Insight for first-time home buyers.

Oh, plenty of states in America have first-time homebuyer programs! These programs are designed to help people overcome the hurdles of homeownership, such as saving for a down payment or navigating tricky mortgage terms. Each state has its program with unique benefits, but many offer low-interest loans, down payment assistance, and even grants to first-timers.

Take California, for instance—it has the CalHFA (California Housing Finance Agency) programs, which provide low-interest loans and assistance for first-time buyers. Texas offers similar programs through the Texas Department of Housing and Community Affairs (TDHCA). Florida has the Florida Housing program, which offers down payment and closing cost assistance. Even smaller states like Vermont and New Hampshire have robust programs.

But let’s not stop there! You probably want to know how to qualify, right?

Financial Advisor: Qualifying for these programs usually depends on a few common factors. One of the biggies is income level—most first-time homebuyer programs are geared toward low- to moderate-income households. Your household income must be below a specific limit, which can vary by location and family size.

And, of course, you generally have to be a first-time buyer, meaning you haven’t owned a home in the past three years, although there are exceptions. Also, credit score requirements come into play—many programs require at least a decent score, something in the mid-600s, though this can vary.

Housing Policy Specialist: Let’s not forget about local nuances, though! Some programs are even more specific, offering benefits for veterans, essential workers like teachers and healthcare providers, or those buying in certain areas, such as rural or revitalization zones. For instance, USDA loans are available in rural areas across many states and offer zero down payment options!

You might also need to complete a homebuyer education course. It’s meant to help you navigate the home-buying process and make intelligent decisions—like driver's ed but for houses.