First-Time Homebuyer & Down Payment Programs by State
Reduce your upfront costs with state down payment assistance, low-interest loans, and tax credits. Use this guide to find the right programs available in your state.
What is a first-time homebuyer program?
First-time homebuyer programs are financial incentives - like grants, loans, and credits - that help reduce the cost of buying a home. Most are managed by state Housing Finance Agencies (HFAs), local governments, or non-profits.
How to qualify for homebuyer assistance
While every program has unique rules, most government first-time buyer programs in 2026 share these core requirements:
- First-time status: You haven't owned a primary residence in the last 3 years.
- Credit score: Most programs require a minimum score between 580 and 640.
- Income limits: Your household income must fall within program limits, often around 80% to 120% of the Area Median Income (AMI).
- Primary residence: You must intend to live in the home as your main residence.
Types of down payment assistance programs by state
Most down payment assistance programs fall into one of these four structures:
Program type | Repayment terms | Best for |
Down payment grants | No repayment required (Gift) | Buyers with the lowest cash reserves |
Forgivable loans | Forgiven after 5–10 years of residency | Buyers planning to stay in the home long-term |
Deferred-payment loans | Paid back only when you sell or refinance | Buyers who need lower monthly payments now |
Mortgage tax credits | Annual federal tax reduction | Long-term affordability and tax savings |
National first-time homebuyer programs
Beyond state-specific help, several national programs offer low down payment options (as low as 0% to 3.5% down, depending on eligibility):
- FHA loans: Popular for buyers with lower credit scores (down payments as low as 3.5%)
- VA loans: May offer $0 down for veterans and active-duty service members
- USDA loans: May offer $0 down for eligible rural and suburban homes.
- Conventional loans: Some programs allow down payments as low as 3%, including options designed for low- to moderate-income buyers
Read more about National First-Time Homebuyer Programs and First-Time Homebuyer Programs in U.S. Territories.
Find first-time homebuyer programs by state
Many of the most valuable first-time homebuyer programs and down payment assistance options are offered at the state and local level, which is why exploring options by state is key.
Select your state below to explore available grants, low-interest loans, tax credits, and local incentives.
State-by-state directory
Frequently asked questions about homebuyer assistance
Do I have to pay back down payment assistance?
It depends on the program. Grants are never repaid. Forgivable loans are "erased" if you live in the home for a certain number of years. Deferred loans must be repaid when you sell the home.
Can I use multiple programs at once?
Yes, this is called "layering." Many buyers use a national FHA loan combined with a state down payment grant to cover nearly 100% of their upfront costs.
What is the maximum income for first-time buyer programs?
Limits vary by county. Most down payment assistance programs by state cap income based on local median income levels, which are updated annually.
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