First-Time Home Buyer Programs in 2026: State and Federal Options
Buying your first home in 2026 is challenging, but numerous programs help first-time buyers with lower down payments, reduced rates, and financial assistance.
FHA Loans
As little as 3.5% down with a 580+ credit score. More flexible qualification criteria, ideal for limited savings or less-than-perfect credit.
Conventional 97 and HomeReady
Fannie Mae and Freddie Mac offer 3% down conventional loans. HomeReady counts roommate income and offers reduced mortgage insurance.
VA Loans for Veterans
Zero down payment, no PMI, competitive rates. Available to veterans, active duty, and eligible surviving spouses. Consistently rated the best mortgage product.
State Down Payment Assistance
Most states offer $5,000 to $25,000 in grants or forgivable loans. Check your state housing finance agency for programs and eligibility.
Tax Benefits
Withdraw up to $10,000 from a traditional IRA penalty-free. Mortgage interest is deductible. Some states offer additional first-time buyer credits.
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