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First-time homebuyer programs by state

Bankrate logo Bankrate 4/21/2021 Suzanne De Vita
a large building in the background: A graphic with a house and map of the U.S. © Image by Getty Images/Illustration by Hunter Newton/Bankrate A graphic with a house and map of the U.S.

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

StateHFAMortgage lenders
Illinois first-time homebuyer programsIllinois Housing Development AuthorityIllinois mortgage lenders
Indiana first-time homebuyer programsIndiana Housing & Community Development AuthorityIndiana mortgage lenders
Iowa first-time homebuyer programsIowa Finance AuthorityIowa mortgage lenders
Kansas first-time homebuyer programsKansas Housing Resources CorporationKansas mortgage lenders
Michigan first-time homebuyer programsMichigan State Housing Development AuthorityMichigan mortgage lenders
Minnesota first-time homebuyer programsMinnesota Housing Finance AgencyMinnesota mortgage lenders
Missouri first-time homebuyer programsMissouri Housing Development CommissionMissouri mortgage lenders
Nebraska first-time homebuyer programsNebraska Investment Finance AuthorityNebraska mortgage lenders
North Dakota first-time homebuyer programsNorth Dakota Housing Finance AgencyNorth Dakota mortgage lenders
Ohio first-time homebuyer programsOhio Housing Finance AgencyOhio mortgage lenders
South Dakota first-time homebuyer programsSouth Dakota Housing Development AuthoritySouth Dakota mortgage lenders
Wisconsin first-time homebuyer programsWisconsin Housing and Economic Development AuthorityWisconsin mortgage lenders

Northeast

StateHFAMortgage lenders
Connecticut first-time homebuyer programsConnecticut Housing Finance AuthorityConnecticut mortgage lenders
Maine first-time homebuyer programsMaine State Housing AuthorityMaine mortgage lenders
Massachusetts first-time homebuyer programsMassachusetts Department of Housing and Community DevelopmentMassachusetts mortgage lenders
New Hampshire first-time homebuyer programsNew Hampshire Housing Finance AuthorityNew Hampshire mortgage lenders
New Jersey first-time homebuyer programsNew Jersey Housing and Mortgage Finance AgencyNew Jersey mortgage lenders
New York first-time homebuyer programsState of New York Mortgage AgencyNew York mortgage lenders
Pennsylvania first-time homebuyer programsPennsylvania Housing Finance AgencyPennsylvania mortgage lenders
Rhode Island first-time homebuyer programsRhode Island HousingRhode Island mortgage lenders
Vermont first-time homebuyer programsVermont Housing Finance AgencyVermont mortgage lenders

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South

StateHFAMortgage lenders
Alabama first-time homebuyer programsAlabama Housing Finance AuthorityAlabama mortgage lenders
Arkansas first-time homebuyer programsArkansas Development Finance AuthorityArkansas mortgage lenders
Delaware first-time homebuyer programsDelaware State Housing AuthorityDelaware mortgage lenders
Florida first-time homebuyer programsFlorida Housing Finance CorporationFlorida mortgage lenders
Georgia first-time homebuyer programsGeorgia Department of Community AffairsGeorgia mortgage lenders
Kentucky first-time homebuyer programsKentucky Housing CorporationKentucky mortgage lenders
Louisiana first-time homebuyer programsLouisiana Housing CorporationLouisiana mortgage lenders
Maryland first-time homebuyer programsMaryland Department of Housing and Community DevelopmentMaryland mortgage lenders
Mississippi first-time homebuyer programsMississippi Home CorporationMississippi mortgage lenders
North Carolina first-time homebuyer programsNorth Carolina Housing Finance AgencyNorth Carolina mortgage lenders
Oklahoma first-time homebuyer programsOklahoma Housing Finance AgencyOklahoma mortgage lenders
South Carolina first-time homebuyer programsSouth Carolina State Housing Finance & Development AuthoritySouth Carolina mortgage lenders
Tennessee first-time homebuyer programsTennessee Housing Development AgencyTennessee mortgage lenders
Texas first-time homebuyer programsTexas Department of Housing and Community AffairsTexas mortgage lenders
Virginia first-time homebuyer programsVirginia HousingVirginia mortgage lenders
Washington, D.C. first-time homebuyer programsDistrict of Columbia Housing Finance AgencyWashington, D.C. mortgage lenders
West Virginia first-time homebuyer programsWest Virginia Housing Development FundWest Virginia mortgage lenders

West

StateHFAMortgage lenders
Alaska first-time homebuyer programsAlaska Housing Finance CorporationAlaska mortgage lenders
Arizona first-time homebuyer programsArizona Industrial Development AuthorityArizona mortgage lenders
California first-time homebuyer programsCalifornia Housing Finance AgencyCalifornia mortgage lenders
Colorado first-time homebuyer programsColorado Housing and Finance AuthorityColorado mortgage lenders
Hawaii first-time homebuyer programsHawaii Housing Finance & Development CorporationHawaii mortgage lenders
Idaho first-time homebuyer programsIdaho Housing and Finance AssociationIdaho mortgage lenders
Montana first-time homebuyer programsMontana HousingMontana mortgage lenders
Nevada first-time homebuyer programsNevada Housing DivisionNevada mortgage lenders
New Mexico first-time homebuyer programsNew Mexico Mortgage Finance AuthorityNew Mexico mortgage lenders
Oregon first-time homebuyer programsOregon Housing and Community ServicesOregon mortgage lenders
Utah first-time homebuyer programsUtah Housing CorporationUtah mortgage lenders
Washington first-time homebuyer programsWashington State Housing Finance CommissionWashington mortgage lenders
Wyoming first-time homebuyer programsWyoming Community Development AuthorityWyoming 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:

  • Locate your state's housing finance agency website in the tables above and look for a list of "approved" or "participating" lenders.
  • Look up lender reviews and testimonials through Bankrate.
  • Visit the U.S. Department of Housing and Urban Development's State Information page, locate your state and search for "Homebuying programs" or "Homeownership assistance." In addition to state-level programs, this resource can help you find programs by city, county or town.
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