First Time Home Buyer Programs: How to Become a First Time Home Buyer in all 50 States

Buying your first home has always been a monumental task. But in today’s insatiable housing market, it’s more of a life event than ever before.

In fact, buying a home has become so challenging that back in 2020, the average age of a first-time home buyer rose to 38–6 to 8 years more than it had been for the 30 years prior. And that’s not to mention how the average house-size-to-price ratio is shrinking across the country.  

That’s where first time home buyer programs come into the picture.

First Time Home Buyers (FTBH) programs are federal, state, and private programs that exist to help qualifying new home buyers put down payments on a new home and establish mortgages with manageable interest rates. This article will cover how the various types of FTBH programs work and how to become a first-time home buyer by using them.

We’ll offer a state-by-state breakdown of the state-level first time home buyer programs and review the qualifications you’ll need to have for the various high-level program types.

And last but not least, we’ll explain how to use our signature SelfStorage.com search tool to streamline the process of moving to your new home.

What Is a First-Time Homebuyer Program?

First time home buyer programs are federal and state-level grants, loan programs, or tax credits created with the intention of offering a first-time home buyer a mortgage with a low down payment, and assisting with closing costs so they can buy a house to close. These programs often offer favorable terms like low interest rates.

The Department of Housing and Urban Development, state housing finance agencies, and local governments create these programs to close the affordability gap and help US citizens build wealth.

What Counts as a “First-Time” Homebuyer?

The official Department of Housing and Urban Development definition of a first-time homebuyer is anyone who hasn’t owned a house–defined as a principal or primary residence–in the past three years.

This definition is broader than most people assume, which leaves the door open to some repeat buyers who meet the lookback requirement, meaning you can qualify as a first-time home buyer twice.

Let’s take a look at other situations where you might be considered a first-time home buyer:

• A couple in which one hasn’t owned a home in the past three years, even if the other person has.
• A “displaced homemaker,” or someone who stayed home and cared for their family and home but didn’t work or earn income, or a single parent,  who owned a home in the past with their former spouse but is no longer married
• A person who owns a mobile home with wheels or a trailer hitch still attached, a home converted from a school bus or mobile shipping container, or any other home that isn’t permanently attached to a foundational structure.
• A homeowner whose current primary residence fails to meet the local standards and building codes and making the changes required for the home to become compliant would cost more than the home’s reconstruction value.

There’s no maximum on how many times a person can qualify as a first-time home buyer in their lifetime. There are also no age requirements or limitations, meaning you can be 20 or 70 and still qualify for a first-time home buyer program.

Can You Qualify as a First-Time Homebuyer Twice?

You can qualify as a first-time homebuyer twice, or even more than two times. Even if you’re in a couple where one partner has owned a home, the other person may still be eligible. FTHB qualifications extend to displaced homemakers, single parents, and owners of non-permanent homes like mobile homes, school buses, and converted shipping containers.

Visit the official U.S. Department of Housing and Urban Development (HUD) website for more information on whether you can qualify as a first-time homebuyer twice. 

Types of First Time Home Buyer Programs

Types of first time home buyer programs include federal programs, state and local programs, tax credits, employer-backed loan programs, and private lenders who offer special FTHB rates.

Let’s take a look at each of these program types in a bit more detail.

Federal Programs

Federal-level first time home buyer programs include FHA loans, USDA loans, VA loans, and Fannie Mae/Freddie Mac programs like HomeReady and Home Possible. Besides being a first time home buyer,  federal programs require you to meet certain credit score and income restrictions. The down payment and interest rate requirements vary from program to program.

• Federal Housing Administration (FHA) Loan: Federal Housing Administration or FHA loans are set up for buyers with credit scores under 600 or smaller savings. And FHA loans only require down payments as low as 3.5% and no higher than 10%, depending on your credit score. FHA loan programs require a debt-to-income ratio of less than 43% of the homebuyer’s gross income.
• National Homebuyers Fund:  The National Homebuyers Fund provides up to 5% of the mortgage loan amount applied to either the down payment or closing costs. The National Homebuyer’s Fund is one of the more flexible federal loan programs. You don’t have to be a first-time buyer to take advantage of it, but you can be. and their credit score and income requirements aren’t strict, meaning if you have outstanding student or auto loan and credit card debt, you can still apply.
• Veteran Affairs (VA) Loan: VA loans are issued by the U.S. Department of Veterans Affairs and its private lending partners to active duty military personnel or retired veterans. Qualifying Servicemembers don’t need to pay down payments or private mortgage insurance (PMI) to receive VA loans, which have some of the most competitive interest rates.
• United States Department of Agriculture (USDA) Loan: USDA loans are available for those who are either building a new home or buying an already built one, as long as the house is in a rural area. There are income requirements that applicants have to meet, and you have to use the property as your primary residence. That said, to qualify for a USDA loan, you must meet the income requirements, live in an eligible rural area, and use the property as a principal residence. But USDA loans require no PMI mortgage insurance or down payment.

State & Local Down Payment Assistance (DPA)

Next on our list of first time home buyer programs is state and local-level downpayment assistance programs, closing cost assistance programs, and state and local grants.

• Down payment assistance: The down payment is the percentage of the house’s total purchase price that you’re able to pay upfront. Most mortgages require you to put down a specific down payment percentage of the total loan amount. Down payment assistance programs are typically grants or low to no-interest loans that pay a portion of your down payment, so you qualify for a mortgage and secure a lower interest rate.
• Closing cost assistance: Some state government programs help you cover closing costs. Closing costs are additional fees you pay at the end of the mortgage to close it out. They often equal 3%-6% of the loan amount. Programs that pay closing costs can help you pay off the loan amount and own the house more quickly.
• State and local government grants: Grants are different than loans in that you don’t have to pay back a grant. State and local government grant programs essentially pay your closing costs, down payments, or mortgage loans on your behalf, but you’ll have to meet income and credit report requirements to qualify.

Before we move on to specific state agencies that can help you with how to become a first-time homebuyer in your specific state, let’s review a few more specialized options.

Mortgage Credit Certificates (MCCs)

Mortgage Credit Certificates, or MCCs, are tax credits that state housing finance agencies issue to first-time homebuyers with low-to-moderate incomes. MCCs lower the amount you owe on your federal taxes by a particular percentage of the mortgage interest paid in the year you’re filing for.

An MCC allows you to adjust your paycheck withholdings in the amount of the tax credit throughout the year. The idea is that you can use this extra money to make your mortgage payments. Tax credits are different than deductions, as tax credits reduce your tax bill dollar-for-dollar.  So if you score a $1500 tax credit, your tax bill is $1500 lower.

But there’s a catch with Mortgage Credit Certificates. You have to apply to the state housing finance agency for your MCC before you close on the house.

Employer-Assisted & Special Private Programs

In addition to state and federal programs, here are employee-backed and special private loan programs that are set up to help first-time home buyers score their first house.

• The Good Neighbor Next Door (GNND): The GNND is a joint program backed by the U.S. Department of Housing and Urban Development (HUD). Although it’s not exclusively a first-time homebuyers program,  it offers law enforcement officers, firefighters, emergency medical technicians, and teachers a whopping 50% discount on specific HUD properties, most of which are foreclosures. And you’ll have to make the property your primary residence for a minimum of three years to qualify. 
• Specialty Down Payment Programs: There are some down payment programs designed specifically for military servicemembers, students, teachers, or medical professionals.
• Employer-Backed FTBH Programs: Some companies offer first time home buyer grants to their employees.
• Your Bank or Credit Union: Check with your own bank or credit union, as they sometimes offer reduced mortgage rates to their long-time members. In fact, credit unions will offer first-time home buyer loan specials with low interest rates and 0% down payments to new members, though you’ll probably still need private mortgage insurance.

Now that we’ve covered the state, local, and private first time home buyer programs at the high level, let’s zoom in and take a look at specific programs state by state.

First-Time Homebuyer Programs by State (A–Z)

Whether your state has a particularly high cost of living or you live in one of the more affordable states, all states have at least one first-time home buyer program administered through their housing finance agency. We’ve listed all 50 states in the table below in alphabetical order to make it easy for you to scroll down and find your state.

Tips for Applying to FTHB Programs

When you’re applying for an FTHB program, you’ll want to gather all your documents early and set realistic timelines to give the program plenty of time to process your application before you need the mortgage. Look into the particular program you’re applying to and find out when their application period is open, as some programs close midway through the year until their funds replenish.

For more information on the documents you need and program timeline specifications, you can:

• Visit HUD’s website.
• Check your state’s housing authority website.
• Visit your local government’s website.
• Ask your mortgage lender.
• Reach out to nonprofits and housing counselors.

Storage Tips for Your First Home Move

Moving anxiety is disruptive enough when you’re moving from one rental to another. And no matter how good a deal you get on your mortgage, home ownership requires an adjustment period. Self storage can play a huge role in easing your transition to your new home. For example, self storage can help you declutter and downsize before your move. 

Before you even start packing, take a thorough home inventory and decide what you don’t need to take with you as you go. Any duplicates or items you don’t use either get tossed, donated, sold, or put in storage.

And once you’ve decided what you’re keeping, prep as much as you can ahead of time and stage your moving boxes in your storage unit. You can book one storage unit near your current place and rent a second unit at the new home you’re buying. Book these units as close as possible to your old and new addresses, especially if you’re moving long-distance.

Pack and stage as many boxes and dismantled furniture into the self storage space as you can, little by little, during the month leading up to the move. On moving day, you just pull up to your storage and load up your rental truck. Or have the professional movers meet you there.

Instead of wasting time moving things in and out of your house, you’re simply cross-loading your already packed items from one unit to the other. Then you move the essentials into your new place and either return the truck or say goodbye to the movers.

Move out of the second unit into your new house as needed at your own pace, unpacking as you go. The rest of your belongings can stay in temporary storage, so you don’t live among boxes while you’re getting used to your new place.

But how do you find the ideal storage unit for your belongings, either near your current address or your new home? That’s where we come in.

After You Find Your First Time Home Buyer Program: SelfStorage.com Can Help

By now, you should have a pretty good idea of the range of first time home buyer programs available to help you. Whether it’s providing some of the down payment or closing costs or giving you a grant, loan, or tax credit, there are federal, state, and private loan programs whose sole purpose is to help an FTHB like you put the keys in your hand.

First, you can use our self storage size guide to explore different self storage unit sizes, layouts, how many rooms’ worth of stuff they can fit, and common use cases.

Then, you decide on what storage amenities you need. Maybe you need climate control for sensitive items like antiques or electronics. Or maybe you need to protect your valuable items with a security solution like surveillance cameras, onsite managers, or security service workers.

Punch the zip code you want to find a unit in into our handy self storage search tool, select the size and storage features you need, and we’ll find all nearby self storage units with everything you’re looking for.

You select your self storage move-in date, and we’ll even take care of the booking for you. And the best part? Our service is free!