What Financial Aid is Available for First-Time Home Buyers?

(Last Updated On: January 1, 2019)

The high cost and challenges of buying a home for the first time can be frustrating for any first-timer. Factors such as having a specific amount of down payment, combing through the different real estate listings, and knowing your credit card score have to be considered. Since you’re probably getting a lot of advice on how to finance this huge investment, it’s important to know what aid you have available. The following are different financial aid programs available for first-time home buyers.

Federal Housing Administration (FHA)

First-time homebuyers go for this financial aid option a lot because the loan is insured by the government, have low closing costs and the qualifying guidelines are easy to meet. For instance, if you have a credit score of 500 you will make a down payment of 10 percent while those with a credit score of 580 and above make a down payment of 3.5 percent.

Good Neighbor Next Door

Good Neighbor Next Door was started mainly for teachers, but later went ahead to include other specific professions such as a medical emergency technicians, law enforcement officers, and firefighters. The benefit of this program is that you get a 50 percent discount off the home’s price. However, you must live in the selected property for at least three years.


If you have ever thought of owning a home in a rural area, then the US Department of Agriculture home buying program can be ideal for you. While a mortgage insurance is required, with this type of financial aid you do not need a down payment. The loan also covers different types of homes such as condominiums and manufactured homes.

Veterans Loans

You qualify for this kind of home loan if you are a veteran or a surviving spouse of one. While VA loans have a competitive interest rate, you are not required to make a down payment. Also, you can get Adapted Housing Grant that will allow you to go to a real estate company and purchase a home that will cater to specific disability needs.

National Homebuyers Fund

The NHF is ideal for low and moderate-income earners. While it has two different down payment programs, the NHF will give up to 5 percent of the loan amount as a non-repayable grant.

Owning a home for first time is possible because of the different financial aid available to date. By doing research, you can choose a grant or program that will make it possible for you to live in your dream home. Ask your local realtor if they have any advice for first-time home buying and investments.

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