First-time programs·Pillar III: Assets

2,624 programs. $17,000average benefit.

Most buyers have heard of exactly zero of them. That’s not because the programs don’t exist. It’s because the industry is optimized to close loans fast, not to make sure you got every dollar you were entitled to.

See If I Qualify→See loan programs
The most expensive myth in real estate

You don’t need $60,000to buy a $300K house.

You need $9,000. Maybe less. The 20% rule is not a law — it’s a myth that was true in 1983 and hasn’t been true since. Here’s what the actual options look like.

VA / USDA
0%
$0 on a $300K home

Zero down. No PMI (VA). Requires military service (VA) or rural location (USDA). The best deal in mortgages — if you qualify.

Conventional 97 / FHA
3–3.5%
$9–10.5K on a $300K home

The realistic entry point for most buyers. FHA at 580+ credit. Conventional 97 at 620+. PMI applies but is temporary or removable.

Conventional
5–10%
$15–30K on a $300K home

More options, better PMI rates, more lender flexibility. The sweet spot for buyers with a decent down payment but not 20%.

Conventional
20%
$60K on a $300K home

No PMI, best rates, maximum lender options. The "traditional" path — but waiting to save this much often costs more than the PMI would have.

The average first-time buyer in America puts down 6%. Not 20. Six. The 20% benchmark only matters if you want to avoid PMI entirely — and even then, the math of “wait years to save more” often loses to “buy now, build equity, refinance later.”

Loan programs

Four programs. Different mathfor different people.

Federal Housing Administration

FHA Loan

The most accessible conventional path for buyers with credit scores in the 580-679 range. Lower down payment, more flexible guidelines. The trade-off is permanent mortgage insurance — you can’t remove it by paying down the loan.

Min. down
3.5% (at 580+)
Min. credit
580
Mortgage insurance
Permanent
Low credit scoresFirst-time buyersLow down payment

Honest take: FHA mortgage insurance is for the life of the loan. If you start at 3.5% down and plan to stay 7+ years, refinancing into conventional once your equity hits 20% is often the smart play.

Fannie Mae / Freddie Mac

Conventional

PMI drops when you hit 80% loan-to-value through principal paydown. Better long-term math than FHA if your credit score qualifies. 740+ gets you the best rate tier — there’s a meaningful pricing difference between 680 and 740.

Min. down
3% (HomeReady / Home Possible)
Min. credit
620
Mortgage insurance
Removable at 80% LTV
Credit 680+PMI removal goalLong-term hold

Honest take: Conventional wins long-term for buyers with 680+ credit. The upfront MI cost is lower and it eventually disappears. FHA wins short-term for buyers who need the lower credit threshold.

Department of Veterans Affairs

VA Loan

Zero down payment. No monthly mortgage insurance. Competitive rates. A one-time funding fee (1.4–3.6%) that can be rolled into the loan. If you served, this is almost certainly the best mortgage available to you.

Min. down
0%
Min. credit
Flexible (typically 580+)
Mortgage insurance
Funding fee only (can be financed)
VeteransActive dutySurviving spouses

Honest take: Disability-exempt veterans pay no funding fee at all. If you have a service-connected disability rating, confirm your exemption before closing — it’s significant savings that occasionally gets missed.

US Dept. of Agriculture

USDA Loan

Zero down in eligible areas — which includes more suburbs than you might expect. Income limits apply. USDA’s guarantee fee is significantly cheaper than FHA mortgage insurance, making it the better zero-down option for buyers who qualify geographically.

Min. down
0%
Min. credit
620 (typical)
Mortgage insurance
Annual fee 0.35% (lower than FHA)
Rural buyersSuburban edge areasLow-to-moderate income

Honest take: Check the USDA eligibility map before assuming a property doesn’t qualify. Many properties in suburban areas adjacent to major cities are USDA-eligible. The boundary line surprises people.

DPA by state

The programs vary. The principle doesn’t.

Every state AMLO operates in has programs specific to that geography. Some cities have their own on top of state programs. Stacking is legal, common, and the strategy most buyers never hear about.

Pennsylvania
PHFA K-FIT + OwnPGH
Up to $90K

Pittsburgh’s OwnPGH ($90K) and Philadelphia’s Philly First Home ($10K) plus PHFA statewide programs make PA one of the strongest DPA states in the country.

See Pennsylvania programs→
Ohio
Cleveland Heights + OHFA
Up to $30K

OHFA YourChoice and Grants for Grads programs serve the whole state. Cleveland Heights adds $30K on top for city buyers. Most affordable metro in the AMLO network.

See Ohio programs→
North Carolina
Doorway to Prosperity
Up to $95K

Charlotte’s Doorway to Prosperity is $95K — beating even Pittsburgh. The NC 1st Home Advantage adds $15K statewide on top.

See North Carolina programs→
Michigan
City of Detroit + MSHDA
Up to $25K

Detroit’s city grant ($25K) plus MSHDA’s MI Home Loan ($7.5-10K) makes Michigan one of the better stacking states for urban buyers.

See Michigan programs→
Indiana
INHP + IHCDA
Up to $15K

Indianapolis has multiple INHP programs plus IHCDA’s First Step (up to 6% of purchase price) and a mortgage credit certificate worth up to $2K/year in tax credits.

See Indiana programs→
More states
See all markets
Various

AMLO operates in PA, OH, NC, MI, IN, and SC. Every market has state and city-specific programs. View the full market guide.

See More states programs→
How DPA actually works

Six types. Some you repay.Some you don’t.

G

Grants

Free money — no repayment, no conditions. Usually the smallest dollar amounts but the best terms. Apply for these first.

F

Forgivable Loans

Forgiven over time if you stay in the home. Common structure: 10% forgiven per year over 10 years. Miss the residency requirement and you repay the balance.

D

Deferred Loans

No payments until you sell, refinance, or move. The balance is due then — but the interest-free float means significant savings over the holding period.

S

Second Mortgages

A second loan behind your first mortgage. Lower rates, subsidized terms. Monthly payment usually minimal. Repaid when you sell or refinance.

C

Closing Cost Assistance

Specifically for covering lender fees, title insurance, appraisal, and other closing expenses. Often layered on top of down payment programs.

M

Mortgage Credit Certificates

A tax credit — not a deduction — equal to a percentage of your mortgage interest each year. Real dollar savings on your tax return, every year you own the home.

Stacking strategy

Multiple programs. One closing.

Stacking means combining programs on a single purchase — a federal loan base (FHA/Conventional), a state program for down payment, and a local grant for closing costs. Many programs are designed to layer. Most buyers don’t ask because most loan officers don’t bring it up.

Pittsburgh, PA
Up to $90K
OwnPGH: $50K URA grant + $40K HACP forgivable
PHFA K-FIT: 5% of first mortgage (forgivable)
Result: down payment + closing costs + reserves covered
Pennsylvania (statewide)
$16K
PHFA Keystone Advantage: $6,000
PHFA HOMEstead: $10,000
Both statewide. Both forgivable. Both stackable.
Charlotte, NC
Up to $95K
Doorway to Prosperity: up to $95K
NC 1st Home Advantage: $15K (on top)
House Charlotte: $30K (additional layer)
Important clarification

“First-time” doesn’t mean never owned.

For most programs, a first-time homebuyer is someone who hasn’t owned a home in the last three years. If you owned a house in 2018 and have been renting since 2021, you likely qualify as a first-time buyer in 2026. Check before you assume you don’t.

The 3-year rule

Most programs define "first-time" as no homeownership in the past 3 years. Previous ownership before that window doesn't disqualify you.

Income limits are local

Most DPA programs use Area Median Income (AMI) cutoffs — usually 80-120% of local AMI. What that number means in Pittsburgh is different from Charlotte.

Education requirements

Many programs require a HUD-approved homebuyer education course. These are usually free, take a few hours, and actually teach useful things.

Residency requirements

Most forgivable loans require you to live in the home as your primary residence for a set period (5-10 years). Investment properties don't qualify.

You are on step 2 of 4 · Three Pillars

You've seen every DPA type and how stacking works — 2,624 programs averaging $17K nationally.

Next up: 5-minute readiness check.

Keep the momentum. Step 3 · Qualify picks up exactly where this page leaves off — still free, still no credit pull, still no sales call.

See If I Qualify