Buying your first home is exciting, but the combination of down payment, closing costs, and moving expenses can feel like a wall you just can’t get over. Across the country, first-time homebuyer programs and first-time homebuyer grants are designed to help you climb that wall with less stress and a lot more confidence.
Every state offers some kind of support for buyers who meet income, purchase price, and credit guidelines. Some programs provide low-interest mortgages, others supply down payment assistance as a forgivable loan or true grant, and many layer on tax credits that reduce what you owe each year.
How First-Time Buyer Help Works In 2025
Most first-time homebuyer programs are run through a local state Housing Finance Agency (HFA) to help assist with down payments and the hidden costs of buying a home. You apply through an approved lender, and that lender handles both your main mortgage and any attached payment assistance.
Common building blocks include:
- Low down payment loans: FHA mortgages at 3.5% down, conventional loans at 3% down, VA and USDA mortgages at 0% down for those who qualify.
- Down payment assistance (DPA): Grants, deferred loans, or forgivable second mortgages that cover down payment and closing costs.
- Mortgage Tax Credit Certificates (MCCs): Tax credits, often up to $2,000 per year, based on a portion of your mortgage interest.
Most programs require you to:
- Buy a primary residence
- Stay under income and purchase price caps for your area
- Complete a homebuyer education course
- Work with an approved lender or mortgage broker
With the right tools in place, homeownership becomes more manageable, more efficient, and far less stressful. A mortgage payment calculator can help you see whether a 30-year mortgage, a 15-year mortgage, or something like an adjustable-rate mortgage fits your budget.
Many buyers also use a mortgage payoff calculator, early payoff mortgage calculator, or extra payment mortgage calculator to see how paying a little more each month can shorten their term or lower their interest over time.
State-by-State Snapshot Of 2025 Programs
Every state offers its own distinct mix of financial assistance programs for buyers. The details of each program can change over time, so you’ll always want to confirm specifics with a participating lender or your state HFA, but this overview gives you a sense of what to look for where you plan to buy.
Alabama
The Alabama Housing Finance Authority offers affordable 30-year loans paired with Step Up down payment assistance, which can lend up to 4% of the purchase price as a 10-year second mortgage. Many buyers can also use an Affordable Income Subsidy Grant to help with closing costs and apply for a Mortgage Credit Certificate.
Alaska
Alaska Housing Finance Corporation works with local partners through AHELP to provide down payment help that may be a grant, deferred loan, or forgivable loan. Closing cost assistance and below-market-rate mortgages are available, and some options are tailored for veterans and unique property types.
Arizona
Home Plus provides up to 4% of the mortgage amount in down payment assistance as a deferred second loan that can be forgiven after a few years if you stay put. Certain areas also have access to Pathway to Purchase, which can grant up to 10% of the loan amount, capped at a set limit.
Arkansas
The Arkansas Development Finance Authority offers below-market 30-year fixed-rate loans that can be paired with down payment assistance, often structured as a forgivable second mortgage when you stay in your home for the required period.
California
CalHFA offers conventional, FHA, VA, and USDA loans with the option to add MyHome Assistance for up to 3.5% of the purchase price as a deferred “silent” second. Payment is due when you sell, refinance, or pay off the home, which makes upfront costs much easier to manage.
Colorado
The Colorado Housing and Finance Authority lets buyers choose between a grant up to 3% of the first mortgage or a deferred second loan up to 4%. The grant never requires repayment, while the second loan is due only when you refinance or pay off the main mortgage.
Connecticut
The Connecticut Housing Finance Authority offers below-market loans plus a Down Payment Assistance Program and the Time To Own forgivable loan, which can go up to tens of thousands of dollars with 0% interest and forgiveness over time if you remain in the home.
Delaware
Delaware State Housing Authority provides affordable loans and down payment assistance, typically as a 0% second mortgage that may be forgivable or deferred. First-time buyers can also benefit from a Mortgage Credit Certificate worth a portion of their mortgage interest each year.
District of Columbia
DC Open Doors offers competitive first mortgages paired with down payment assistance loans up to a set % of the loan amount, often forgivable after a period of occupancy. Local programs like HPAP can provide additional gap financing, and many buyers tap into an MCC for ongoing tax relief.
Florida
Florida Housing’s programs deliver low-rate loans plus down payment assistance, such as the Florida Assist deferred loan up to $10,000. The Hometown Heroes program gives extra help to law enforcement, educators, healthcare workers, childcare employees, and military households through larger assistance caps and competitive rates.
Georgia
The Georgia Dream Homeownership Program pairs 30-year loans with a standard $7,500 down payment assistance loan at 0% interest, deferred until payoff. Enhanced assistance is available for community heroes and military buyers, with some options granting $10,000 or more.
Hawaii
Hawaii Housing Finance & Development Corporation focuses mainly on Mortgage Credit Certificates that credit 20% of your mortgage interest each year, capped at an annual amount. County-level and Native Hawaiian programs sometimes provide separate down payment grants or loans.
Idaho
Idaho Housing and Finance Association offers the Idaho First Mortgage program with below-market rates and reduced mortgage insurance costs. Buyers can add forgivable or repayable down payment second loans and an MCC worth up to a set % of annual interest.
Illinois
IHDA Mortgage’s Access programs provide a variety of options, including forgivable assistance over 10 years, deferred 0% loans due at payoff, or repayable 0% loans over 10 years. Each pairs with a fixed-rate FHA, VA, USDA, or conventional mortgage.
Indiana
The Indiana Housing and Community Development Authority offers First Place and Next Home programs, both of which can add 3 to 6% of the purchase price in down payment assistance as a second mortgage that forgives after two years if you remain in the home.
Iowa
Iowa Finance Authority’s FirstHome and FirstHome Plus provide low-interest loans and down payment assistance grants of $2,500 or deferred second loans that cover up to around 5% of the purchase price. Military buyers may receive an additional grant geared toward homeownership.
Kansas
Kansas Housing Resources Corporation supports first-time buyers with forgivable down payment loans worth around 15 to 20% of the home’s purchase price, capped by program rules. Buyers are generally asked to contribute a small portion from their own funds.
Kentucky
Kentucky Housing Corporation offers fixed-rate loans with DPA up to $10,000, either as a 10-year repayable loan at a moderate interest rate or as a 0% deferred loan for lower-income households.
Louisiana
Louisiana Housing Corporation provides below-market-rate mortgages and DPA programs that can supply 3 to 4% of the loan amount for down payment and closing costs, often forgiven after a short occupancy period. Mortgage Credit Certificates are also available.
Maine
MaineHousing’s First Home Loan features a below-market interest rate and can be paired with Advantage down payment grants, usually up to $5,000, for buyers who complete a homebuyer education class and contribute at least $1,000 of their own money.
Maryland
The Maryland Mortgage Program offers fixed-rate loans with $6,000 down payment assistance as a zero-interest loan and additional options that provide larger grants or forgivable loans. Special initiatives support employees working with participating employers and buyers carrying student loan debt.
Massachusetts
MassHousing provides affordable loans and down payment assistance up to $30,000 in some high-cost communities, often structured as a 0% loan forgivable after 15 years. The ONE Mortgage program through MHP offers low rates without private mortgage insurance and tailored support for first-time buyers.
Michigan
The MI Home Loan program offers affordable FHA, VA, USDA, or conventional mortgages paired with up to $10,000 in down payment assistance as a 0% deferred loan. Borrowers can add an MCC that credits up to a portion of annual interest, subject to program limits.
Minnesota
Minnesota Housing’s Start Up and Step Up programs offer first mortgages and DPA options, including deferred loans up to $16,000 at 0% interest or monthly payment loans up to $18,000 repaid over 10 years. MCCs and specialized funds for lower-income households round out the support.
Mississippi
Mississippi Home Corporation’s Smart Solution program offers down payment assistance of up to 3% of the purchase price as a forgivable second loan when you stay long enough. Military, teacher, and law enforcement programs often provide extra funding or separate grants.
Missouri
The Missouri Housing Development Commission’s First Place and Next Step programs allow buyers to choose a slightly higher rate with forgivable DPA, usually around 4% of the loan amount, or a lower rate without assistance. Mortgage Credit Certificates are available to many first-time buyers.
Montana
Montana Housing delivers low-interest 30-year loans and down payment assistance through programs like MBOH Plus, which offers up to $10,000 as a second mortgage, and Bond Advantage, which can provide a larger deferred second for qualified buyers. MCCs and veteran-focused loans offer further savings.
Nebraska
NIFA’s Homebuyer Loan Programs pair affordable mortgages with Homebuyer Assistance second loans up to 5% of the purchase price, capped by a dollar limit. The second loan typically charges low interest and often is deferred for several years before repayment begins.
Nevada
The Home Is Possible program gives grants of about 4 to 5% of the loan amount for down payment and closing costs. Teachers and veterans can receive specialized versions of the program with set grant amounts and competitive interest rates.
New Hampshire
New Hampshire Housing offers Home Preferred and Home Flex mortgages with down payment assistance up to 4% of the loan amount in a deferred second mortgage forgiven after four years. Buyers can also benefit from MCCs and an extra $10,000 assistance option specifically designed for first-generation purchasers.
New Jersey
NJHMFA’s First-Time Homebuyer Mortgage offers below-market rates plus a $10,000 DPA loan that forgives over five years. Separate programs serve first-generation buyers, veterans, and public safety employees with enhanced terms.
New Mexico
The New Mexico Mortgage Finance Authority offers FirstHome and NextHome programs with down payment assistance up to several tens of thousands of dollars across layered options, including forgivable loans for income-qualified buyers and MCCs for long-term tax relief.
New York
SONYMA loans feature low down payments and competitive fixed rates, plus DPAL and DPAL Plus second loans that can provide $15,000 to $30,000, forgiven after 10 years when conditions are met. Local programs like NYC’s HomeFirst add sizable grants in certain cities.
North Carolina
NC Home Advantage Mortgages offer up to 3% of the loan amount in DPA, forgiven after 15 years. First-time buyers and veterans may obtain $15,000 in additional assistance, and some programs include a mortgage tax credit as well.
North Dakota
North Dakota Housing Finance Agency provides FirstHome and HomeAccess loans with low rates and down payment and closing cost assistance, often structured as a credit at closing or deferred second that you repay when you pay off the home.
Ohio
OHFA’s First-Time Homebuyer program includes YourChoice! DPA of 2.5% or 5% of the purchase price, forgiven after seven years. Specialized programs reward recent graduates and public service workers with discounted rates and faster forgiveness schedules.
Oklahoma
OHFA’s Homebuyer Down Payment Assistance program pairs with OHFA Gold loans to supply 3.5% of the loan amount as a 0% second mortgage forgiven after seven years, with discounted rates available for teachers and first responders.
Oregon
The Oregon Bond Residential Loan Program offers two main choices, one focused on a lower interest rate and another that supplies a 3% cash grant toward down payment or closing at a slightly higher rate. In certain cities, buyers may be able to layer MCCs with local DPA programs to maximize the assistance available.
Pennsylvania
PHFA’s Keystone Home Loan Program offers several DPA options, including a 0% loan repaid over 10 years and a K-FIT second loan up to 5% of the purchase price that is forgiven over 10 years. Additional resources serve very low-income buyers and people with disabilities.
Rhode Island
RIHousing provides fixed-rate loans with programs such as 10kDPA, which offers a $10,000 forgivable down payment loan that disappears after five years if you remain in the home. A similar program exists for smaller amounts, and MCCs are available to many first-time buyers.
South Carolina
SC Housing’s Homebuyer Program and Palmetto Home Advantage offer low-rate mortgages and down payment assistance, sometimes forgivable after 10 years. Palmetto Heroes provides extra support for teachers, medical professionals, public safety workers, and military households.
South Dakota
South Dakota Housing Development Authority offers first-time homebuyer loans with DPA provided through deferred 0% second mortgages or small grants like the Advance Pay option. Borrowers usually contribute at least a modest amount of their own funds.
Tennessee
THDA’s Great Choice Home Loan delivers affordable 30-year rates plus Great Choice Plus down payment assistance up to $6,000 as a no-interest second mortgage, with forgiveness beginning after year 10. Military buyers may receive a rate reduction through the Homeownership for Heroes program.
Texas
Texas State Affordable Housing Corporation offers Home Sweet Texas and Homes for Texas Heroes, both with 3 to 5% down payment assistance structured as true grants or forgivable second liens. TDHCA’s My First Texas Home provides similar assistance and a combined mortgage credit certificate option.
Utah
Utah Housing Corporation offers FHA and conventional loans paired with a down payment assistance second mortgage, often around 4% of the home price, allowing many buyers to finance nearly 100% of their purchase. Special programs help law enforcement and some new construction buyers.
Vermont
Vermont Housing Finance Agency’s MOVE Mortgage offers low-rate loans with ASSIST second mortgages up to $15,000 at 0% interest, deferred until payoff. Recent first-generation programs have provided forgivable assistance for buyers whose parents never owned a home, along with MCCs.
Virginia
Virginia Housing offers 30-year fixed mortgages with options for grants of 2 to 2.5% of the purchase price or 0% deferred second mortgages. Separate statewide DPA through DHCD can provide up to around 10% of the home’s price as a grant for income-qualified first-time buyers.
Washington
Washington State Housing Finance Commission’s Home Advantage and House Key programs provide below-market loans with several DPA second mortgages, ranging from 4% of the loan amount to fixed dollar limits of $10,000 to $15,000 for veterans, buyers with disabilities, or purchasers in certain areas.
West Virginia
West Virginia Housing Development Fund offers Homeownership Program and Movin’ Up loans that can reach 100% financing when combined with WCDA’s down payment and closing cost assistance loans, usually low-interest seconds repaid over 15 years or structured with short deferral.
Wisconsin
WHEDA Advantage mortgages help first-time homebuyers and those with low incomes by offering conventional, FHA, or USDA loans, along with Capital Access DPA loans. Assistance can be a 0% deferred second or a low-rate 10-year second loan, and MCCs are often available.
Wyoming
Wyoming Community Development Authority’s Homebuyer Program offers low-interest first mortgages and down payment assistance, such as the Home$tretch 0% loan up to $10,000 or the amortizing DPA up to $15,000. A minimum borrower contribution is required, usually a modest amount.
Putting It All Together
Homeownership feels a lot more realistic once you realize how many first-time homebuyer programs and first-time homebuyer grants exist in every corner of the country. Grants, forgivable loans, low-rate mortgages, and tax credits can combine to reduce your upfront cash, trim your monthly payment, and make that first set of house keys much easier to reach.
For personal guidance that connects the dots between first-time homebuyer programs, first-time homebuyer grants, and your own situation, reach out to the salary-based loan specialists at Trusted American Mortgage.
Get in touch with our team today and take your first confident step toward owning a home with the help of the grant and assistance programs that are currently available in your state. Trusted American Mortgage is licensed to work with you in over 20 states.
