The down payment is the biggest hurdle for many first-time buyers — but a range of programs exist to lower that barrier. Knowing your options can move your timeline up by years.
Low-Down-Payment Loans
Several loan types allow small down payments: FHA loans (as little as 3.5%), some conventional programs (as low as 3%), and VA/USDA loans (potentially 0% for eligible borrowers). Each has its own rules and costs.
Down-Payment Assistance (DPA)
Many states, counties, and cities offer DPA programs — grants or low-interest second loans that help cover your down payment and sometimes closing costs. Some are forgivable if you stay in the home long enough.
See what first-time buyer loan options may be available to you:
Explore My OptionsFirst-Time Buyer Definition
You may qualify as a "first-time buyer" even if you've owned before — many programs define it as not having owned a home in the past three years. It's worth checking; you might be eligible without realizing it.
Tips for First-Time Buyers
- Get pre-approved early so you know your budget.
- Research state and local programs — they're often underused.
- Budget for closing costs, not just the down payment.
- Don't stretch to your maximum approval; leave room in your budget.