

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

Federal Housing Administration (FHA) Loans

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

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

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

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

Freddie Mac Home Possible Mortgages

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

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

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

Fannie Mae HomeReady Mortgages

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

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

Fannie Mae Standard 97 LTV Loan

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

Department of Veterans Affairs (VA) Loans

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

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

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

Native American Veteran Direct Loans (NADLs)

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

US Department of Agriculture (USDA) Loans

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

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

HUD Good Neighbor Next Door Program

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

First-Time Homebuyer Stats for 2025

Ever wonder where you fit amid the buyers shopping for their first home, or their first in years? Here are some stats from a recent National Association of Realtors^® Profile of Home Buyers and Sellers:

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

•  Median household income of first-time buyers nationwide: $97,00

•  Median down payment of first-time homebuyers: 9%

•  Median age of first-time homebuyers: 38

•   Average credit score in Virginia: 723

Additional Financing Tips for First-Time Homebuyers

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

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

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

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

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

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

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

The Takeaway

If you can qualify for one of the first-time homebuyer programs in Virginia, you may be able to reduce the costs of a purchase and make your dream of owning your own home a reality.