State First-Time Homebuyer Programs

As you're leisurely browsing through Zillow in your free time, you might find yourself wondering if owning a home is within reach. Luckily, your state's first-time homebuyer program could be the key to making your homeownership dreams a reality. These programs offer assistance with down payments, closing costs, and competitive interest rates to help you take that first step towards owning your own home.

Typical eligibility criteria for these programs include requirements such as not owning property in the past three years, using the home as your primary residence, and meeting income and credit score requirements. To help you navigate through the various options available, here's a rundown of some of the major first-time homebuyer programs in every state:

Alabama Step Up

The Step Up homeownership program in Alabama provides assistance of 4% of the sales price (capped at $10,000) on FHA, VA, and conventional loans approved by the state housing finance authority (HFA). Eligibility requirements include an annual income at or below $130,600, a debt-to-income ratio of 45% or lower, and a credit score of 640 or higher. Applicants must also complete a homeownership education course to qualify for the program.

Alaska First Home Limited

The First Home Limited program in Alaska is designed to assist first-time homebuyers who have not owned a primary residence in the past three years. The program offers assistance for down payments and closing costs in targeted areas identified by HUD. Income limits and acquisition costs vary based on location. Targeted areas can be identified through a Census Bureau form.

Arizona HOME+PLUS

Administered by the Arizona Industrial Development Authority, the HOME+PLUS Home Buyer Down Payment Assistance Program offers a 30-year fixed-rate mortgage along with up to 5% down payment assistance for borrowers who are struggling to save for a down payment. Eligibility requirements include an annual income of less than $122,785, a credit score of at least 640, and completion of a homebuyer education course.