How first time homebuyer programs can open the doors to homeownership for millions of Americans. Whether you’re purchasing your first property or haven’t owned in three years, this guide explains everything you need to know about qualifying, applying, and succeeding as a first-time homebuyer.
What Does “First Time Homebuyer” Mean?
A first time homebuyer is someone who hasn’t owned a principal residence in the past three years. If you’re married, both spouses must meet this requirement. This classification allows you to qualify for specific homebuyer assistance programs designed to ease your path into homeownership.
Benefits of Being a First Time Homebuyer
There are several advantages to being a first time homebuyer in This Year:
- Access to down payment assistance and grants
- Special low-interest mortgage programs
- Waived or reduced closing costs
- FHA loans with low credit requirements
How First Time Homebuyer Programs Work
Most first time homebuyer programs are run by federal or state governments, housing authorities, or non-profits. These programs often include:
- Educational courses for first-time buyers
- Down payment assistance programs (DPAs)
- FHA, USDA, and VA loan options
To see which ones apply to you, check our homebuyer programs directory.
Eligibility Criteria for First Time Homebuyers
While requirements may vary, most programs require:
- A minimum credit score (typically 580–640)
- Steady employment and income verification
- Low-to-moderate income levels based on your area
- Completion of a homebuyer education course
How to Apply as a First Time Homebuyer
- Check your credit score and improve it if needed.
- Gather necessary documentation like income statements, tax returns, and ID.
- Get pre-approved for a mortgage from a lender that offers first time buyer programs.
- Find a real estate agent experienced with first time homebuyers.
- Apply for local or national programs that fit your profile.
Common Mistakes First Time Homebuyers Should Avoid
- Not comparing loan offers
- Skipping the home inspection
- Underestimating total costs (taxes, insurance, maintenance)
- Ignoring local first-time buyer benefits
Where to Find First Time Homebuyer Programs
You can find programs through:
- HUD.gov – Buying a Home
- Homebuyer Programs on Resident Action Project
- Learn About Section 8 Assistance
Why This Year Is a Great Year to Become a First Time Homebuyer
With rising rents, inflation, and changing mortgage interest rates, this year may be the ideal year to explore first time homebuyer opportunities. Many state programs are expanding, and government incentives remain strong.
Helpful Resources
Take Action Now
How first time homebuyer programs are within your reach—you just need to start. Begin by learning about your local and national options, securing financial documents, and applying with confidence.