Every state in the U.S. has programs specifically designed to help first-time home buyers get into homes. These programs — administered through state Housing Finance Agencies (HFAs) — offer below-market mortgage rates, down payment assistance, closing cost help, and tax credits. Millions of eligible buyers never take advantage simply because they do not know these programs exist.
How State First-Time Buyer Programs Work
State HFA programs are accessed through approved private lenders — banks, credit unions, and mortgage companies that have applied to participate. You do not apply directly through the state. Instead, you find an approved lender, apply for a first mortgage through them, and layer the HFA assistance on top.
Most programs require:
- First-time buyer status (typically defined as not owning a home in the past 3 years)
- Income at or below area median income (AMI) limits — often 80-120% AMI
- Purchase price within program limits
- Completion of a HUD-approved homebuyer education course
- Primary residence requirement
Key States: Program Highlights
California — CalHFA
The California Housing Finance Agency offers several programs:
- MyHome Assistance Program: Up to 3.5% of purchase price (or appraised value, whichever is lower) as a deferred-payment second mortgage for down payment or closing costs
- CalHFA Conventional and FHA loans: Below-market first mortgage rates
- Dream For All: Shared appreciation program providing up to 20% down payment assistance (availability limited by funding)
Income limits vary by county and household size. High-cost counties like Los Angeles and the Bay Area have higher limits.
Texas — TDHCA My First Texas Home
- 30-year fixed-rate mortgages at below-market rates
- Up to 5% of the loan amount in down payment and/or closing cost assistance
- Available for FHA, VA, and USDA loans
- Income and purchase price limits apply (vary by county)
- My Choice Texas Home program available for repeat buyers who meet income limits
Florida — Florida Housing Finance Corporation
- Florida First: Below-market 30-year FHA, VA, or USDA mortgage
- HFA Preferred: Conventional loan with reduced mortgage insurance costs
- Florida Assist: Up to $10,000 as a 0% interest, deferred second mortgage for down payment and closing costs
- Florida HLP: Up to $10,000 as a 3% interest, 10-year amortizing second mortgage
New York — SONYMA
The State of New York Mortgage Agency offers:
- Conventional Plus Program: 30-year fixed conventional mortgages with down payment assistance
- Down Payment Assistance Loan: Up to 3% of the purchase price or $15,000 (whichever is less) as a 0% interest deferred loan
- Achieving the Dream: Lower-income buyers can access even lower rates
Illinois — IHDA
The Illinois Housing Development Authority offers multiple programs:
- IHDAccess Forgivable: 4% of purchase price (up to $6,000) as a forgivable loan for down payment and closing costs; forgiven monthly over 10 years
- IHDAccess Deferred: 5% of purchase price (up to $7,500) as a 0% deferred loan
- IHDAccess Repayable: 10% of purchase price (up to $10,000) as a 0% 10-year repayable loan
Georgia — Georgia Dream
- Standard Program: $10,000 for down payment and closing costs
- Pen, PEP, Choice: $12,500 for public protectors, educators, healthcare workers, and individuals or families with a household member with a disability
- 30-year fixed mortgage rates below market
- Must complete 8 hours of homebuyer education
Ohio — OHFA
Ohio Housing Finance Agency provides:
- 30-year fixed-rate mortgages with competitive interest rates
- Down payment assistance of 2.5% or 5% of the purchase price
- Grants available for certain professions (teachers, healthcare workers, veterans)
- OHFA Ohio Heroes program for public servants
Pennsylvania — PHFA
- HOMEstead: $10,000 or more in down payment and closing cost assistance
- Keystone Advantage: 4% of purchase price as a second mortgage for down payment and closing costs
- Below-market rate first mortgages
- Refinance programs also available
Washington — WSHFC
- Home Advantage program: first mortgage plus down payment assistance of up to 4% of loan amount
- House Key Opportunity: program for lower-income buyers with higher assistance amounts
- Down payment assistance provided as 0%, deferred second mortgage
Colorado — CHFA
- Down payment assistance of up to $25,000 in some programs
- SmartConnect and HomeAccess programs
- Below-market fixed rates for first mortgages
How to Find Your State’s Programs
- Visit your state’s HFA website (search “[your state] housing finance agency”)
- Look for “first-time homebuyer” or “homeownership” sections
- Find the list of participating lenders
- Complete any required homebuyer education (often available online at Framework or eHome America)
- Apply through an approved lender
Mortgage Credit Certificates (MCC)
Many states offer Mortgage Credit Certificates alongside or separate from their mortgage programs. An MCC converts a portion of your annual mortgage interest into a dollar-for-dollar federal tax credit — typically 20-25% of annual interest. On $20,000 in interest at a 20% MCC rate, you receive a $4,000 tax credit annually for the life of the loan.
MCCs are issued at purchase and must be obtained through an approved lender at the time of the transaction — they cannot be applied retroactively. Ask about MCC availability when you contact your state’s HFA or approved lenders.
Local Programs
Beyond state programs, many cities and counties offer their own assistance:
- City-administered down payment grants
- Employer-assisted housing programs at hospitals, universities, and large employers
- Community land trusts offering below-market homes
- Neighborhood Stabilization Program properties
A HUD-approved housing counselor can identify all programs available in your specific area — including local ones that may not appear in state-level program lists. Find a counselor at HUD.gov.
Bottom Line
First-time buyer programs exist in every state and can provide thousands of dollars in down payment help, lower mortgage rates, and tax savings. The biggest mistake is assuming you do not qualify — income limits are often higher than buyers expect, especially in high-cost areas. Research your state’s programs before applying for any mortgage and ask lenders specifically whether they participate in state HFA programs.