12 First Time Home Buyer Programs You Must Know In 2019

Are you looking for some Programs or grants? Well, there are many First-time home buyer programs you must be knowing about. Find out the 12 Best Programs in the United States.

For many first-time home buyers, turning out with a payment is troublesome. Maybe you’re saving up to start out a family or you’ve got student loans uptake into your financial gain.

First Time Home Buyer Programs

If you don’t have that payment nonetheless, you’re not alone. According to the Gregorian calendar month 2016 Realtors Confidence Index Survey Report, eighty one of first-time home buyers get with but 2 hundredth down.

Deciding to purchase a home for the first time can be exciting and stressful all at the same time. You have likely been renting where you live and saving up your money for a while. You probably have also been working hard to build up your credit score to qualify for a good mortgage, as well as put down a hefty deposit.

Even so, sometimes as a first-time home buyer, you might need just a little bit more support. In fact, many millennials say that they want to own a home. They just feel like, financially, it just isn’t in the cards for them.

This is where first-time home buyer assistance programs come in. These loan programs are specifically designed to help first-time home buyers succeed in purchasing a great home for them.

First-time home buyer programs facilitate folks get low-interest mortgages once they can’t secure them elsewhere. Because government organizations back several of those loans, qualification requirements are a lot less strict than they are for conventional loans.

Advantages given to the first-time home buyers

There are many programs that help first-time home buyers. Down payment aid programs help for closing cost or down payment of the house. To apply for one, a person must have good credit and meet income requirements. These programs offer low down payments or subsidized interest.

It helps homeowners even if they are low-to moderate-income individuals. Helps Americans secure mortgages even when their credit scores aren’t up to the mark.

Who is not eligible to be a first-time home buyer?

Not everyone qualifies for first-time home buyer tax credit. There are exceptions when someone who sells their property before the end of the taxable year or illegal aliens is not qualified. In case the person obtains the home as a gift from a relative, is disqualified.

Top 12 First time home buyer programs

Let me share some of the best First time Home Buyer Programs that you can benefit from.

1) Federal Housing Administration Loans

They work with local lenders so that people who do not get qualified elsewhere are offered mortgages. The government makes sure that lenders are comfortable offering mortgages to the one are who do not have the strongest credit history.

They allow down payments as low as 3.5% for credit scores of 580+. The lower the credit score, the higher the interest borrowers receive. Even if the credit score is less than 580, it does not mean that they are not eligible for FHA loan. In that case, the minimum down payment must be 10%.

Visit HUD’s official website to check the various grants they are offering.

2) The United States Department of Agriculture Loan

The USDA issues low interest mortgages for Americans whose income is low and wishes to live in rural areas. They are mostly low-to-no-down-payments because the local lenders ensure a certain amount. They offer two types of loans for the first-time home buyers.

One cannot make more than 115% median income for the designated area where they want to live. A credit score around 680 helps secure guaranteed loan with a low interest rate and zero down payments. If the credit score is below 680, then a later down payment of 10% has to be made.


3) Veterans Affairs Loans

They issue loans for first-time home buyers and qualifying military members. It carries lower interest rates than conventional counterparts. The lenders offer loans with little to no money down. To get qualified, one must meet the requirements set by the VA and some lenders.

A person is eligible if it has been a veteran for 90 days of continuous service or active duty service member for 90 days or National Guard member for six years or un-remarried surviving spouse of a veteran who died from service related incident.

4) Native American Direct Loans

To get qualified, one must be a Native American or belong to a tribe or be married to a qualified individual or apply for VA loan Certificate of Eligibility. If a person is a veteran or spouse is Native American, the person can be eligible.

With the help of NADL program, one may get a loan to buy, build or improve home on Federal Trust Land. A credit score of 640+ is required and borrowers with a steady income. NADL offers benefits like no down payment in most of the cases, limited closing costs, a low interest.

5) Teacher Next Door Program

In this program, the neighbors help the people stay in their local communities by paying for them. It designed to help schoolteachers purchase homes at a reasonable rate. It was designed by the Department of Housing and Urban Development; it is also a government agency that works to develop underprivileged areas.

It helps the teacher purchase the property at half the rate. It is applicable to any teacher who teaches between kindergartens to 12th grade. The teacher after purchasing the property will have to stay in it for at least 3 years.

Visit Teacher Next Door’s official site to know more.

first time home buyer government programs

6) HUD Dollar Homes

This program has single-family homes. Through foreclosure, FHA acquire these homes. When FHA cannot sell a home in six months, it falls under this property. These properties are sold at $1 to local governments and nonprofits helping low-income families find affordable housing.

HUD is not a lender for homes but anyone with cash or an approved loan can qualify. The people purchasing on HUD have a down payment of 25% for single-families. Investors purchasing it have a minimum down payment of 15%.

7) US Department of Agriculture Loan

This loan is for low-to moderate-income home buyers in rural areas of the country. To qualify for USDA loan, one should buy a house in USDA location and make an average income. It is perfect for first-time home buyers because there is no down payment required. They are less expensive than FHA loans as mortgage insurance is half percent cheaper.

8) 203k Rehab Loan

The 203K loan allows an individual to borrow money, use only one loan and for home improvement and home purchase. They can also be used for only home improvements with other options being available too. FHA guarantees these loans; lenders take less risk when offering loans.

While some properties are perfect with good location but might need improvements. Without the repairs, lenders might not want to fund on the property with problems. With the help of 203K, it turns that property to home.

9) HomeReady Homepath Mortgage

The Fannie Mae homepath loan is a defunct mortgage program, which reduces the cost of purchase on foreclosed property. These do not require a private mortgage. With the help of the required buyer education course, one can receive 3% towards closing costs.

A low down payment of just 3% is required which is lesser than FHA loans. It’s especially for first-time home buyers who want to occupy property as a primary residence.

10) Conventional 97% LTV 3% Down Program

The conventional 97 is low down payment mortgage government program could be perfect for the buyer. It allows first time and repeats buyers with a minimum down payment of 3%. The property must be a primary residence with a loan, not more than $484,350.

11) Energy-Efficient Mortgage

Energy Effecient Mortage is a program that credits a home’s energy efficiency in the mortgage. It gives borrowers the opportunity to finance cost effective and energy saving measures as part of a single mortgage. A home energy rater conducts energy rating before financing is approved. It varies for the lender that the house is energy efficient.

12) National Homebuyers Fund

The NHF is one of the few multi-state first-time home buyer grants. After finding a participating lender, the down payment assistance program provides up to 5% of the loan amount. It is a non-repayable grant and does not need to be paid back.

Final Words

Before buying a house it is important to do proper research and learn about the process. By learning, tackling every situation properly and confidently will have a positive impact while searching for homes. The first-time home buyers program is a government initiative to help people buy homes when they cannot buy one.

I hope our list of Top Programs for First Time Home Buyers will help you get good grants and benefits.

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