How to Qualify for First Time Home Buyer Programs

Qualifying for first-time home buyer programs may not be as hard as you think. These programs are specifically designed to help qualified first-time homebuyers like you overcome some of the more common hurdles people face when buying a home. Those hurdles, of course, include saving for a down payment and the closing costs.

If you could use some assistance as a first-time homebuyer—and who couldn’t—then this article is for you.

Many Down Payment Assistance Programs Are Available

One of the biggest roadblocks qualified first-time homebuyers encounter when buying a home is coming up with a down payment.

The U.S. Department of Housing and Urban Development provides funds and grants to help first-time homebuyers who need financial assistance. There are also conventional loans, fixed-rate loans, and adjustable-rate mortgage options that require little or no down payment.

This section describes some homebuyer programs that can help with your down payment.

Community-based down payment assistance programs

Many cities and communities offer payment assistance programs if you buy within their municipal boundaries. For instance, in Denver, there is a program that offers a loan of up to $10,000 for qualified applicants.

Charitable down payment assistance programs

Many charitable organizations offer down payment assistance programs that include grants and loans, which can be used with most first-time homebuyer programs. These can be regional or national and can apply to first-time buyers in general, to underserved groups such as Native Americans, to specific homes such as those that are energy-efficient, or even to underserved areas where incomes are below a certain level.

State and regional down payment assistance programs

Some state and local agencies have down payment assistance programs to help qualified first-time homebuyers purchase a home. California, for instance, has the GSFA, which offers a 0% interest rate loan of up to 5.5 percent of the loan amount. This loan can be used toward a home’s down payment and closing costs. Meanwhile, Texas offers several payment assistance programs through the TDHCA.

National down payment assistance programs

There are multiple national down payment assistance programs available as well, including the Chenoa Fund, which offers 3.5% to 5% of the home’s purchase price in repayable or forgivable assistance, and FHA’s Within Reach program, which offers a forgivable second loan.

Additionally, APM has its own in-house down payment assistance program that offers a lower cost to the borrower. You don’t have to be a first-time homebuyer to access this amazing program. Click here to learn more.

Ask us about the other down payment assistance programs available in your area. And while you’re discussing homebuyer programs, you should learn about mortgage loan options as well.