April 21st, 2021 11:48 AM by Jackie A. Graves
A first-time homebuyer loan allows a buyer with a low or mid-range income and limited savings to finance a home purchase. Typically, these types of loans come with a below-market rate, and sometimes lower mortgage insurance premiums. You can often pair them with down payment and closing cost assistance, so they’re ideal if you don’t have the means to put a substantial amount of money down on a home.
Many first-time homebuyer loan programs only require that you haven’t owned a home in the last three years, not that you’re a true first-time buyer. Often, all it takes to qualify is an acceptable credit score and income level (determined by program), the completion of a homebuyer class and a contribution of some of your own funds to the purchase.
Many mortgage lenders offer first-time homebuyer loans, sometimes through partnerships with a state housing finance agency, or HFA. Here are these first-time homebuyer loan programs by state.
First-time homebuyer loan programs by state
Midwest
State
HFA
Mortgage lenders
Illinois first-time homebuyer programs
Illinois Housing Development Authority
Illinois mortgage lenders
Indiana first-time homebuyer programs
Indiana Housing & Community Development Authority
Indiana mortgage lenders
Iowa first-time homebuyer programs
Iowa Finance Authority
Iowa mortgage lenders
Kansas first-time homebuyer programs
Kansas Housing Resources Corporation
Kansas mortgage lenders
Michigan first-time homebuyer programs
Michigan State Housing Development Authority
Michigan mortgage lenders
Minnesota first-time homebuyer programs
Minnesota Housing Finance Agency
Minnesota mortgage lenders
Missouri first-time homebuyer programs
Missouri Housing Development Commission
Missouri mortgage lenders
Nebraska first-time homebuyer programs
Nebraska Investment Finance Authority
Nebraska mortgage lenders
North Dakota first-time homebuyer programs
North Dakota Housing Finance Agency
North Dakota mortgage lenders
Ohio first-time homebuyer programs
Ohio Housing Finance Agency
Ohio mortgage lenders
South Dakota first-time homebuyer programs
South Dakota Housing Development Authority
South Dakota mortgage lenders
Wisconsin first-time homebuyer programs
Wisconsin Housing and Economic Development Authority
Wisconsin mortgage lenders
Northeast
Connecticut first-time homebuyer programs
Connecticut Housing Finance Authority
Connecticut mortgage lenders
Maine first-time homebuyer programs
Maine State Housing Authority
Maine mortgage lenders
Massachusetts first-time homebuyer programs
Massachusetts Department of Housing and Community Development
Massachusetts mortgage lenders
New Hampshire first-time homebuyer programs
New Hampshire Housing Finance Authority
New Hampshire mortgage lenders
New Jersey first-time homebuyer programs
New Jersey Housing and Mortgage Finance Agency
New Jersey mortgage lenders
New York first-time homebuyer programs
State of New York Mortgage Agency
New York mortgage lenders
Pennsylvania first-time homebuyer programs
Pennsylvania Housing Finance Agency
Pennsylvania mortgage lenders
Rhode Island first-time homebuyer programs
Rhode Island Housing
Rhode Island mortgage lenders
Vermont first-time homebuyer programs
Vermont Housing Finance Agency
Vermont mortgage lenders
South
Alabama first-time homebuyer programs
Alabama Housing Finance Authority
Alabama mortgage lenders
Arkansas first-time homebuyer programs
Arkansas Development Finance Authority
Arkansas mortgage lenders
Delaware first-time homebuyer programs
Delaware State Housing Authority
Delaware mortgage lenders
Florida first-time homebuyer programs
Florida Housing Finance Corporation
Florida mortgage lenders
Georgia first-time homebuyer programs
Georgia Department of Community Affairs
Georgia mortgage lenders
Kentucky first-time homebuyer programs
Kentucky Housing Corporation
Kentucky mortgage lenders
Louisiana first-time homebuyer programs
Louisiana Housing Corporation
Louisiana mortgage lenders
Maryland first-time homebuyer programs
Maryland Department of Housing and Community Development
Maryland mortgage lenders
Mississippi first-time homebuyer programs
Mississippi Home Corporation
Mississippi mortgage lenders
North Carolina first-time homebuyer programs
North Carolina Housing Finance Agency
North Carolina mortgage lenders
Oklahoma first-time homebuyer programs
Oklahoma Housing Finance Agency
Oklahoma mortgage lenders
South Carolina first-time homebuyer programs
South Carolina State Housing Finance & Development Authority
South Carolina mortgage lenders
Tennessee first-time homebuyer programs
Tennessee Housing Development Agency
Tennessee mortgage lenders
Texas first-time homebuyer programs
Texas Department of Housing and Community Affairs
Texas mortgage lenders
Virginia first-time homebuyer programs
Virginia Housing
Virginia mortgage lenders
Washington, D.C. first-time homebuyer programs
District of Columbia Housing Finance Agency
Washington, D.C. mortgage lenders
West Virginia first-time homebuyer programs
West Virginia Housing Development Fund
West Virginia mortgage lenders
West
Alaska first-time homebuyer programs
Alaska Housing Finance Corporation
Alaska mortgage lenders
Arizona first-time homebuyer programs
Arizona Industrial Development Authority
Arizona mortgage lenders
California first-time homebuyer programs
California Housing Finance Agency
California mortgage lenders
Colorado first-time homebuyer programs
Colorado Housing and Finance Authority
Colorado mortgage lenders
Hawaii first-time homebuyer programs
Hawaii Housing Finance & Development Corporation
Hawaii mortgage lenders
Idaho first-time homebuyer programs
Idaho Housing and Finance Association
Idaho mortgage lenders
Montana first-time homebuyer programs
Montana Housing
Montana mortgage lenders
Nevada first-time homebuyer programs
Nevada Housing Division
Nevada mortgage lenders
New Mexico first-time homebuyer programs
New Mexico Mortgage Finance Authority
New Mexico mortgage lenders
Oregon first-time homebuyer programs
Oregon Housing and Community Services
Oregon mortgage lenders
Utah first-time homebuyer programs
Utah Housing Corporation
Utah mortgage lenders
Washington first-time homebuyer programs
Washington State Housing Finance Commission
Washington mortgage lenders
Wyoming first-time homebuyer programs
Wyoming Community Development Authority
Wyoming mortgage lenders
How can a first-time homebuyer loan help me?
When you buy your first home, you’ll need to make a down payment on the purchase and pay for closing costs on your mortgage. These are costly expenses, and if you don’t have much in the way of savings, they can be difficult to accumulate.
That’s where a first-time homebuyer loan comes in. First-time homebuyer loan programs typically come with a 30-year fixed-rate mortgage — the loan you’ll use to pay for the home — and down payment assistance, either a grant or a second mortgage for a portion of the home’s purchase price, usually up to a certain amount. Grants don’t have to be repaid, and some second mortgages can be forgiven after a period of time, while others have to be paid back when you pay off your first mortgage. It all depends on the program.
Down payment help isn’t the only upside. First-time homebuyer loans also come with competitive interest rates, so even if you don’t need down payment assistance, you can still obtain a more affordable mortgage through one of these programs.
There’s at least one other benefit, too: To be eligible for a first-time homebuyer loan, many programs require you to take a homebuyer education class. These courses go over everything you need to know to prepare you for homeownership, so they’re especially valuable if it’s your first time buying. Some are free, and there are usually both in-person and online options.
How can I find a mortgage lender?
Many mortgage lenders offer first-time homebuyer loan programs or work with organizations that do. To find a lender, you can:
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