How First-Time Homebuyer Loan Programs Save You Money
Many state Housing Finance Agencies offer below-market mortgage rates and down payment assistance for eligible first-time buyers who meet income and home price limits. Because the rate difference compounds over a full loan amount, even a modest gap can add up to thousands of dollars in interest savings per year compared to a conventional mortgage.
This calculator compares your annual interest at the program's below-market rate against what you'd pay at a typical conventional rate, so you can see exactly how much a first-time buyer program is worth before you shop for a mortgage. Keep in mind these programs typically require income limits, homebuyer education courses, and a maximum purchase price.
Frequently Asked Questions
Many states offer Housing Finance Agency (HFA) loans with below-market rates and down payment assistance for eligible first-time buyers who meet income and purchase price limits.
Eligibility usually depends on household income relative to the area median income, the purchase price of the home, and sometimes credit score or homebuyer education requirements.
For most fixed-rate HFA loans, yes — the rate is locked at closing and stays the same for the life of the loan, unlike an adjustable-rate mortgage.