Programs Available to Help First Time Home Buyers

Home Purchased with VA Lending Program.
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For many people, buying a home will be the biggest investment we will ever make.  And if you are eager to buy a home, but have found that it’s just too much information to sort through, then look no further.   Here are a few programs available to first time home buyers that will help save you hours of time and tons of money in the home buying process.   Many of these programs go over looked and honestly, many real estate agents aren’t lending experts.  So, they usually have a list of lenders that they’ll refer home buyers to and if the lender isn’t aware of any of the programs below, you as a home buyer may never be introduced to them.  When you are buying a home, it’s very important to shop for a lender that will assist you in meeting your needs.   So, check out the programs below for help in your process of buying a home.

Home Purchased with VA Lending Program.

Fannie and Freddie Mac

Fannie Mae and Freddie Mac are the engines that power the home loan machine. These government-sanctioned companies work with local lenders to offer mortgage options. For instance, Freddie Mac launched Home Possible AdvantageSM, a new affordable mortgage with a down payment option as low as 3%. Visit the Freddie Mac Website for information on how to qualify.    Visit the Fannie Mae Website.

Good Neighbor Next Door or Teacher Next Door Program

This initiative expanded to include law enforcement, firefighters and emergency medical technicians and is a HUD-sponsored program, it allows 50% discounts on the list price of homes located in revitalization areas.   To use this program,  you just have to commit to living in the property for at least 36 months. These homes are listed — for just seven days — on the Good Neighbor Next Door sales website.

State Programs

Before you buy a home, which may be one of the biggest investments you’ll ever make, it may be of help it you were to contact your state housing finance agency or state HUD office for information about special programs administered by your state and properties available in your area.

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In addition to all the programs, HUD funds approved housing counseling agencies throughout the country that can provide advice on many housing-related topics, including buying a home. Use this map to find one in your state.


The U.S. Department of Veterans Affairs helps service members, veterans and surviving spouses buy homes. The program is especially generous, often requiring no down payment or mortgage insurance. But like a lot of military operations, the approval track is built for accuracy, not speed.


For many first-time homebuyers who have a tarnished credit history, this is the go-to program for many Americans.  The Federal Housing Administration guarantees a portion of home loans, which frees lenders to broaden their acceptance standards. With FHA backing, borrowers can qualify for loans with as little as 3.5% down.

FHA loans do have an up-front and ongoing additional cost built in: mortgage insurance premiums. This protects the lender’s stake in the loan if you default. The FHA, or Federal Housing Administration, provides mortgage insurance on loans made by FHA-approved lenders. FHA insures these loans on single family and multi-family homes in the United States and its territories. It is the largest insurer of residential mortgages in the world, insuring tens of millions of properties since 1934 when it was created. Learn more aboutFHA loan requirements and guidelines.

You can search a list of FHA lenders near you at


The U.S. Department of Agriculture has a homebuyers assistance program.  The program targets rural areas and allows 100% financing by offering lenders mortgage guarantees. There are income limitations, which vary by region.

Use these tools below to prepare you for your first home purchase:

Home affordability calculator:…

Check your credit report:

Check your credit score:

Watch 5 Tips for First Time Home Buyers below via LaTisha Styles:

Source: NerdWallet

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