First-Time Homebuyer Programs: Your Guide to Affordable Homeownership

First Time Homebuyer ProgramBuying your first home is one of life’s biggest milestones—and one of the most common sources of stress for new buyers. The excitement of house hunting often gets overshadowed by worries about saving for a down payment, finding the right mortgage, and managing closing costs. Fortunately, there are dedicated first-time homebuyer programs designed to help you overcome these hurdles and make the path to homeownership clearer and more affordable.

Understanding First-Time Homebuyer Programs

First-time homebuyer programs often provide financial assistance and flexible loan options for buyers who haven’t owned a primary residence in recent years. These programs can help buyers with limited savings or challenging credit histories.

Key Features and Benefits:

  • Lower down payments

  • Help with closing costs (many offer grants or assistance loans)

  • Flexible credit requirements (some programs allow scores as low as 580)

  • Homebuyer education courses to boost financial literacy

  • Eligibility criteria such as income and home price limits

In most cases, a first-time homebuyer is someone who hasn’t owned a home in three years.

These programs can level the playing field—giving first-timers a true chance in the market.

Meet with an F&M mortgage advisor to explore available options.

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Steps to Determine Eligibility and Apply

  1. Assess Your Financial Readiness
  • Check your credit score (620+ is preferred for most programs)

  • Confirm steady income and manageable debt

  • Budget for mortgage, taxes, insurance, and maintenance

  1. Research Programs & Eligibility
  • Review the financial offerings

  • Note eligibility details

  1. Complete a Homebuyer Education Course
  • Often required and always recommended

  • Covers budgeting, loans, closing, and home maintenance

  1. Gather Documentation
  • Pay stubs, W-2s, or tax returns

  • Bank statements

  • ID and Social Security card

  • Debt records

  • Homebuyer education certificate (if needed)

  1. Get Pre-Approved and Apply
  • Meet with an F&M Bank mortgage expert

  • Discuss which programs you want to layer

  • Get a pre-approval letter to strengthen your offer

Tips for a Successful Homebuying Experience

  • Work on Credit Early: Improving your score boosts your options and savings

  • Budget for More Than the Mortgage: Account for taxes, insurance, and repairs

  • Get Pre-Approved First: Know your budget and strengthen your offer

  • Use Expert Guidance: Rely on real estate agents, mortgage advisors, and housing counselors

  • Stay Focused on Your Goal: The right home and program are worth waiting for

Turning the Key to Homeownership

First-time homebuyer programs can make homeownership more accessible by reducing upfront costs and securing affordable financing.

Work with professionals, educate yourself, and take each step confidently. The keys to your first home are within reach.

Speak With a Mortgage Expert

Get answers and a plan that fits your goals.
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Frequently Asked Questions

What qualifies as a first-time homebuyer?
A first-time homebuyer is typically someone who hasn’t owned a primary residence in the past three years. This definition can vary slightly by program.

Are there income limits for assistance programs?
Yes, many programs set income limits based on local median income. However, conventional mortgages may not have the same restrictions.

Can I combine different types of homebuyer assistance?
In many cases, yes. You may be able to combine a loan with grants or tax credits, but it depends on program rules and lender guidelines.

Do I have to repay down payment assistance?
Some assistance is structured as a grant and may be forgiven after a certain period, while others are repayable if you sell or refinance too soon.

What credit score do I need to qualify?
Most conventional loan programs require a minimum credit score around 620. FHA loans may allow lower scores with larger down payments.

How long does the mortgage approval process take?
With all documents in order, pre-approval can take just a few days. Closing may take 30–45 days, though it can vary with specific program requirements.

Will student loans or other debt affect my eligibility?
Yes, lenders assess your debt-to-income ratio, including student loans. Generally, a ratio under 38% is preferred.

Can I buy a condo or duplex as a first-time buyer?
Yes, many programs support condo or small multi-unit purchases if you plan to live in one of the units.

What if I move or refinance after getting a grant?
Some programs require you to repay a portion of the grant if you move or refinance before meeting the retention requirement.