First time buyer programs
Many cities and lenders offer benefits for first time buyers. This guide explains common options and how to combine them to reduce your cash to close.
Common benefits
- Grants Money you do not repay if you meet the program rules.
- Deferred second loans Low or zero interest assistance that may be repaid when you sell or refinance.
- Reduced mortgage insurance Some programs lower MI for qualified buyers.
- Tax credits Certain areas offer recurring credits that lower your tax bill.
Basic eligibility
- First time status Usually no home ownership in the past three years.
- Income and purchase price limits Vary by area and household size.
- Homebuyer education Short course required by many programs.
- Primary residence Programs are for homes you will live in, not investments.
How to stack programs safely
Work with a lender who knows your local options. You may be able to combine a grant, a deferred second, and seller credits. Make sure the total structure meets the rules of your primary loan.