7 Programs That Help First-Time Homebuyers

programs-first-time-homebuyersEver been through the actual process of buying a home? It’s as hard as competing in the Olympics. There are people to deal with, paperwork full of jargon to read and fill, and fees to pay. Reading through the jargon may make you feel like you want to just skip over and sign the papers. That may sound as easy as skiing downhill, but it may ruin your financial future or just make it an uphill task. It will, therefore, be in your best interest to consider the homebuyer programs listed below. They could make your financial future be as you imagined it.


If you have a credit history that is not very firm or it is just your first time to buy a house, this is the program to choose. The Federal Housing Administration guarantee a portion of the mortgage for you. That makes it affordable to most Americans. The FHA backing gets you loans that go as low as 3.5%. Start at the HUD.gov website, they have a list of local FHA lenders.


If you are a service member, a veteran, or surviving source of a military member, the US Department of Veterans can help you buy a home. This program is quite generous and depending on their evaluation, you may not even be required to pay a deposit or to have mortgage insurance. As you would expect, this military program is designed to work more on accuracy, than speed.


usda-loanDo you live in rural America? Well, the US Department of Agriculture assists people in rural America to buy homes. It offers 100% financing through lenders by offering them mortgage guarantees. There are however minimum income qualifications that you need to meet.

Home Upgrade Programs

Do you have more money to spend? If you do, you can have a bigger home. The following programs offer you that option.

I. The Energy Efficient Mortgage program

This program awards you their support by offering you green energy mortgage benefits. All you need to do is improve your home by installing green energy sources. They will then allow your lender to change your loan limits based on energy efficiency improvement. You do not have to make any other financial obligations.

II. HUD 203(k) loans

These loans are for you if you want to improve your home to increase its overall value. They evaluate the improvement you want to make to determine the final value of your house. They then allow you to borrow more funds to make those improvements based on their evaluation of your property. You then make the payment as part of your main mortgage.

Good Neighbor Next Door

This program started as the Teacher Next Door Program. However, it later expanded to include firefighters, medical technicians, and law enforcement officers. That necessitated the change its first name. You will get a 50% discount on account that you commit to living in that house for 36 months. These homes are located in revitalized areas. They are also listed for only seven days in the Good Neighbor Next Door’s website.

Dollar Homes

HUD offers one dollar homes. These homes are acquired by FHA through foreclosures. There are so few of them, and they are listed on their website. We checked them out and found one listed for $17,900. That means you have to be very careful in your search.

Fannie and Freddie

These are government sanctioned companies that offer mortgage with as little as a 3% down payment. Fannie Mae and Freddie Mac work with local lenders to offer incredible rates.

Other Options

You will find more links to more affordable home loans in the Department of Housing and Urban Development website. There are many local and state governments that offer loan assistance to home buyers.

If you are looking for an affordable option to own a home, your solution lies in the above resources. They will give you low interest rates and you may get a bargain if you buy a house closer to where you live. They could even help you have an opening ceremony for your new home.