If you’re a first-time homebuyer trying to get into the market in 2025, you’re not alone — and thankfully, you’re not without help. Rising home prices and interest rates have made affordability a real challenge, but there’s good news: several new or expanded programs are offering more support this year to help you get the keys to your first home.

Here’s what’s new and what you should know:

Down Payment Assistance Is Expanding

Many states and local housing finance agencies are expanding down payment assistance (DPA) programs in 2025, but there are also nationwide efforts worth noting:

• The Downpayment Toward Equity Act is still under consideration in Congress. If passed, it would offer up to $25,000 in cash assistance to eligible first-generation homebuyers. While it's not law yet, it's worth keeping on your radar as it could be a game-changer.

• Fannie Mae and Freddie Mac continue to support 3% down conventional loans through HomeReady® and Home Possible®, designed for borrowers with lower to moderate incomes. These can be paired with DPA in many areas.

• Federal Home Loan Bank (FHLB) Programs: In 2025, some regional FHLBs increased funding to grant programs that help first-time buyers with down payment and closing costs.

Tip: Always ask your lender or agent if local grant programs can be combined with these national options.

Tax Credits and Grants for First-Timers

New proposals and pilot programs are aiming to make buying your first home more financially manageable:

• Tax credits for first-time buyers have been reintroduced in federal discussions, aiming to offset part of your mortgage interest or down payment through a refundable credit. These haven't passed yet but could move forward this year.

• Some municipalities and nonprofit organizations have launched grant programs for buyers working in education, healthcare, or public service roles, especially in underserved communities.

📌 Check sites like HUD.gov or DownPaymentResource.com to see what’s available in your area.

More Flexible Loan Options in 2025

Lenders are responding to affordability issues with more creative underwriting and loan products:

• Temporary Rate Buydowns: Many lenders are offering 2-1 or 3-2-1 buydowns, where your rate starts lower and increases over a few years — giving you time to adjust or refinance.

• Freddie Mac’s BorrowSmart® and Fannie Mae’s MH Advantage® programs are seeing wider adoption, especially for borrowers purchasing manufactured or modular homes.

And FHA loans still remain a strong choice for first-timers, especially since recent changes have made it easier to qualify with student loan debt.

What First-Time Buyers Should Focus On

In today’s market, the right strategy matters more than ever:

1. Get pre-approved — not just pre-qualified — and make sure it’s a fully underwritten approval when possible.

2. Talk to a lender who knows all the layers of local, state, and national assistance programs.

3. Ask about layered support — some programs can be stacked for even more benefit.

Bottom Line

Buying your first home in 2025 is still possible — and new resources are making it more accessible. From down payment assistance to expanded loan options, support is out there. The key is working with someone who knows how to navigate it all and customize a plan based on your unique situation.

Need help figuring out what you qualify for? Let’s take a look at your options together.