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First-time homebuyer programs — federal + state + local stack

First-time buyers in 2026 have access to a layered set of programs at federal, state, and local levels. Most can be combined; few buyers know the full stack exists. This article enumerates the major options + how to verify eligibility before applying.

Published 2026-04-25 · Last reviewed 2026-04-27 · methodology

Federal mortgage programs

**FHA (Federal Housing Administration)** — 3.5% down with 580+ FICO; 10% down with 500-579. Mortgage Insurance Premium (MIP) for life of loan unless you put 10%+ down. 2026 county loan limits range $498k (low-cost) to $1.15M (high-cost). HUD.gov has the lookup.

**VA (Department of Veterans Affairs)** — 0% down for qualified veterans + active military + surviving spouses. NO mortgage insurance. Funding fee 1.4-3.6% (waived for disabled veterans). No income limit. No PMI. VA.gov has eligibility certificate flow.

**USDA Rural Development** — 0% down for properties in eligible rural areas. Income capped at 115% of area median. Excellent for non-metro buyers. eligibility.sc.egov.usda.gov has address lookup.

**HomeReady (Fannie Mae) / Home Possible (Freddie Mac)** — 3% down conventional with reduced PMI for income ≤80% of AMI. Stacks with state DPA (down-payment assistance).

State down-payment assistance (DPA)

Every state has at least one DPA program. Common types: forgivable loans (forgiven after 5-10 years residency), deferred-payment 2nd mortgages (paid at sale/refinance), tax credits (mortgage credit certificate / MCC).

**California CalHFA** — MyHome Assistance up to 3.5% of purchase price (deferred 2nd lien). Income capped ~$200k Bay Area / $145k Central Valley.

**Texas TSAHC** — 5% grant (forgivable) for low-mod-income buyers up to specified limits.

**Florida Hometown Heroes** — $35k for teachers, first responders, healthcare. 0% deferred.

**New York SONYMA** — Achieving the Dream + DPA up to $15k.

Find your state's via NCSHA.org member directory.

Local programs

**City + county programs** — many municipalities offer additional DPA for buyers in target neighborhoods (revitalization zones).

**Employer-assisted housing** — universities, hospitals, large employers sometimes offer forgivable loans for staff buying near campus.

**Land trusts** — community land trusts (CLTs) sell homes at below-market prices in exchange for resale-cap restrictions. Common in Burlington VT, Boston, Atlanta.

Stacking rules

FHA + state DPA = common stack. State DPA covers down + closing costs.

VA + state DPA = often allowed but verify (some states' DPA structures conflict with VA appraisal).

USDA + state DPA = usually allowed.

MCC (mortgage credit certificate) = federal tax credit on mortgage interest paid; stacks with all of above.

Always verify with lender + state agency BEFORE making offer. Some programs have first-come-first-served funding that depletes.

What zipradar shows

First-time buyer programs are NOT in our 12-dimension federation. NCSHA.org + HUD.gov + VA.gov + USDA.gov are canonical sources — linked from /methodology/.

Pair with /topic/property-tax/[zip]/ for after-purchase ongoing cost + /learn/property-tax-escrow-when-you-buy/ for closing financing details.

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