Family finances matter. Program requirements include household income thresholds, credit score minimums and cash reserve requirements. Income thresholds are based on the area’s median income—up to 120 percent in high-cost markets. Income limits are almost always based on household size, so a program income limit as a percentage of median income would be significantly higher for a family of 5 than for a single person.
Most programs will require some money down from the homebuyer, as well as homebuyer education, especially for first-time homebuyers, to ensure your long-term homeownership success.
First-time homebuyer status. Many programs are designed for first-time homebuyers. But, keep in mind that a first-time homebuyer is defined by the Department of Housing and Urban Development (HUD) as someone who has not owned a home in 3 years. So, if you've been renting for the past 4 years, you're a first-time homebuyer again!
Plus, not all programs are reserved for first-timers—about 37 percent of programs we track in Down Payment Resource don’t include that requirement.
Your profession may give you an edge. More than 13 percent of programs are designed for individuals providing an important community service, including educators, protectors, healthcare workers and veterans. Homeownership programs like this, designed to help workers live in the community they serve, are especially helpful in high cost markets.
