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A Guide to First Time Home Buying Programs

A pivotal aspect of the American dream involves buying a home. As a first-timer, buying a home could be quite difficult considering the requirements involved. It’s okay to be cautious about making a costly mistake so you should ask specific questions.

You may also be thinking of the most suitable way to make a payment or close a deal. The information in this article will guide you to choosing the best and most beneficial home buyer programs.

Different Kinds of Home Buyer Programs for First-Timers

The expenses first-timers face when buying a home can be mind-blowing. Fortunately, they can get help with down payment assistance, closing fees, or from government-based and humanitarian projects/programs.

1. Down Payment (DP) Assistance

The first payment, usually a large one, which you have to pay whenever you purchase something with the agreement to pay later, is a down payment. This kind of payment is usually required for the majority of mortgages. Some first-timers may believe that a 20 percent down payment is needed to acquire a mortgage. However, there are a lot of lenders who disburse loans to beginner home buyers for as low as 3 percent.

2. Down Payment Assistance (DPA) Loans

You could get assistance for down payments through some types of loan payments such as deferred payment loans, forgiven loans, as well as second mortgages. This will help to lessen the cost of acquiring the home of your dreams.

For a deferred payment loan, you must pay completely when you pay off, trade, refinance, or move your mortgage plan. Second mortgage loans on the other hand are paid back during the period of the payment of main mortgages.

3. DPA Grants

If you are unable to acquire loans, you could get grants. The good part is that, unlike loans, they are not paid back. Every state or Government has its own conditions for receiving grants and loans. So, it’s better to check your state or local government website on available programs for first-time homebuyers.

4. Government Support Loans

There are some loans provided by the government as support to newbies to purchase their homes. These loans are well-insured which means they are of less risk to people. Some of them include Federal Housing Administration (FHA) loans and United States Department of Agriculture (USDA) loans. You can visit this website to get more information on government support loans.

5. Tax Credits

You can save on taxes through several reductions. For instance, subtract the mortgage insurance you have to pay from your taxes if it is below $750,000 dollars. Examples of this are the PMI (Private Mortgage Insurance) and MIP (Mortgage Insurance Premium). You could also check your local government to find out if there are additional credits and deductions.

6. Closing Assist

The Government also has programs to help first-timers make closing payments. Closing fees are the extra expenses you pay after concluding the mortgage operations. They usually span between three to six percent of the entire cost of the home loan. Your seller can also help with the closing assist in the form of title insurance, legal fees, and taxes on real estate.

7. Federal Programs for Beginner Home Buyers

Federal programs for first-time homebuyers are available to anyone from or legally living in the United States. You may not qualify for all the programs and you don’t need to reside in a particular state to qualify for it. Just check the requirements for each program. Some examples are VA loans, FHA loans, USDA loans, good neighbor programs, and the home path program.

8. Charitable Programs

Philanthropic organizations do have plans for persons with a below-average income, which you may qualify for. Though they vary from state to state, these organizations are non-governmental and also non-profit oriented. Therefore, it may be quite difficult to win this as many may be vying for the same package. Still, try!

9. Employer Backed Programs

Your employer can help you get a house. Some employers are starting to adopt housing incentives for their employees to cover closing costs and down payments. This may come in form of a loan that’s pardonable after a period of time, or a loan.

Additionally, the labor union you belong to may offer assistance with the closing. The employer-backed program is usually flexible but at the employer’s discretion. The programs here are based on what your employer offers you, and there are variances in workplaces. So you need to find out from your HR if there are any such packages.

Who Can Benefit from First-Time Home Buying Programs?

Having gone through the first-timer programs above, you might be wondering whether you are qualified. There are variances about who a first-time buyer is. However, the most accepted definition is one who hasn’t owned a home in the past three years.

If you own an investment or rental property, you are not eligible for these programs, even if you do not live in the property. Also, as a student, getting a house through your student loan may be quite difficult but the same programs for first-time buyers can still apply. You can click on to read more about first-time home buyers.


There are a lot of grants and loans available for beginner home buyers. You only need to check the requirements to be sure you are truly qualified for them. If you do qualify for any of the above-mentioned offers, do well to explore them and make a good choice.


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About the Author

Kaya Wittenburg

Blog Author and CEO

Kaya Wittenburg is the Founder and CEO of Sky Five Properties. Since the age of 10, real estate has been deeply ingrained into his thoughts. With world-class negotiation and deal-making skills, he brings a highly impactful presence into every transaction that he touches.

He is here to help you use real estate as a vehicle to develop your own personal empire and feel deeply satisfied along the way. If you have an interest in buying, selling or renting property in South Florida, contact Kaya today.

Feel free to call me at: (305) 357-0635
or contact via email: