Written and reviewed by Jack Gladden, Senior Loan Officer, NMLS #1470164
Updated · 7-minute read · How these guides are written
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First-time buyers in brief
- Who counts
- Usually anyone who hasn’t owned and lived in a home in the past three years, so many repeat buyers qualify.
- Low down payments
- VA and USDA can need nothing down; conventional from 3% for qualifying buyers; FHA from 3.5%.
- Assistance
- State housing agencies offer help with the down payment and closing costs, usually as a deferred or forgivable second loan.
- Common conditions
- Income and price limits by county, a primary home, and a homebuyer education course.
- Closing costs
- Plan for closing costs as well as the down payment; sellers and assistance programs can cover some of them.
- Where
- California, Arizona, Florida and Ohio, including each state’s housing agency programs.
Loans with low down payments.
| Loan | Minimum down payment | Good to know |
|---|---|---|
| VA | None with full entitlement | For eligible veterans and service members; see VA loans |
| USDA | None | Eligible rural and suburban areas, income limits; see USDA loans |
| Conventional | From 3% for qualifying buyers | Mortgage insurance ends at 78–80% of the value; see conventional |
| FHA | 3.5% with a 580+ credit score | Flexible credit; see FHA loans |
On a $400,000 home, that is $12,000 at 3% down or $14,000 at 3.5%, before closing costs. Assistance programs can cover some or all of it.
Not sure which loan fits?
Tell me your price range, savings, income and credit range. I’ll show you the loans and assistance you qualify for, side by side.
Down payment help in my four states.
- California (CalHFA)
- MyHome: a deferred-payment loan of up to 3.5% of the price with an FHA first mortgage, or 3% with conventional. Dream For All: up to 20% of the price, at most $150,000, as a shared-appreciation loan for first-generation buyers, awarded by drawing; the 2026 round closed March 16, 2026.
- Arizona (Arizona IDA)
- Home Plus: up to 4% for down payment and closing costs, statewide and year-round, with forgivable and non-forgivable options.
- Florida (Florida Housing)
- FL Assist: up to $10,000 as a 0% deferred second mortgage. HFA Preferred: 3–5% of the loan, forgiven over five years. Hometown Heroes: up to 5% of the loan ($10,000–$35,000) for eligible full-time workers such as teachers, health care workers and first responders.
- Ohio (OHFA)
- Down payment assistance of 3% with conventional loans or 3.5% with FHA, VA and USDA, plus Grants for Grads, Ohio Heroes and a mortgage tax credit.
Each program has income and price limits by county, and most require homebuyer education. Many cities and counties run their own programs too. Programs change and can run out of funds, so I check what’s open when you’re ready.
How assistance is paid back, or not.
| Type | How it works |
|---|---|
| Forgivable | A second loan forgiven over time if you stay, such as Florida’s HFA Preferred over five years. |
| Deferred | No payments; repaid when you sell, refinance or pay off the first mortgage, such as CalHFA MyHome or FL Assist. |
| Shared appreciation | Repaid with a share of the home’s gain in value when you sell or refinance, such as Dream For All. |
| Grant | Never repaid; less common and often local. |
Your steps to buying.
Check your credit and savings
Know your score and what you can put toward the down payment, closing costs and a cushion.
Get pre-approved
Your price range in writing, with the loan and assistance that fit.
Take homebuyer education
Often required for assistance, and useful anyway.
Make an offer and close
Inspection, appraisal, final approval and your keys.
Mistakes to avoid.
- Forgetting closing costs. Budget for them alongside the down payment.
- New debt before closing. A car loan or new card can change your approval.
- Missing assistance. Ask before you sign a contract; some programs must be in place early.
- Draining your savings. Keep a cushion for repairs after you move in.
How we get started.
Tell me your plan
Where you want to buy, your price range, savings, income and credit.
I match loans and programs
Including state and local assistance you qualify for.
Pre-approval
So you can shop and make offers with confidence.
To the closing table
I keep you and your agent updated at every step.
First-time buyers, answered plainly.
Which loan is best for first-time buyers?
It depends on your credit, savings and where you buy: VA or USDA for no down payment if you’re eligible, conventional with good credit, FHA with lower scores. I compare them for you.
How much down payment do I need for a $400,000 house?
As little as $12,000 (3%) or $14,000 (3.5%), and nothing with VA or USDA if you qualify, plus closing costs. Assistance programs can help with both.
Can I afford a $300,000 house on a $50,000 salary?
Possibly. Lenders compare your monthly debts, including the new payment with taxes and insurance, to your gross income of about $4,167 a month; most programs allow 43–50%. Taxes, insurance, your other debts and the down payment decide it, and assistance can help. I’ll run it for you.
Is California giving away $150,000 to first-time buyers?
That’s CalHFA’s Dream For All: up to 20% of the price, at most $150,000, as a loan repaid with a share of the home’s appreciation, for first-generation buyers selected by drawing. The 2026 round closed in March.
What is the $35,000 down payment assistance in Florida?
Florida’s Hometown Heroes program: up to 5% of the loan, from $10,000 to $35,000, as a deferred second mortgage for eligible full-time workers.
Do I have to be a first-time buyer to get down payment assistance?
For most assistance, yes, but first-time usually means you haven’t owned and lived in a home for the past three years. Many low-down-payment loans don’t require it at all.
How hard is it to qualify as a first-time buyer?
With steady income, a manageable level of debt and credit that fits the program, most buyers qualify; assistance programs add income and price limits.
Can family help with my down payment?
Yes, usually as a gift with a signed gift letter and a record of the transfer. A loan from family is harder: many programs won’t accept unsecured borrowed money for the down payment, and a loan counts as debt. Family loans of $100,000 or less also get special interest rules for tax purposes; ask a tax professional.
What is the 3-7-3 rule?
Federal disclosure timing: your lender sends a Loan Estimate within 3 business days of your application, you can’t close until 7 business days after it’s delivered, and you must receive the Closing Disclosure at least 3 business days before closing.
Is there a $20,000 home grant in Ohio?
Grants of that size usually come from a city, county or lender program rather than one statewide grant. Statewide, the Ohio Housing Finance Agency offers down payment assistance. Amounts and income limits change, so I check which programs are open in your county.
What is San Francisco’s down payment assistance program?
San Francisco’s Downpayment Assistance Loan Program (DALP) lends first-time buyers a large share of the price, up to its program limit, as a deferred loan repaid when you sell or refinance, with income limits and a lottery. Check the city’s housing office (MOHCD) for current limits; I can pair it with your first mortgage.
What is the $100,000 loophole for family loans?
A federal tax rule for loans between family members. Normally the IRS treats a low- or no-interest family loan as if market interest were charged. When the loans between you total $100,000 or less, the interest it counts is capped at the borrower’s net investment income for the year, and treated as zero if that income is $1,000 or less, unless avoiding tax is a main purpose. For a mortgage, a lender counts a family loan as debt; a gift with a gift letter is treated differently. Talk to a CPA before setting one up.
What is the Welcome Home grant?
A grant from the Federal Home Loan Bank of Cincinnati, up to $20,000 in 2026, toward the down payment and closing costs in Ohio, Kentucky and Tennessee. Household income must be at or below 80% of the local limit, you put in at least $500 of your own, and it’s used through a bank that is a member of the Federal Home Loan Bank. Funds open each spring and go first come, first served; the 2026 round is closed.
FHA
Conventional
VA
USDA