Down payment assistance programs for first time home buyers

Programs to Help You Pay for a Home

The Department of Housing and Urban Development (HUD) and other federal agencies offer a variety of programs that may be able to help you purchase a home if you qualify for assistance:

FHA Loans for First-Time Homebuyers

• The Federal Housing Administration (FHA), part of HUD, insures mortgages, making it easier for potential homeowners to afford loans. FHA also offers HUD homes for sale. Learn more about FHA Loans.

Homeownership Vouchers

• The program provides public housing residents and others with a low income who are first-time homebuyers with subsidies to use toward buying a home. For additional information about this program, contact your local Public Housing Agency (PHA).

Indian Home Loan Guarantee Program

• The program, also known as Section 184 is a home mortgage specifically designed for American Indian and Alaska Native families, Alaska Villages, Tribes, or Tribally Designated Housing Entities.

Programs for Service Members and Veterans

• The Department of Veterans Affairs (VA) offers home loan programs designed to help veterans and active duty service members.
• Learn about the Native American Direct Loan (NADL) program, also from the VA. 

Programs for Rural Residents

• The Department of Agriculture (USDA) Local Rural Development (RD) offices can provide information on single-family housing programs for rural residents.

State Programs

• 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.

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.

Foreclosure Properties 

If you are interested in a foreclosure-related property, reach out to a licensed real estate agent who will be able to advise you on when the property may be available for purchase.

FHA Loans and HUD Homes

If you’re a homebuyer, the Department of Housing and Urban Development (HUD) has two programs that may help make the process more affordable.

FHA Loans 

The Federal Housing Administration (FHA) manages the FHA loans program. This may be a good mortgage choice if you’re a first-time buyer because the requirements are not as strict as for other loans. The down payment and closing costs are low.

Am I eligible for an FHA loan? 

• You must qualify for a  loan with an FHA-approved lender. In general, your credit score doesn't need to be high. 
• The price of the home you want to insure must be within the loan limit for an FHA home in its location. 

How do I apply for an FHA loan? 

The FHA doesn't lend money to people. It insures mortgage loans from FHA-approved lenders against default. To apply for an FHA-insured loan, you will need to use an FHA-approved lender. Search for an FHA-approved lender here. 

• Find FHA loan products for manufactured (mobile) homes. 

• Learn more about FHA loans. 

How do I complain about an FHA loan? 

If you have a complaint about an FHA loan program, contact the FHA Resource Center. 

HUD Homes 

When homeowners default on their FHA loan, HUD takes ownership of the property, because HUD oversees the FHA loan program. These properties are called either HUD homes or HUD real estate owned (REO) property. 

Am I eligible to buy a HUD home?

Your qualifications to buy a HUD home depend on your credit score, ability to get a mortgage, and the amount of your cash down payment. You can also use an FHA-insured mortgage to buy a HUD home.  

How do I apply for a HUD home?

Use the HUDHomestore to find listings of HUD real estate owned (REO) properties for sale. Click on the agent tab to find contact information to learn more about the property. 

Where do I call for extra help about a HUD home?

If you have a question or need more information about FHA loans or HUD homes, you can:

• Check their list of frequently asked questions.

• Email or call the FHA Resource Center.

Homeowner Voucher Program

If you have a low income and need help buying your first home, the Department of Housing and Urban Development (HUD) Housing Choice Voucher homeownership program may be able to help. 

Housing Choice Voucher Eligibility

You must: 

• Be a first-time buyer as defined by HUD

• Meet a minimum income requirement set by the local public housing authority (PHA)

• Have at least one adult working full-time and for at least one year

• Complete homeownership and housing counseling program

How to Apply for a Housing Choice Voucher

Contact your local PHA. If it does not offer a homeownership program, you can contact HUD’s PIH Customer Service Center.

How to File a Housing-Related Complaint

• If a lender is discriminating against you, submit a complaint to the Consumer Financial Protection Bureau.

• You can also file a housing discrimination complaint with HUD. 

• Learn more about housing-related discrimination and how to complain about it. 

More Information About Housing Choice Vouchers

• If you have sold your home, you will not be able to use the program for your next purchase. Housing Choice Vouchers are for first-time buyers.

• You are not required to work with a specific real estate agent or any specific lender when getting a home loan.