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First-time buyer

First-Time Homebuyer Programs by State (2026 Complete List)

State-by-state directory of down payment assistance, closing cost grants, and below-market first-time buyer mortgage programs.

Editorial note
MLO Finder explains mortgage concepts in plain English. This guide is educational, not a loan quote or underwriting decision.

First-Time Homebuyer Programs by State (2026 Complete List)

Every state runs a Housing Finance Agency (HFA) that offers below-market mortgage products and down payment assistance to first-time buyers. The catch: most of them are underused because borrowers don't know they exist or assume they don't qualify.

TL;DR

  • Every state has a Housing Finance Agency (HFA) with first-time buyer programs.
  • "First-time buyer" usually means anyone who hasn't owned a primary residence in the past 3 years, not literal first-time.
  • Most programs layer down payment assistance (DPA) on top of FHA, VA, USDA, or HFA-preferred conventional loans.
  • Income limits apply — typically 80%–140% of area median income (AMI), depending on program.
  • Apply through an HFA-approved lender, not directly to the HFA.

What an HFA actually does

A Housing Finance Agency (HFA) is a state-chartered agency that issues tax-exempt bonds to fund mortgages for low- and moderate-income borrowers. Because the funding cost is below market, HFAs can offer:

  • Below-market interest rates on first mortgages
  • Down payment assistance (grants, forgivable loans, or repayable seconds)
  • Closing cost assistance
  • Mortgage credit certificates (MCCs) — a federal income tax credit on a portion of mortgage interest

You don't apply to the HFA directly. You apply through an HFA-approved lender — a loan officer trained in that state's specific programs. The lender uses the HFA product the same way they'd use a standard FHA or conventional loan, plus the DPA layer.

To find an HFA-approved lender, you can search through NMLS Consumer Access for licensed officers in your state and ask each whether they're approved with your state's HFA.

Common features across HFA programs

| Feature | Typical range | | --- | --- | | Income limit | 80%–140% of area median income (AMI) | | Purchase price limit | $250,000–$700,000+ depending on county | | First-time buyer definition | No primary residence ownership in last 3 years (in most states) | | Required homebuyer education | 4–8 hours, often online ($75–$100) | | Minimum credit score | 620–660 typical | | Down payment assistance form | Grant, forgivable loan (after 5–10 years), or repayable second mortgage | | DPA amount | 3%–10% of purchase price | | First mortgage loan types supported | FHA, VA, USDA, HFA-preferred conventional |

State-by-state quick reference

The programs below are the flagship offerings. Many states have additional programs for teachers, first responders, veterans, rural buyers, or specific city/county initiatives. Always check the HFA website for the full menu.

Alabama

  • AHFA (Alabama Housing Finance Authority) Step Up Program: 30-year fixed with DPA up to 4% of purchase price as a 10-year second mortgage.
  • Income and purchase price limits vary by county. Find an approved lender.

Alaska

  • AHFC (Alaska Housing Finance Corporation) First-Time Homebuyer Program: Below-market interest rates and reduced fees.
  • Tax-exempt funding requires repayment of "recapture tax" if home sold within 9 years with significant gain.

Arizona

  • Home Plus Program: DPA up to 5% of loan amount, forgivable after 3 years.
  • Pathway to Purchase: Up to 10% DPA, targeted to specific census tracts.

Arkansas

  • ADFA Move-Up Loan: Below-market rate plus DPA up to $15,000 as a forgivable second.
  • ADFA also offers a "Start Smart" MCC tax credit.

California

  • CalHFA MyHome Assistance: Up to 3.5% of purchase price as a deferred second mortgage.
  • ZIP: Zero Interest Program for closing costs (3% of first loan, deferred).
  • Dream For All Shared Appreciation Loan: 20% DPA in exchange for 20% of future appreciation (limited funding, periodic application windows).

Colorado

  • CHFA SmartStep & FirstStep: 30-year fixed with DPA grant or second mortgage option.
  • DPA up to 3% (grant) or 4% (silent second), no monthly payment.

Connecticut

  • CHFA Time To Own Loan: Up to $50,000 in DPA forgivable over 10 years.
  • CHFA Downpayment Assistance Program: Second mortgage up to $20,000.

Delaware

  • DSHA Welcome Home Program: 30-year fixed plus DPA grant.
  • DSHA Preferred Plus: DPA up to $10,000 as a second mortgage.

Florida

  • Florida Hometown Heroes: Targeted at frontline workers — teachers, nurses, first responders, military. DPA up to 5% of mortgage (max $35,000).
  • Florida First & FL Assist: Up to $10,000 DPA as a 0% interest second.

Georgia

  • Georgia Dream Homeownership Program: $10,000 DPA standard, $12,500 for protected professions (educators, healthcare, public safety, military).
  • Below-market 30-year fixed first mortgage.

Hawaii

  • HHFDC HiloanProgram: Below-market rates and DPA for moderate-income buyers.
  • Honolulu-specific programs available.

Idaho

  • Idaho Housing First Loan: 30-year fixed with DPA up to 7% as a second mortgage or 3.5% as a grant.

Illinois

  • IHDA Access Programs: Access Forgivable (4% forgivable), Access Deferred (5% deferred 0%), Access Repayable (10% repayable at 0%).
  • Smart Buy: Targeted at borrowers with student loan debt — pays off up to $40,000 of student loans at closing.

Indiana

  • IHCDA Next Home Program: DPA up to 3.5% of purchase, forgivable in 9 years.
  • First Place Program: 6% DPA as a second mortgage, for first-time buyers in targeted areas.

Iowa

  • IFA FirstHome Plus: $2,500–$5,000 DPA grant for first-time buyers in 88 counties.
  • Homes for Iowans: Higher income limits, statewide eligibility.

Kansas

  • First Time Homebuyer Program: DPA up to 20% of purchase price in eligible areas.
  • Administered through KHRC.

Kentucky

  • KHC Regular DAP & Affordable DAP: $7,500 DPA as a repayable second mortgage at 0%.

Louisiana

  • LHC Mortgage Revenue Bond Program: Below-market rates and DPA up to 4%.
  • Soft Second Program: Up to $55,000 forgivable in 10 years for income-eligible buyers.

Maine

  • MaineHousing First Home Loan: Below-market 30-year fixed plus $5,000 DPA grant.
  • Salute ME: Additional $5,000 for veterans and active duty.

Maryland

  • Maryland Mortgage Program: Below-market rates and DPA up to $6,000 standard ($10,000+ for partner-matched programs).
  • SmartBuy 3.0: Pays off up to $50,000 in student loans at closing for buyers in target areas.

Massachusetts

  • MassHousing Mortgage: 30-year fixed with DPA up to $25,000.
  • Down Payment Assistance (DPA): 10% of purchase price up to $50,000 in Boston, Springfield, Worcester and other gateway cities.

Michigan

  • MSHDA MI Home Loan: $10,000 DPA in most areas, forgivable.
  • MI 10K DPA Loan: Stackable second.

Minnesota

  • Minnesota Housing Start Up & Step Up Loans: Below-market rates plus Monthly Payment Loan or Deferred Payment Loan for DPA.

Mississippi

  • MS Home Corporation Smart6: 30-year fixed with 3.5% DPA.

Missouri

  • MHDC Next Step Programs: Below-market rates and 4% DPA.
  • First Place: For first-time buyers and qualified veterans.

Montana

  • Montana Housing Regular Bond Program: Below-market rates plus DPA up to $15,000 (Bond Advantage DPA).
  • MBOH Plus: Higher DPA limits with second mortgage.

Nebraska

  • NIFA Homebuyer Programs: Below-market rates plus 5% DPA as forgivable second.
  • Military and HBA Plus options available.

Nevada

  • Home Is Possible: Up to 5% of loan amount in DPA, no first-time buyer requirement.
  • Home Is Possible for Heroes & Teachers: Discounted programs.

New Hampshire

  • NH Housing Home Flex Plus: DPA up to 4% of loan amount, no first-time buyer requirement.
  • Home First: For first-time buyers with income limits.

New Jersey

  • NJHMFA First-Time Homebuyer Mortgage Program: Below-market 30-year fixed plus $15,000 DPA forgivable in 5 years.
  • Police & Firefighters Retirement System Program: Up to $15,000 DPA for eligible PFRS members.

New Mexico

  • MFA FirstHome: 30-year fixed plus $8,000 DPA second mortgage.
  • HomeForward for non-first-time buyers.

New York

  • SONYMA Achieving the Dream: Below-market 30-year fixed for low-income buyers.
  • Down Payment Assistance Loan (DPAL): Up to $15,000 or 3% of purchase price as a 0% forgivable second.

North Carolina

  • NCHFA NC Home Advantage Mortgage: 30-year fixed with DPA up to 3%.
  • NC 1st Home Advantage: $15,000 DPA for first-time buyers and military veterans.

North Dakota

  • NDHFA FirstHome: Below-market rates, no DPA built in.
  • DCA Down Payment & Closing Cost Assistance: Up to $7,500 for low-income buyers.

Ohio

  • OHFA Your Choice DPA: 2.5% or 5% DPA as second mortgage.
  • Welcome Home Loan: For first-time and qualified non-first-time buyers.

Oklahoma

  • OHFA Homebuyer Down Payment Assistance: 3.5% DPA grant (no repayment).
  • OHFA Dream: 30-year fixed with stackable DPA.

Oregon

  • OHCS Oregon Bond Residential Loan Program: Below-market rates.
  • RateAdvantage and CashAdvantage options (latter includes 3% DPA).

Pennsylvania

  • PHFA Keystone Home Loan & HFA Preferred: 30-year fixed with DPA via Keystone Advantage Assistance Loan (up to $6,000).
  • K-Fit: 5% DPA forgivable second.

Rhode Island

  • RIHousing FirstHomes Tax Credit (MCC): Up to 20% of mortgage interest as federal tax credit.
  • 10kDPA: $10,000 DPA forgivable in 5 years.

South Carolina

  • SC Housing Homebuyer Program: Below-market 30-year fixed.
  • Forgivable DPA: Up to $10,000 forgivable over 10 years.

South Dakota

  • SDHDA First-Time Homebuyer Program: Below-market rates plus optional DPA.
  • Tax Credit Mortgage Credit Certificate (MCC).

Tennessee

  • THDA Great Choice Loan: 30-year fixed plus DPA up to $7,500 (forgivable in 30 years if you stay).
  • Homeownership for the Brave: Additional 0.50% rate discount for military.

Texas

  • TSAHC My First Texas Home & My Choice Texas Home: DPA grant up to 5% (or repayable second).
  • TDHCA Mortgage Credit Certificate: MCC up to 20% of mortgage interest.
  • Targeted variants for teachers, police, firefighters, EMS, veterans.

Utah

  • Utah Housing First Home Loan: 30-year fixed with DPA up to 6%.
  • HomeAgain: For non-first-time buyers with income limits.

Vermont

  • VHFA Move Loan: Below-market rate.
  • ASSIST Second Mortgage: $15,000 deferred second for DPA/closing costs.

Virginia

  • Virginia Housing Down Payment Assistance Grant: Up to 2.5% of purchase price, no repayment.
  • Closing Cost Assistance Grant: Stackable for closing.
  • Mortgage Credit Certificate: Up to $2,000/year federal tax credit.

Washington

  • WSHFC Home Advantage & House Key Opportunity: Below-market 30-year fixed.
  • Multiple DPA options: 4% or 5% deferred second mortgages, plus Opportunity DPA up to $15,000.

West Virginia

  • WVHDF Homeownership Program: 30-year fixed plus $7,500–$10,000 DPA as repayable second.

Wisconsin

  • WHEDA Easy Close DPA: 6% of purchase price as a second mortgage.
  • WHEDA Capital Access DPA: $3,500 second.
  • Tax Advantage MCC.

Wyoming

  • Wyoming Community Development Authority Standard First-Time Buyer: Below-market rates.
  • Down Payment Assistance Program: Up to $15,000 deferred.

Washington DC

  • DC Open Doors: Below-market rate, no first-time buyer requirement, no purchase price limit.
  • DC HPAP (Home Purchase Assistance Program): Up to $202,000 (yes, two hundred thousand) DPA in zero-interest deferred loan for very low-income buyers.
  • EAHP (Employer Assisted Housing Program): $20,000+ for DC government employees.

Local programs to also check

In addition to state HFAs, look for:

  • City programs: New York City's HomeFirst, San Francisco's DALP, Chicago's TaxSmart MCC, Boston's ONE+ Boston program, Atlanta Beltline Affordable Housing initiatives.
  • County programs: Many counties run their own DPA programs in addition to state offerings.
  • Employer Assisted Housing (EAH): Hospitals, universities, and large employers often have programs for employees buying near the campus.
  • Community Development Block Grant (CDBG) programs: HUD-funded local DPA administered through cities and counties.
  • Federal Home Loan Bank grants: Welcome Home (Cincinnati), Equity Builder (Boston), AHP grants nationwide. Available through specific member banks.

How to combine programs

Many HFA programs can layer with FHA, VA, or USDA loans. Common stacks:

  • FHA + state HFA DPA: Most common combination. FHA's 3.5% down covered or supplemented by HFA assistance.
  • Conventional HomeReady + DPA: 3% down plus HFA second mortgage for closing costs.
  • VA loan + state DPA for closing costs: Some states allow DPA stacking on VA loans for closing costs.
  • MCC + first mortgage: Federal tax credit on mortgage interest, separate from the loan itself.

Confirm stacking rules with the HFA and the lender — not every program plays nicely with every other program. Some DPAs cannot stack with seller concessions, for example.

Income and recapture rules

Most HFA programs have income limits based on area median income (AMI) and household size. The limits vary widely:

  • Lower-income programs: 80% of AMI (~$60,000–$90,000 for a household of 4 depending on metro)
  • Standard programs: 100%–115% of AMI
  • Higher-income programs: 115%–140% of AMI (more common in high-cost coastal markets)

Many programs use tax-exempt bond financing, which triggers a recapture tax if you sell the home within 9 years and have significant income growth. The recapture is rare in practice (most borrowers don't trigger the income test), but it's worth knowing exists.

How to find your state's program

  1. Search "[Your state] housing finance agency."
  2. Visit the HFA website and look for "Homebuyer Programs" or "First-Time Homebuyers."
  3. Use the HFA's "Find a Lender" tool to identify approved loan officers.
  4. Contact 2–3 HFA-approved lenders for pre-approval. Verify each through NMLS Consumer Access.
  5. Complete homebuyer education (usually online, $75–$100, 4–8 hours).

Sources & verification

Disclosure

MLO Finder is a directory of mortgage loan officers, not a lender. We don't originate loans, set rates, or guarantee approval. Verify any loan officer's current licensing through NMLS Consumer Access before working with them. Information here is educational and not personalized financial advice — consult a licensed loan officer or financial planner for guidance specific to your situation.

FAQ

Frequently asked questions

Do I have to be a literal first-time buyer?
Most HFA programs define "first-time buyer" as anyone who hasn't owned a primary residence in the past 3 years. This means buyers who previously owned and then rented for 3+ years often re-qualify. Some programs (like Maryland's, Nevada's Home Is Possible, and DC Open Doors) have no first-time buyer requirement at all.
Does DPA have to be repaid?
It depends on the program. Three common structures: Grants (never repaid, like TSAHC and Florida Hometown Heroes), Forgivable seconds (forgiven after 5–10 years if you keep the home), and Repayable seconds (repaid monthly or as a balloon at sale/refinance). Read the assistance terms before accepting.
Will DPA affect my mortgage rate?
Usually slightly. HFA-bond-financed first mortgages can be 0.25%–0.50% above standard market rates because the program covers DPA and other costs through the rate. Many borrowers come out ahead because the DPA exceeds the rate premium over time, especially for buyers who would otherwise pay PMI for years.
Can I use DPA for closing costs instead of down payment?
In most programs, yes. The DPA can typically be applied to either the down payment, the closing costs, or both. Check program rules for exact uses.
Do HFA programs allow refinancing?
Most don't restrict refinancing of the first mortgage, though the DPA second mortgage usually must be paid off or subordinated at refinance.
How long does it take to close with an HFA program?
Usually 5–10 days longer than a standard mortgage because of the additional underwriting layer at the HFA. Plan for 35–45 days from contract to closing instead of the typical 30.
Are HFA programs only for low-income buyers?
No. Many programs have generous income limits that include moderate-income earners. A two-person household earning $115,000 in many metros still qualifies for HFA assistance. Don't assume you're above the limit without checking.

Editorial note. MLO Finder is a directory of mortgage loan officers, not a lender, broker, or financial advisor. Educational content is general information and is not a loan quote, underwriting decision, or financial advice. Programs, rates, and qualifying guidelines change frequently. Always verify a loan officer's active license and disciplinary history through NMLS Consumer Access before sharing personal information or signing documents.

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