Has buying a first home seemed like an impossible task? You're not alone in this feeling, but the truth is there are lots of resources and tools out there for first-time homebuyers! Assistance programs are designed with first-time buyers in mind and provide you with the education and financial support you need to fulfill your dream of becoming a homeowner.
In this blog, we'll take a closer look at the different types of assistance programs, such as grants, FHA loans, the First Front Door program, and more, as well as steps you need to take to apply and qualify.
Before diving into the details on assistance programs and other steps to take, you may be asking yourself if homebuying is the right option for you. It's entirely normal to share this feeling—here are some questions to ask yourself before beginning the process of buying a home:
If you're able to answer "yes" with confidence to the questions above, chances are you're likely ready to buy a home!
Assistance programs for first-time homebuyers are designed to help buyers overcome the financial and economic challenges that can come when buying a first home. There are several different forms of assistance you may be eligible for, such as grants, tax credits, government-backed programs, and more.
These options can help provide you with money (or other benefits) to put towards your home and paying for it, such as closing costs or a down payment. Some assistance programs may help you obtain a lower interest rate, which means you'll end up paying less for your home over the course of your mortgage.
Fortunately, there are lots of different kinds of assistance programs you may qualify for as a first-time homebuyer. Let's take a closer look at each type below:
Some assistance programs will offer you aid in paying for your home's down payment, which is the amount of money you pay upfront to buy your home. Grants, which are free money you receive that you won't need to pay back, are commonly offered for down payments.
There are also specific loans you can apply for, like forgivable loans and deferred loans, which can help in contributing to your home's down payment. With these kinds of loans, you may enjoy a decreasing interest rate over a set number of years or other favorable elements that support you as a first-time buyer.
In addition to your down payment, you'll also owe funds known as closing costs when purchasing a home. Closing costs include loan origination fees, home inspection and appraisal fees, recording fees, and more. Closing costs often amount to 2-5% of your home's total purchase price. Some assistance programs offer aid to help you pay your closing costs.
The government often offers programs that are designed for those seeking their first home. You may have even heard of FHA loans, which are courtesy of the Federal Housing Administration. FHA loans support homebuyers by lowering the typical credit score needed for a mortgage, in addition to allowing down payments that are less than standard amounts. Conventional mortgages usually contain down payments between 5-20%, while an FHA loan allows for a down payment as low as 3.5%.
Be sure to look for any programs that your state or local community offer to incentivize first-time homebuyers. Don't be afraid to ask your local credit union or financial institution either, as many offer beneficial programs for homebuyers.
Here at American Heritage Credit Union, we're proud to once again offer the First Front Door program in partnership with the Federal Home Loan Bank of Pittsburgh. This is a grant that can be worth up to $15,0001 for qualified applicants when they contribute $1,500 or more towards their home's down payment.
If you're interested in the First Front Door program, you're encouraged to complete a free pre-approval2 application for a mortgage. This automatically enrolls you in the program so long as you qualify. Funds are on a first-come, first-served basis. You can learn more about the First Front Door program and complete a pre-approval2 application here.
Every homebuying assistance program will have different requirements. In addition to being a first-time homebuyer, some of the common eligibility components include:
States often establish their own unique criteria for first-time homebuying assistance programs. Be sure to look for programs offered by your community and what items you'd need to meet to qualify.
Homebuying assistance is an excellent resource you should tap into, though it is not unlimited. There are guidelines in place that specify how much money you're able to receive in buying your first home. For instance, down payment assistance often has a funding cap that falls within a range based on the specific program and your individual financial need.
Some programs may also have income limits as well. This can vary (especially based on location), but most programs will require you to just make, or fall below, the area median income (AMI). In 2026, the current AMI in Philadelphia for a family of four is slightly over $122,500.
You also may face some regulations regarding the purchase price for your home. Most assistance programs will provide a range that your home's purchase price needs to fall within.
Every homebuying assistance program will come with its own unique application process. Some of the common elements include:
With the First Front Door program, applying for a mortgage pre-approval2 is your first step in the application process. If you're deemed an eligible candidate, you'll be automatically enrolled. You may be asked to submit documents and other relevant details in that application process.
1All offers are subject to change without prior notice. First Front Door (FFD) grants are provided by FHLBank Pittsburgh through a network of lenders. Eligible applicants must be a first-time homebuyer (as defined by FHLBank under the FFD product materials, visit fhlb-pgh.com/ffd for details) and have a household income at or below 80% of the area median income at the time of registration. Through FFD, when Homebuyers contribute a minimum of $1,500 toward down payment and closing costs, they are eligible for a maximum FFD grant of up to $15,000.
2All loans are subject to credit qualification, credit worthiness and other factors. All rates, promotions and offers are subject to change without notice.