FAQs About First-Time Home Buyer Programs

Buying your first home is one of the biggest milestones in life, but let’s be real: it can feel totally overwhelming. From figuring out how much you can afford to navigating mortgage options, the process can leave even the savviest among us scratching our heads. That’s where first-time home buyer programs come in—they’re designed to make homeownership more attainable for those of us taking that first big leap.

If you're a remote worker or planning to relocate to a community to achieve a better quality of life (hello, lower cost of living and more green space), these programs could be a game-changer. Below, we break down the FAQs about first-time home buyer programs so you can start your home-buying journey with confidence.

What Are First-Time Home Buyer Programs?

First-time home buyer programs are initiatives that provide financial assistance or incentives to make purchasing your first home easier. These programs can be run by federal, state, or local governments, as well as nonprofit organizations and private lenders. They often come with benefits like lower down payment requirements, reduced interest rates, or closing cost assistance.

Who Qualifies as a First-Time Home Buyer?

Here’s some good news: you don’t necessarily have to be a literal first-time home buyer to qualify. Most programs define a “first-time home buyer” as someone who hasn’t owned a home in the past three years. So, if you sold your house a while back or have only rented up until now, you’re probably eligible.

What Types of Assistance Are Available?

First-time home buyer programs come in all shapes and sizes, but here are some of the most common types:

Where Can I Find First-Time Home Buyer Programs?

The best place to start is with your state’s housing finance authority (HFA). They’ll have a list of available programs tailored to your area. You can also check with local nonprofits, credit unions, or even your employer—some companies offer relocation incentives, including home-buying assistance.

How Much Can These Programs Save Me?

It depends on the program, but the savings can be significant. For example, a down payment assistance program might cover thousands of dollars that you’d otherwise have to pay upfront. Lower interest rates on subsidized loans can save you tens of thousands of dollars over the life of your mortgage. If you’re relocating to an area with a lower cost of living, these savings can stretch even further.

Are There Income Limits?

Many programs have income limits to ensure they’re helping those who need it most. However, these limits are often adjusted based on the cost of living in your area. For instance, if you’re moving to a more affordable community, you might still qualify even if your salary is above average.

Do I Have to Stay in the Home for a Certain Period?

Some programs have residency requirements, meaning you’ll need to live in the home for a certain number of years to avoid penalties. For example, if you receive a forgivable loan, it might be prorated over five years, and you’d have to pay back a portion if you sell before that time.

Can Remote Workers Benefit?

Absolutely. Many remote workers are taking advantage of their flexibility to move to areas with a better quality of life. First-time home buyer programs can make these moves even more affordable. Plus, many states and communities actively encourage remote workers to relocate by offering additional incentives, such as cash or tax breaks when they qualify to move to a community.

Teresa, a remote worker who was living in the Chicago area, says that being able to purchase a home at a significantly lower cost than what she paid for rent over the past few years was one of the driving factors that led her to utilize the MakeMyMove program to relocate to Paducah, Kentucky. "When I started looking at real estate, I found a house I wanted in Paducah that was less than what I had spent in rent over the five years I had lived in my current apartment in Chicago," Teresa explains.

How Do I Apply?

Applying for first-time home buyer programs usually involves these steps:

1. Research - Look up programs in your area and find the ones you qualify for.

2. Get Pre-Approved - Work with a lender who’s familiar with these programs.

3. Take a Home Buyer Education Class -Many programs require this step.

4. Submit Your Application -Be prepared with documents like tax returns, pay stubs, and bank statements.

5. Wait for Approval - Once approved, you can use the program’s benefits toward your home purchase.

Any Tips for First-Time Home Buyers?

Final Thoughts

First-time home buyer programs can be the secret weapon you didn’t know you needed. They’re designed to remove barriers and help you achieve your homeownership dreams—whether you’re setting up a remote work haven or starting fresh in a new community.

So, do your research, take advantage of the resources available to you, and get ready to make your move. Your dream home (and a better quality of life) is waiting!