These guides cover buying rather than renting. Start with first-time home buyer programs, then read the guide for your state or loan type.
A HUD home is a house the U.S. Department of Housing and Urban Development took over after a foreclosure on a loan insured by the Federal Housing Administration. HUD sells it as is, by bid, through a registered broker on HUDHomestore.gov. Owner-occupants can bid before investors, and an owner-occupant using FHA financing may qualify for $100 down.
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The Colorado Housing and Finance Authority (CHFA) offers first-time buyer loans through approved lenders, with down payment help of up to $25,000 as either a grant of 3 percent of the loan or a second loan of 4 percent. You need a 620 credit score, a home buyer class and income under your county's limit. Boulder and land trusts add more.
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The Texas Department of Housing and Community Affairs offers first-time buyer mortgages with down payment help of up to 5 percent of the loan, through approved lenders. You need a 620 credit score, a home buyer class and income under your county's limit. Its help is a second mortgage, not a gift.
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A Section 8 voucher can help pay a mortgage, but only through local housing offices (called housing authorities) that offer it. Most buyers must be first-time buyers with steady work, finish home buyer counseling and buy a home that passes two inspections. Help lasts up to 15 years, or 10 with a shorter mortgage, unless the family is elderly or disabled.
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New York's main first-time buyer help comes from SONYMA, the State of New York Mortgage Agency, which offers fixed-rate loans and down payment loans through participating lenders. Income and price limits depend on the county. Cities, counties, a federal home loan bank and federal loans add more, and a few below-market homes sell by lottery.
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The Michigan State Housing Development Authority (MSHDA), the state housing agency, offers the MI Home Loan, with a 640 credit score minimum, county income limits and a $566,355 price limit. Its MI 10K Down Payment Assistance loan gives up to $10,000, interest free, and needs a home buyer class. Detroit adds a grant of up to $25,000.
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Florida Housing Finance Corporation, the state housing agency, offers first-time buyer mortgages and down payment help through approved lenders, with a 640 minimum credit score and county income and price limits. Most of the help is a second mortgage, not a gift. Counties add their own programs, and rules and open dates change.
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First-time buyer help comes in four kinds: loans backed by the Federal Housing Administration, Veterans Affairs and the Department of Agriculture; state housing agency mortgages with down payment help; city, county and nonprofit programs; and a tax credit. No federal grant is open to every buyer, and each layer has its own income limits.
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An FHA (Federal Housing Administration) loan is insured by a federal agency and allows lower credit scores and a 3.5 percent down payment. A conventional loan has no government program behind it and often costs less for buyers with good credit. FHA mortgage insurance usually lasts longer, and conventional mortgage insurance can be canceled. Compare quotes for both.
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An FHA loan is a mortgage insured by the Federal Housing Administration, part of HUD, the federal housing department. With a credit score of 580 or higher you can put down 3.5 percent. With a score of 500 to 579 you need 10 percent. You also need steady income, an approved home and mortgage insurance.
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Affordable homes for sale are sold below market price by a city, a nonprofit or a developer to buyers under an income limit, often 80 percent to 120 percent of the area median income. Most are first come, first served or chosen by lottery. Expect a home buyer class, a mortgage pre-approval, a down payment and a limit on your sale price later.
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