First-Time Home Buying Programs and Loans You Should Know​

If you’re looking to buy your first home, you’re not alone—and you’re definitely not without help. Across the country, and especially in states like Colorado, Montana, Arizona, and Wyoming, a wide range of programs are designed to make homeownership more accessible. These include down payment assistance, favorable loan options, grants, and special incentives for veterans, essential workers, and low- to moderate-income households. 

Whether you’re worried about saving enough for a down payment or unsure how to qualify for a loan, this guide will walk you through the best tools and resources available to help you afford your first home. 

Why First-Time Buyers Get Extra Help 

First-time homebuyers often face unique financial hurdles. Between saving for a down payment, paying closing costs, and qualifying for a loan, the process can feel overwhelming—especially if you’re trying to do it all while managing rent and student debt. 

That’s why many programs exist specifically for people who’ve never owned a home or haven’t in several years. These programs can: 

Conventional Loans with Low Down Payments 

Great for: Buyers with decent credit and stable income. 

Conventional loans are the most common type of mortgage—and some come with just a 3% down payment requirement: 

Note: You’ll get these loans through approved lenders, not directly from Fannie Mae or Freddie Mac. 

Government-Backed Loans 

Best for: Buyers with lower credit scores or no down payment savings. 

These loans are insured by federal agencies, making them easier to qualify for. 

First-Time Buyer Help by State 

Colorado, Montana, Arizona & Wyoming all offer state-specific help. 

Each state operates a housing finance authority (HFA), which provides affordable mortgage options and down payment assistance: 

Find your state’s HFA website to browse offerings and requirements. 

Down Payment Assistance (DPA) Options 

Ideal for: Buyers who can afford monthly payments but struggle with upfront costs. 

Types of assistance: 

Other Federal and Nonprofit Programs 

Loans for Fixer-Uppers 

If you’re open to renovations, an FHA 203(k) loan can cover the purchase price and repair costs. This lets you buy a lower-priced home that needs work and make improvements right away—without needing separate financing. 

Employer-Sponsored and Student Programs 

Tax Benefits 

Questions to Ask Your Realtor or Lender 

  1. Do I qualify as a first-time homebuyer? Some programs consider you a first-time buyer even if you’ve owned a home in the past—if it’s been more than three years. 
  1. What local or state programs could I apply for? Your lender or real estate agent should know what’s available in your area. 
  1. Can I combine down payment assistance with a low-down-payment loan? Often yes—many programs are stackable, which can increase your purchasing power. 
  1. What are the upfront costs I need to prepare for? Understanding closing costs, inspections, and prepaid taxes is key to avoiding surprises. 
  1. Are there income or purchase price limits on the programs available? Many programs have caps—ask what limits apply and if you qualify. 

How to Get Started 

  1. Check your credit and work to improve it if needed. Good credit can unlock better loan terms. 
  1. Get pre-approved with a lender who works with first-time buyer programs. This helps you shop with confidence. 
  1. Research your state’s HFA website to see what assistance and loan programs are available. 
  1. Talk to your employer—some companies offer housing benefits or down payment assistance. 
  1. Work with a real estate agent who understands these programs and can guide you to qualifying homes. 

Final Thoughts 

Buying your first home is a major milestone—and with the right programs, it’s more within reach than ever. From state-backed loans to federal assistance and grants, first-time buyers have plenty of resources to lighten the financial load. Whether you’re in Colorado’s mountain towns, Montana’s open plains, Arizona’s desert suburbs, or Wyoming’s quiet communities, smart planning and the right loan can help you get the keys to your new home.