FHA loans, down payment assistance, and state grant programs that make homeownership more affordable for first-time buyers in 2026.
See Buyer Programs →FHA loans remain the most common entry point for first-time buyers, requiring just 3.5% down with a credit score of 580 or higher (10% down is allowed with scores as low as 500). The average 30-year FHA rate is 6.87% as of September 2026, and FHA loans require mortgage insurance premiums for the life of most loans.
| Program Type | Down Payment | Credit Score | Notes |
|---|---|---|---|
| FHA Loan | 3.5% | 580+ | Most widely used first-time buyer loan |
| Conventional (97% LTV) | 3% | 620+ | No mortgage insurance if 20%+ down later via refi |
| State DPA Grants | Varies (often $0 add'l) | Program-specific | Many are forgivable after a residency period |
| USDA Loan | 0% | 640+ | Eligible rural/suburban areas only |
Most states and many cities run their own down payment assistance (DPA) programs — typically structured as grants, forgivable second loans (forgiven after living in the home 3-10 years), or deferred-payment loans due when you sell or refinance. Programs like NYC's HomeFirst and dozens of state housing finance agency programs can cover a meaningful share of the down payment and closing costs for eligible first-time buyers.
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