Many first-time buyers assume they need a large down payment saved up before they can buy — but a range of programs exist specifically to lower that barrier.
State and Local Down Payment Assistance
Most states offer some form of down payment assistance program, often in the form of grants or low-interest second loans that help cover your down payment and closing costs. Eligibility and amounts vary widely by location.
FHA Loans
FHA loans allow down payments as low as 3.5% for buyers with qualifying credit scores, making them popular among first-time buyers with limited savings.
Good Neighbor Next Door Program
Offered by HUD, this program provides significant discounts on homes in revitalization areas for eligible teachers, law enforcement officers, firefighters, and EMTs.
Employer-Assisted Housing Programs
Some employers offer homebuying assistance as an employee benefit, particularly for workers in high-cost areas — it’s worth asking your HR department if such a program exists.
How to Find Programs in Your Area
Your state’s housing finance agency website is typically the best starting point for a full list of local programs, income limits, and application requirements.
The Bottom Line
Before assuming homeownership is out of reach, it’s worth spending an afternoon researching first-time buyer programs — the savings can be substantial, and many buyers don’t realize how much help is available.