What do these programs actually solve?
The wall between most renters and owning isn't the monthly payment — it's the pile of cash needed up front. Every program below attacks that wall from a different side: shrinking the down payment, lowering the rate, or handing you money toward closing. Stack them where allowed, and the wall gets a lot shorter.
What are the federal loan types?
What are the 3%-down conventional programs?
Two look-alike programs from the big mortgage backers, offered through ordinary lenders: HomeReady ↗ (Fannie Mae) and Home Possible ↗ (Freddie Mac). Both allow 3% down for buyers whose income fits local limits (generally up to 80% of the area's median). Under 20% down means PMI (private mortgage insurance — a monthly charge protecting the lender), but these programs keep it manageable, and it can drop off later as equity grows. Ask any lender to price both.
What can your state's housing finance agency do for you?
Every state runs one, and they're chronically overlooked: below-market first mortgages, down-payment assistance, and closing-cost help. California's CalHFA, for example, pairs mortgages with a "silent second" — a deferred loan covering down payment, with no payments due until you sell or refinance. Texas runs "My First Texas Home" with down-payment help and low-rate 30-year loans. Florida's Florida Housing ↗ runs Hometown Heroes — up to $35,000 in down-payment help for Florida's workforce. Your state has its own version.
Two catches, honestly: assistance funds run out (apply early in the year when budgets refresh), and you'll use an agency-approved lender — ask any lender whether they work with your state program; the good ones do.
What about employer, city, and profession programs?
Smaller but real: cities offer assistance to buyers in target neighborhoods; some employers, hospitals, and universities help with down payments; and programs exist for teachers, first responders, and other professions. One HUD program worth knowing: Good Neighbor Next Door ↗ — a 50% discount off the list price of eligible homes in revitalization areas for teachers, law enforcement, firefighters, and EMTs (emergency medical technicians), in exchange for living there three years. Ask your HR department and city housing office — five minutes of asking has been worth thousands of dollars.
How do you work this list without losing your mind?
- 1. Check your state agency first (the HUD directory above) — biggest potential saver.
- 2. Sort your loan type: military → VA. Rural-ish → USDA check. Moderate income → HomeReady/Home Possible vs FHA, priced side by side.
- 3. Then shop lenders — program in hand. Programs set the discount; lenders still compete on the rest. The full mortgage guide covers that shopping process, and the CFPB's (Consumer Financial Protection Bureau) Buying a House tools ↗ are the best neutral companion on the internet.
- 4. Never pay for program "access." Every legitimate program above is free to find and free to apply to through a lender. Paid "grant finders" are selling you this page.
Questions people ask
Do you count as first-time if you owned a home before?
Often, yes. Many programs count you as a first-time buyer if you haven't owned a home in the last three years.
Which loans allow little or no down payment?
VA loans for military families, where nearly 90% of VA-backed loans are made with no down payment, and USDA loans with 100% financing in eligible rural areas. FHA, HomeReady, and Home Possible allow small down payments.
Where do you find your state's homebuyer programs?
HUD keeps a free state-by-state directory of homebuying programs. Your state's housing finance agency is often the single biggest saver and the least advertised.
Should you pay someone for access to these programs?
No. Every legitimate program is free to find and free to apply to through a lender. Paid "grant finders" are selling you a list you can get free.