Your State May Help Pay for Your First Home

There may be money to help you buy a home

Saving for a down payment is one of the hardest parts of buying a first home. Many people give up because they think they can never save enough.

Here is something a lot of buyers do not know: every state has a housing finance agency, and most of them offer down payment assistance for first-time buyers. This help can come as a grant, a loan, or a second mortgage with easy terms.

This is real money to help you buy a home, and checking if you qualify does not cost anything.

Who these programs are for

State programs are usually aimed at first-time homebuyers, though the rules vary from state to state. Many states count you as a first-time buyer if you have not owned a home in the past few years.

Most programs also set income limits and may require you to buy a home under a certain price. Some ask you to take a short homebuyer education class before you close.

The exact rules, dollar amounts, and requirements depend on your state. That is why the first step is finding your own state's program.

What the help can look like

Down payment assistance is money put toward your down payment or closing costs, so you need less cash up front. It works alongside a regular home loan.

In some states, the help is a grant you never repay. In others, it is a loan that can be forgiven over time or paid back later. Every state designs its program differently.

Because the details change by state, do not rely on numbers you hear from a friend in another state. Look up your own state's official program so you know exactly what is offered.

Watch out for paid middlemen

State and federal housing programs are free to apply for. You do not need to pay a company to find them for you or to fill out your application.

If someone charges you a fee or promises to guarantee approval, be careful. The official path costs nothing, and no one can promise you will qualify.

The safest place to start is HUD, the U.S. Department of Housing and Urban Development, which lists homebuying programs by state.

Frequently asked questions

Do I have to pay to find down payment help?

No. State and federal housing programs are free to apply for. Start at HUD's website, which links to your state's agency at no cost.

Am I a first-time buyer if I owned a home years ago?

Maybe. Many programs count you as a first-time buyer if you have not owned a home in the past few years. Check your state's exact rule.

Is the help a grant or a loan?

It depends on your state. Some offer grants you never repay, others offer loans that may be forgiven or paid back later. Read your state's program details.

Where do I actually start?

Go to HUD's buying a home page, pick your state, and find your state housing finance agency. From there you can see the rules and apply for free.