Purchasing a home for the first time can be a daunting process, but the right first-time homebuyers program can make all the difference. Some states have designed programs to help reduce down payments, offer favorable loan terms, and provide guidance throughout the home-buying process. Here are six states that offer some of the best programs for first-time buyers looking to take that exciting first step into homeownership.
1. Arizona – Home Plus Program
Arizona’s Home Plus Program is ideal for first-time homebuyers who need help with down payment and closing costs. The program offers a grant of up to 5% of the loan amount, which doesn’t require repayment. This assistance can be applied toward down payments and closing costs, making it more affordable for buyers to secure their first home. The program is available to buyers with a FICO score of at least 640, and income limits vary by county. Arizona’s Home Plus Program also provides mortgage counseling, helping buyers make informed financial decisions.
2. California – CalHFA First Mortgage Programs
The California Housing Finance Agency (CalHFA) offers a range of first-time homebuyers programs with competitive interest rates and down payment assistance. CalHFA’s MyHome Assistance Program provides up to 3.5% of the purchase price for down payment or closing cost assistance, available as a deferred-payment loan. California’s ZIP Extra program can offer even more assistance, providing an additional $2,500 for eligible buyers. First-time buyers must meet income limits and be purchasing a primary residence to qualify. CalHFA also offers various mortgage options, including FHA, VA, and conventional loans, making it versatile for different buyer needs.
3. Texas – My First Texas Home
The My First Texas Home program is designed to assist first-time homebuyers with low-interest loans and down payment assistance. Eligible buyers can receive up to 5% of the loan amount for their down payment and closing costs. The program is available to buyers with a minimum FICO score of 620 and specific income and purchase price limits. Additionally, the My First Texas Home program offers a mortgage credit certificate, allowing homeowners to claim up to $2,000 in mortgage interest deductions each year. This program’s features make homeownership more accessible for Texans entering the market.
4. Florida – Florida First & Military Heroes Program
The Florida First program offers first-time homebuyers low-interest loans with down payment and closing cost assistance. It includes the Florida Assist Second Mortgage, which provides up to $10,000 at 0% interest as a deferred second mortgage for down payment support. Additionally, the Military Heroes Program offers similar benefits to active-duty military members and veterans. Both programs require buyers to meet income and purchase price limits, and they’re available through approved lenders statewide. Florida First is designed to ease financial barriers, providing flexible options for new buyers.
5. Colorado – CHFA FirstStep and FirstStep Plus
The Colorado Housing and Finance Authority (CHFA) offers multiple programs for first-time homebuyers, including the FirstStep and FirstStep Plus options. FirstStep is geared towards low-to-moderate-income buyers, providing FHA-insured loans with down payment and closing cost assistance. The FirstStep Plus option offers additional support with up to 4% of the loan amount as a grant or deferred-payment loan for down payments. Both programs require buyers to meet income and purchase price limits, as well as complete a homebuyer education course. CHFA’s support options make homeownership more achievable in the Colorado market.
6. Pennsylvania – PHFA Keystone Home Loan Program
The Pennsylvania Housing Finance Agency’s (PHFA) Keystone Home Loan Program provides affordable loan options and down payment assistance for first-time buyers. Eligible buyers can access FHA, VA, and USDA loans through the program, which offers competitive interest rates. PHFA also provides a separate Keystone Advantage Assistance Loan, a second loan that offers up to 4% of the home’s purchase price (up to $6,000) for down payment or closing costs. Buyers must meet income limits and other criteria, such as completing a homebuyer education course. PHFA’s programs are designed to make homeownership accessible, especially for those in lower-income brackets.
The Right Program Can Make All the Difference
These six states offer some of the best first time homebuyers programs, providing financial assistance, low-interest loans, and essential education for new buyers. By utilizing these resources, first-time homebuyers can overcome financial barriers and enjoy the process of owning their first home. Choosing the right program can significantly reduce costs, making homeownership a realistic goal. From Arizona’s generous down payment grants to Pennsylvania’s versatile loan options, each program caters to the unique needs of buyers. Explore these options, and take that exciting first step toward homeownership with confidence.
Vanessa Bermudez is a content writer with over eight years of experience crafting compelling content across a diverse range of niches. Throughout her career, she has tackled an array of subjects, from technology and finance to entertainment and lifestyle. In her spare time, she enjoys spending time with her husband and two kids. She’s also a proud fur mom to four gentle giant dogs.