Once you’ve decided you’re ready to buy a home, it can feel like you have information coming at you from every direction. Buying costs, mortgage options, and interest rates — it’s a lot to sift through. But, understanding your options and knowing when to ask for help can make a world of difference.
Whether you’re still in the thinking stage or ready to put an offer in, here’s what you need to know about first-time homebuyer programs.
What Are First-Time Homebuyer Programs
First-time homebuyer programs are designed to help eligible buyers get past some of the common hurdles that can make buying a home feel out of reach. This can include low and no down payment options, down payment assistance programs1, and local homebuyer programs.
And “first-time homebuyer” doesn’t always mean you’ve never owned a home. According to the U.S. Department of Housing and Urban Development (HUD), it typically includes someone who has never owned a home or hasn’t owned one in the past three years. That said, guidelines can vary, so it may help to talk with a loan officer or a HUD-certified counselor about your situation.
Types of First-Time Homebuyer Programs
The programs available to you can depend on where you’re buying, the type of loan you use, and your financial picture. Below are some of the most common options.
Down Payment and Closing Cost Assistance Programs
Down payment and closing cost assistance programs can help eligible buyers cover some of the upfront costs of buying a home. Depending on the program, that help may come as a grant, deferred-payment assistance, forgivable assistance, or repayable assistance.
Because each program works differently, it’s important to understand the details before you build it into your homebuying plan.
Government-Backed Loan Programs
Many low- and no-down payment loan options are government-backed. Because they’re insured or guaranteed by a government agency, they may offer more flexibility for qualified buyers.
Common options include:
FHA loans: Often used by buyers who may need more flexibility with down payment or credit requirements.
VA loans: May be available to eligible servicemembers, veterans, and surviving spouses and may offer no down payment options.2
USDA loans: May be available for eligible homes in qualifying rural or suburban areas and may also offer no down payment options.
Each program has its own guidelines, but these options are helpful to ask about early.
Who May Qualify
Every program has its own rules, but most look at a few key things: your income, credit profile, purchase price, home location, and whether you’ll live there as your primary residence. Some programs may also require a homebuyer education course or have limits based on household size, county, or property type.
If one program isn’t the right fit, another may be. A loan officer can help you understand what options may fit your situation.
What First-Time Buyers Should Know Before They Apply
First-time homebuyer programs can be helpful, but the details matter. Some have limited funding, some can be combined with other options, and some have to be used on their own.
You may also need extra documentation or need to complete certain steps before you shop for a home. Starting early gives you more time to understand what’s available and how it may fit into your homebuying plan.
How to Explore Your Options
You don’t need to know every loan program before you reach out. Start with the basics:
- What monthly payment feels comfortable?
- How much have you saved for upfront costs?
- Where are you hoping to buy?
- How soon would you like to move?
Buying your first home comes with questions, but you don’t have to answer them on your own.
First-time homebuyer programs may help eligible buyers with upfront costs, loan options, and local support. When you’re ready, connect with a PrimeLending loan officer to talk through your budget, timeline, and next steps.
Product info as of 5/28/26, subject to change.
1Certain restrictions apply, subject to down payment assistance program guidelines. Not available in all areas. Please contact your PrimeLending loan officer for more details.
2Down payment waiver is based on VA eligibility.
