Buying your first home doesn't mean scraping together 20% down — several programs exist specifically because that old rule keeps qualified buyers out unnecessarily. Here's what's actually available.
Do You Actually Count as "First-Time"?
HUD's definition is broader than it sounds: you qualify as a first-time buyer if you haven't owned a primary residence in the past three years — even if you owned a home well before that. If you're married, only one spouse needs to meet that test for the household to qualify.
The Real Down Payment Options
| Program | Down Payment | Notes |
|---|---|---|
| FHA | 3.5% | Credit score around 580+ typically needed for the lowest down payment tier |
| Conventional 97 | 3% | Requires at least one borrower to be a first-time buyer |
| VA | 0% | Eligible active-duty, veteran, or qualifying spouse |
| USDA | 0% | Eligible rural and some suburban areas; income limits apply |
Down Payment Assistance Exists — and It's Widely Underused
As of recent counts, there are over 2,600 down payment assistance programs active across the U.S., averaging around $18,000 in benefit. These are run by states, cities, and nonprofits, and many go unclaimed simply because buyers don't know to ask their lender about local programs before assuming they need the full down payment saved themselves.
What to Bring to the Conversation
- Your rough timeline — some assistance programs have application windows or funding caps
- Whether you've owned a home in the last 3 years (for first-time-buyer program eligibility)
- Basic income and credit range, so a lender can point you to the programs you actually qualify for
Sources: HUD first-time homebuyer definition guidance, and published 2026 program minimums for FHA, Conventional 97, VA, and USDA loans.
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