States have been innovators in creating home ownership assistance programs. Here are some notable programs

Getting-a-mortgage-through-your-state-government-an-overview-of-available-programs-2In the last few years, many first-time homebuyers and struggling families have found it increasingly difficult to obtain the financing they need to purchase a home. This is often the result of tighter lending requirements in light of the housing crisis. To help prospective buyers with obtaining mortgages, state government programs around the country are now offering competitive interest rates or rates that are below market to first-time buyers. Getting a mortgage through your state government may be a possibility and here are some notable programs you may qualify for.

Each state has some agency charged with the task of offering advice, counsel, oversight and even direct assistance for homebuyers of all levels. While there may be a mortgage assistance program in every state, here are a few notable states with unique programs:


Getting-a-mortgage-through-your-state-government-an-overview-of-available-programs-5Connecticut offers a fixed mortgage loan program known as the Home of Your Own Program ( click here for more details ). This program is offered specifically to first-time homebuyers. One of the benefits of this program is that it offers some of the lowest interest rates in the state.


A state mortgage program is available through the Illinois Housing Development Authority ( click here for more details ). Through this program, buyers can get state assistance in pursuing federal loans from agencies such as:

  • U.S. Department of Agriculture (USDA)
  • The Department of Housing & Urban Development (HUD)
  • Federal Housing Administration (FHA)
  • Veterans Administration (VA)


Getting-a-mortgage-through-your-state-government-an-overview-of-available-programs-3Nevada has assistance and lower interest loans for first-time homebuyers. The state also features a program of below-market interest rate home loans made available to teachers. With this program, eligible teachers can also be granted a second loan that can be used to subsidize the borrowers' mortgage payments for up to the first five years of the mortgage or to be used, in part, for a down payment.


Offers state-backed assistance and lower-interest loans for first-time homebuyers.

New York

Offers state-backed assistance and lower-interest loans for first-time homebuyers. The state also supports a program in which potential homebuyers can apply for a loan to purchase and substantially renovate a home ( click here for more details) . The loan amount limits are generous enough to be able to cover the purchase and the anticipated costs for repairs and renovations.


Offers state-backed assistance and lower-interest loans for first-time homebuyers.


Offers state-backed assistance and lower-interest loans for first-time homebuyers as well a program similar to the one in New York State where potential homebuyers can borrow enough to purchase and substantially renovate a home.

North Dakota

Getting-a-mortgage-through-your-state-government-an-overview-of-available-programs-4The state offers several assistance and low-interest loan programs for first-time home-buyers. It also offers a special state-backed mortgage program for single-parent households ( click here for more details ).

Most state-sponsored homebuyer assistance programs are aimed at first-time homebuyers and these folks are typically required to meet income limits in order to qualify. Buyers may also be limited to certain price caps on the homes they purchase through state mortgage programs.

The low rates provided by these programs make it possible for you to lower your monthly mortgage payments. These programs also often provide cash assistance for closing costs. In many cases, buyers who are without sufficient funds for down payments can obtain the cash they need as well. Some down payment assistance programs do not require you to pay back the funds if you live in the home for a specified amount of time.

The requirements for state-backed mortgages vary from state to state. Most such loans are limited to homebuyers who have not owned a primary residence within the last three years. Exceptions are sometimes made if you purchase within a targeted area or if the home you are hoping to purchase meets select criteria such as being of historical value.

State government programs are often an excellent resource for prospective buyers who are concerned they may not qualify for a conventional mortgage on their own. RealtyNow can help you by connecting you with local real estate professionals who can help you find out what programs are being offered by your state.