Six paths into your first home — most starting at 0–3.5% down. Land Home is a master servicer for state HFA programs, so we know which DPA stacks on which loan in your state. That's the difference.
What brings you here today?
Most first-time buyers think they have one option. You have at least three. The right one depends on your credit, income, area, and savings — not on what your friend used.
The default first-time path. 580+ FICO, 3.5% down. Stacks with state DPA. Most flexible on credit and DTI. Lifetime MIP is the trade — you'll likely refinance to Conventional once you have 20% equity.
Fannie Mae's first-time program. 620+ FICO, 3% down. No income cap. PMI cancels at 80% LTV. No upfront mortgage insurance fee. Better long-term than FHA for buyers with 700+ credit.
Fannie's & Freddie's programs for buyers at ≤80% AMI. 620+ FICO, 3% down, reduced PMI rate vs standard Conv. Boarder/family income can count toward qualification. Best Conventional path for moderate-income.
Best deal in America. $0 down, 620+ FICO, no monthly MI ever. Funding fee 2.15% (waived for 10%+ disability rating). Need a Certificate of Eligibility (we pull it for you).
$0 down, 640+ FICO, 115% AMI cap. Eligible suburbs and small cities — not just farms. Counts household income, not just borrower. Cheapest fees of any government program. Map check is the first step.
Adds to any of the above programs. $5,000–$25,000+ in down payment assistance via your state HFA. Forgivable grants, deferred seconds, repayable seconds, MCCs. Land Home is a master servicer for several state HFAs.
State HFAs offer down payment assistance in different structures — and some are dramatically better deals than others. Here's the cheat sheet.
Each is real assistance. Each works differently. Read the structure before you accept the program.
The number that actually matters for first-time buyers isn't the down payment. It's cash to close. Because DPA, gifts, and seller concessions all reduce what you bring to the table.
First-time buyers using DPA typically close in 35–50 days — slightly slower than standard FHA because of the HFA review step.
Short app. We pull credit and identify which programs (FHA, Conv 97, VA, USDA) and which DPA programs in your state you qualify for.
Complete the HUD-approved homebuyer education course (6 hours, ~$50–$100). We issue conditional pre-approval. Use it to make offers.
Stay within program price caps (some HFAs cap at $350K–$500K depending on county). Offer accepted, send contract, lock rate.
Lender underwrites. Then state HFA reviews the DPA file. Adds 3–7 days at the end. We surface conditions early to prevent surprises.
Clear-to-close. Sign at title. DPA funds wire. Loan funds wire. Keys hit your hand. Most first-time buyers close in 35–50 days.
DPA-stacked programs unlock homeownership for buyers who couldn't otherwise qualify. They also add a layer of complexity. Worth it — but worth understanding.
Real archetypes from our recent files. Numbers rounded. Details composited. The pattern, not the names, is what matters.
Single mom, 645 FICO, $42K income. FHA 3.5% down ($8,575) + state HFA forgivable grant ($10,000). Plus 4% seller concessions on the $245K home covered most closing costs. Brought $1,820 to closing. Closed in 41 days.
Marine veteran, 30% disability rating. First-time buyer. $0 down, $0 funding fee on a $215K home in Jacksonville. 690 FICO. 30-year fixed at 6.500%. $2,380 cash to close (pre-paids and survey). Closed in 36 days.
Software engineer, 745 FICO, $78K income (under 80% AMI in her metro). HomeReady 3% down ($11,550) + state MCC at 30% rate. $385K home, 30-year fixed at 6.625%. MCC saves her ~$2,000/yr in federal taxes — for the life of the loan.
Eight questions, in plain English. If yours isn't here, call us. There's no quiz.
Looser than you'd expect. Most first-time buyer programs use the federal definition: you haven't owned a primary residence in the past 3 years.
If you sold your house 4 years ago and have been renting since, you qualify again. If you co-owned a home with an ex but haven't been on a deed in 3+ years, you qualify. It's not literally "first time ever" — it's "first time recently."
Some state HFA programs are stricter (truly first-ever) but most use the 3-year rule. We'll check your specific program when we run the application.
Realistic minimums by program:
VA (eligible) or USDA (eligible area + income): ~$2,000–$5,000 in pre-paids, sometimes $0 with seller concessions. The most accessible.
FHA + DPA: $3,000–$8,000. The DPA covers most of the down payment; you're paying closing costs and pre-paids.
Conv 97 + DPA: $5,000–$10,000. Slightly higher because PMI rates are higher at 3% down on Conventional than HomeReady.
HomeReady (3% down, no DPA): $12,000–$18,000 on a $300K home.
The right program depends on what you have and what your area offers.
Sometimes. Four common DPA structures, ranked by buyer-friendliness:
Forgivable grant. Best deal. Funds you don't repay if you stay in the home 5–10 years. Pro-rated forgiveness if you sell early. Examples: many state HFA grants.
Deferred 0% second mortgage. No payments while you live there. Repaid in full when you sell or refinance. Effectively interest-free for the life of your stay.
Repayable second mortgage. 3–5% interest. $50–$200/mo extra payment. Adds to your monthly burden but still helps with the upfront down payment.
Mortgage Credit Certificate (MCC). Federal tax credit, 10–50% of mortgage interest paid (capped at $2,000/yr). Stays for the life of the loan.
Read the structure carefully. Not all DPA is created equal.
Decision tree:
Did you serve? → VA. Always. Best deal in America.
Is the area USDA-eligible AND your household income under cap? → USDA. Cheapest 0%-down option.
Is your household at or below 80% AMI AND credit is 620+? → HomeReady. Reduced PMI, 3% down, no upfront fee.
Is your credit 700+ AND you have 3% saved? → Conv 97. PMI cancels; no lifetime MIP.
Below 700 credit OR limited savings? → FHA + DPA. Most flexible, easiest to qualify, DPA stacks.
The right answer depends on your specifics. We'll quote multiple side-by-side.
Yes, for most state DPA programs and HomeReady — typically a HUD-approved 6-hour online course (around $50–$100). Some are free.
It's genuinely useful. Covers: budgeting for homeownership, mortgage basics, predatory lending warning signs, foreclosure prevention. Not a sales pitch. Don't skip it just to save 6 hours — it teaches you things you should actually know.
FHA without DPA doesn't require the course. VA doesn't require it. USDA strongly recommends but rarely requires.
MCC = Mortgage Credit Certificate. A federal tax credit that follows your loan for life. Issued through your state HFA.
How it works: certain percentage (10–50% depending on state) of your annual mortgage interest becomes a direct tax credit — not a deduction. On a $300K loan at 7%, that's ~$21K/yr in interest. A 20% MCC rate gives you $4,200 — but the cap is $2,000/yr.
Worth it if: you'll owe federal taxes for the next 20+ years (most W-2 earners do). The certificate has small upfront fees ($200–$500), but the lifetime savings far exceed that.
Not always available — depends on your state HFA. Ask us.
Yes, on every program — but with rules.
FHA & Conv 97: 100% of down payment can be gifted. Required: a gift letter signed by donor stating the funds are a gift, not a loan. Source documentation (donor's bank statement showing the funds existed).
VA: Not really applicable — there's no down payment. Closing costs can be paid by gift.
USDA: Gift funds for closing costs are fine. Can't come from anyone with an interest in the transaction (seller, agent, lender).
Required gift donors: family member, fiancé/domestic partner, employer, charity, or government program. Friends, generally not. Gift letter is mandatory regardless of program.
Probably not — but the answer depends on your local market.
The math against waiting: home prices in most markets appreciate 3–5%/year. Rents go up. Your savings rate has to outpace appreciation + rent + opportunity cost. For most buyers, waiting 5 years to save 20% means missing 15–25% in appreciation.
The math for waiting: PMI is real money ($150–$400/mo). 20% down means lower payments, lower rates (sometimes), no PMI ever, instant equity, more flexibility.
Reality: most first-time buyers should buy now with 3–5% down using a program suited to their profile. Time in the market beats timing the market — especially when paired with affordable mortgage insurance via DPA.
Run both scenarios. Don't self-disqualify because of a 20% myth.
Sixty-second short app. We identify your best loan program AND DPA stack on the same call. One real LO calls within an hour. No quiz, no chatbot.