First Time Home Buyer Government Programs in USA (Guide)

Having an own house is a dream of every person. It does not matter how your financial status is or you belong to a family that has low-income. Many cases have been seen that low-income families are facing financial problems while thinking to have an own house. Low-income families have a limited budget but such families do not give up with their dreams. Getting a new house is a big investment and you may face many financial problems at the end of the process, or in the middle stage. Every low-income family is trying to take this big initiative so that they can have their own house. 

first time home buyer government programs

Government authorities have taken several necessary steps that every family can fulfill their dream of having their own house. At the country or state level, it is simple to find some programs so that buyers can get financial help for buying a new house. Do not worry about how your financial history is. The government provides so many options and programs so that you can get loans at the lowest rate. Some government programs require down payment while some government programs do not need down payment.

The government is always taking the necessary steps so that low-income families can also buy a house without having problems. Under first time home buyer government programs, one do not need to pay down payment for loans. A financial loan is the worth dream for house owners. So, do not worry about the financial history of your family because the government is here to give finance to buy your own house. 


Are You Entitled to Avail Loans From Government Programs?

Now, the common question is what types of people will get loans from the government. I talk about federal employees; they will get a loan from the government easily. But, such government programs are also for all people and everyone can take benefits. It does not matter from where or what religion you belong to. Due to the lack of study and research information, the low-income family is not familiar with the government facilities. It is good to know about complete information on government facilities and get house buy loans from various government programs. The first time home buyer scheme of government gives home loans to fulfill the dreams of a low-income family. 

Here is How You Can Search For Information on Loans From a Government Program

On the internet, all information is placed so that everyone can get information about what they want. Google your keyword to get a related answer and all relevant answers will be on the screen. You can choose the answer that is correct according to you. All government departments have their websites. 

Government websites are maintained on the state basis where you are living and will get information about your state. Find out the different housing authorities with the ZIP code of your area. The government department may also guide you to contact the housing authority in your area. Higher authorities in the housing department are present to help you in all possible ways so that your problem can be solved and you will house loans from government facilities. If you did not find state-level authorities helpful, then you should also try to contact the country-level Government authorities. 

Need to Do Some For Fast Eligibility Under Government Programs

After contact with government authorities, you have to convince them that you are interested to buy a house and have many capabilities to return the loan. Get the pre-approval of your house loan and pay the advance payment. After getting pre-approval, you can discuss with a real estate attorney or housing authority with all documents, and the advance payment can be deducted at the closing payment. This advance payment gave confidence to the government officials that you can pay the loans. 

Top 8 First Time Home Buyer Government Program

Low-income family is the first time home buyers who have the financial problem to buy a house. For completing the dream of their own house, the government has several programs. Such programs help the low-income family to buy a house without down payment or with the down payment. Some government programs are listing here so that you know about various government schemes to buy a house.

1. FHA Loan

FHA loan program is one of the best loan programs that provide loans to those who have a bad credit history and not able to pay the large down payment. Down payment depends on the credit score such that is the credit score is about 500 to 579 then the down payment is 10 %. A down payment is lower is your score is up to 580. USA government is providing back support to the Federal Housing Administration.

FHA loan program is mainly used by first home buyers with the lower down payment. When you have a large amount as a loan, then pat it in a long time or may take 15 to 30 years for repayment. A special facility is given to all those from FHA who are working in an organization for least two years.  Front-end debt ration and back-end debt ratio factors are to be considered. Some lenders accept 31 % to 40 % in front end debt ratio while the back-end debt ratio is about 43 %. You will need to pay a loan for 1 to 2 years if you are under bankruptcy case under chapter 7.

2. USDA Loan

USDA is providing loans to the people who do not have their own houses. Family, who own a house already, are not able to get a loan from USDA. The government agency USDA is one of the government programs that provide loans for getting land in the rural area. First time home buyers are eligible for getting loan amount from USDA. One of the biggest conditions is that you should be a moderate-income family instead of a low-income family. You want to know about your income eligibility criteria, and then check it from the United States Department of Agriculture (USDA). USDA loan programs consider two main factors, which are income and credit standards. First home buyers should know about income eligibility criteria so that they can get loan amount from USDA government programs. 

The agriculture department of the US gives an offer to get the loan who are having bad credit and not able to get first time home buyer government programs. Land in the rural area is free from the down payment and no need to pay any type of down payment. It does not matter at all if you are not able to pay the down payment. 

There is a need to pay a guarantee fee and annual fee for the loan amount. The guarantee fee is only 1 percent of the loan amount and the annual fee is 0.33 percent. Pay the annual fee of the loan amount in the monthly installment. 

3. HUD First Time Home Buyers Program

Another option for getting loan amount is HUD (Department of Housing and Urban Development). For getting more information about HUD, contact any of the higher authority of HUD. HUD offers two major programs. One of those is providing help for the down payment and the other offer is for a first-time buyer government program. First time home buyers who are having a low-income can get loans from HUD programs. HUD programs offer different paths in states and countries to make sure that first-time home

4. VA Loan

VA loan is not required to know about credit score as you are having good credit or low credit score. No need to show your credit score in the VA loan process. Even, VA loans do not need knowledge about the FICO credit score. This special loan program is especially available for veterans and their spouses. VA loan program is sponsored by the Department of Veterans Affairs of the United States of America

Military people, who are working as an employee and retired can get the benefits of VA programs. Getting loans from VA loans is too easy as no need to pay down payments if you get a loan for higher amounts. Paying down payment is not a big problem for moderate-income families because they can pay down payment amount. 

5. Good Neighbor Next Door

Good neighbor Next Door loan program, which is made easy ad giving its contribution to the different occupations. One of the specific conditions with this program is that you will get the house where another person is living. Your choice of house is not considerable. People, who are teachers, emergency medical technicians, firefighters, law enforcement officers, and EMT, will get benefits from the good neighbor next door. Teachers will get the space to live where other neighbor teachers are living and firefighters will have to work where their house is situated. 

When you are going to buy a new house, it is necessary to know about every term and condition. Moreover, you have to pay for 50 percent of the amount because it is a discounted amount by HUD. In addition, the buyers of the house can pay half of the amount, and they the amount in cash. And the remaining 50 percent is easy to pay after some time or later because it has no principal interest on the remaining amount. In addition, the important thing is that the buyer can take over the house if they live more than 3 years.

In any case, the buyer does not live in the house for 3 years then the FHA can take action to charge a prorated part of the silent another mortgage.

6. Freddie Mac and Fannie Mae

People who want to buy a new house or to build a new house, this government program helps those people, in providing the loans. And to get the hostage loans, this is one of the laxer terms and conditions. And the DTI is an important topic to get the loan ability. By the way, it is very east to getting loads because of the fewer terms and conditions to follow.

On the other hand, many people are capable of strong credit and have long-term income, but still, they cannot able to play the higher down payment, this program is the best option for them. Because the people who are GSE or are knowing as short, this program is for them by the US government. The one who controls the guidelines for borrow and can get loans from the other hostage market.

 The important thing about this program is that it requires a minimum of 3 percent down payment along with a good credit score of 620. Even more important from this, sometimes, you need to set the ratio up to 50 percent according to the requirement of Fannie Mae.

7. Get direct if you’re a native American

For getting a direct loan, it is easy for the person or the spouse if you are a Native American. If you want to buy a house, want to make some changes in the house, or want to buy a hose, then this Native American Direct loan program helps you to get loads in easy terms. But for this, there are some criteria and you have to be eligible for getting a loan. The criteria are:

  • To fulfill the criteria you have to need a valid VA home loan certificate.
  • The credit standard is a reason to consider.
  • To pay the loan payment when, you are capable in present.
  • To buy a new house, you live in a house where you are under the process of NADL.

There is no need for the down payment, usually, which is a good deal to go. The Native American direct loan has so many offers for the buyers.

Under this loan program, you do not need any private hostage insurance, which can cost you a sum of amount from your pocket. Maybe typical lenders need to have personal hostage insurance.


By giving many benefits, the traditional lenders may ask you a high-interest rate. But in this program, there is no high-interest rate and it is easy to pay. Rather you can pay the interest amount in installment in 30 years, which makes it easy to pay the amount. For buying a new house or make some improvement in the house, it is another option of reusable benefit that is more important. This will make sure that you get more than NADL even in the present you have just one program.

8. 203k Rehab loans

You have to save more money for buying a new house and it is a big decision for you. The cost of a new house is increased and your money does not increase in reality. This is very difficult for anyone to balance between dreams and reality because of the increasing cost. If you are capable to pay the amount in the future then the hostage loan is the best way to finance your house. 203k Rehab loan is the best to finance for repairing your old house or buying a new one. This is best for first time home buyers as such loan programs are extended versions of FHA programs. 

Final Words

The government has many programs as it is providing the best and effective loan programs for first-time house buyers. High down payment or bad credit is not the issue and you will get a loan for your first house. The government has no conditions for a down payment. What you need is to pay off the loans within a given time. 


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