Home Loans in 48 StatesARBOR Financial Group · NMLS #236669
First Home Financing
First time homebuyer and down payment assistance (DPA) loans are mortgage programs that lower the upfront cost of buying your first home, often by pairing a low down payment loan with a grant, a forgivable loan or a low interest second mortgage. ARBOR can help you find the right program for your budget.
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Call today: 866-521-6488NMLS #236669 · Equal Housing Opportunity · NMLS Consumer Access
3%
Down on HomeReady and Home Possible
3.5%
Minimum down payment on FHA loans
0%
Down on VA loans for eligible borrowers
3 years
Since you last owned a primary home
First Time Buyer Basics
First time homebuyer and down payment assistance (DPA) loans make owning a home more accessible by helping with the down payment and closing costs. They are designed for new buyers who need extra support to afford a home, and the help often comes as a grant, a second mortgage or a forgivable loan.
These programs suit first time buyers, people who have not owned a home in the past 3 years and buyers with limited savings. Many DPA programs also serve teachers, healthcare workers and public service employees. If the down payment is your main hurdle but you have steady income and credit, a DPA loan may be a great fit.
DPA programs provide help through grants or low interest second mortgages that cover down payments and closing costs. Some programs must be repaid, while others are forgiven after a set number of years. Eligibility typically depends on your income, your credit score and the location of the property, and the assistance works alongside your main mortgage.
DPA funds can often be used with popular loan programs. FHA loans allow as little as 3.5% down, VA loans offer zero down payment options for eligible veterans and active duty military members, and USDA loans offer 100% financing in designated rural areas. Conventional programs such as Fannie Mae HomeReady and Freddie Mac Home Possible allow as little as 3% down.
These programs lower your upfront costs so you can buy a home sooner. Some offer forgivable assistance, which you do not have to repay if you meet the residency requirements. Others may offer flexible credit requirements or lower interest rates than traditional loans, and keeping more savings in the bank leaves room for moving costs, repairs or emergencies.
If saving for a down payment is the biggest thing standing between you and a home, a DPA loan can provide the help you need. These programs are designed to help qualified buyers secure a home loan while keeping upfront costs low. If you are not sure whether you qualify, an ARBOR loan originator can review your situation.
Why ARBOR
Buying your first home should feel exciting, not overwhelming. Our team helps first time buyers secure the right loan and access down payment assistance programs that make owning a home more affordable.
From prequalification to closing, we guide you every step of the way with competitive rates, personalized support and a clear, simple mortgage process.
Ready to get started? Contact ARBOR Financial Group today.
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FAQ
Answers to common questions about first time homebuyer loans and down payment assistance, including who qualifies, down payments, credit scores and income limits.
Still have questions?
Talk with a licensed ARBOR loan originator about first time buyer programs in your area.
866-521-6488[email protected]Browse all mortgage FAQsA first time homebuyer loan is a mortgage program designed to make buying your first home more affordable. These loans often come with lower down payment requirements, flexible credit guidelines and access to assistance programs that reduce upfront costs.
Down payment assistance is help that covers part or all of a qualified buyer's down payment, and sometimes closing costs. It may come as a grant, a forgivable loan or a low interest second mortgage, offered through state and local housing agencies.
Most programs define a first time homebuyer as someone who has not owned a primary residence in the past 3 years. Some programs also accept buyers who owned a home before but meet other eligibility requirements.
Many first time homebuyer programs allow down payments as low as 3%. FHA loans typically require 3.5% down with a credit score of 580 or higher, and down payment assistance may help cover part of that amount.
Yes, in some cases. VA loans, USDA loans and certain down payment assistance programs let eligible buyers purchase a home with little or no down payment, depending on their qualifications and the property.
It depends on the loan program. Many lenders look for a score of around 620 for conventional loans. FHA loans may allow lower scores: 3.5% down with a score of 580 or higher, or 10% down with a score of 500 to 579, depending on other financial factors.
Often, yes. Many down payment assistance programs can help cover both the down payment and some closing costs. The exact benefits depend on the specific program and where the home is located.
Down payment assistance is offered in many states, counties and cities, but programs differ from place to place. Availability and eligibility depend on your location, income limits and the type of property you are buying.
Some do. Certain programs set income limits based on the median income in the area where the home is located, because they are designed to help moderate income households become homeowners. Others have no income limit.
Most programs allow single family homes, townhomes, condominiums and certain multi unit properties, as long as the home will be your primary residence. Rules vary by program, so confirm the property qualifies before you make an offer.
Timing depends on your file and how quickly documents come in once you are under contract on a home. Getting preapproved before you start your home search can help speed things up.
Start by getting preapproved with a mortgage professional, who can review your finances and identify the loan programs and assistance options available in your area. An ARBOR loan originator can walk you through each step.
*Important notice: By refinancing your existing loan, your total finance charges may be higher over the life of the loan. The content provided within this website is presented for information purposes only. This is not a commitment to lend or extend credit. Information and/or dates are subject to change without notice. All loans are subject to credit approval. Other restrictions may apply. ARBOR Financial Group is not affiliated with an agency of the federal government, HUD or FHA. THIS IS NOT A GOVERNMENT DOCUMENT. HUD or FHA did not distribute or approve this material.
