Best First-Time Home Buyer Programs 2026

by Anonymous

First-time buyer programs reduce barriers through down payment assistance, reduced mortgage insurance, and below-market interest rates. FHA loans remain the entry point for most buyers with 3.5% down, while state-specific programs can stack additional assistance. Income limits and property value caps apply to most programs, and eligibility varies significantly by location.

FHA Loan

3.5%
minimum down payment
580 (3.5% down)
credit score minimum
Required (life of loan)
mortgage insurance
None
income limit
Lower credit score buyers
best for

Conventional 97

3%
minimum down payment
620
credit score minimum
Removable at 20% equity
mortgage insurance
80% AMI (some areas 100%)
income limit
Good credit, PMI removal
best for

USDA Loan

0%
minimum down payment
640 (recommended)
credit score minimum
Guarantee fee (lower than FHA)
mortgage insurance
115% of area median
income limit
Rural and suburban buyers
best for

VA Loan

0%
minimum down payment
No VA minimum (lenders vary)
credit score minimum
None (funding fee instead)
mortgage insurance
None
income limit
Veterans and active military
best for

Like this comparison? Make it your own.

Sign up to use as template