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Lenders propose a lot of special programs to help first-time homebuyers. But not all of them target first-time homebuyers, some help people who don’t make enough money.

You should learn if your financial institution or bank offers any special mortgages. They usually can provide references: local offices of the federal Department of Housing and Urban Development, State housing agencies, Consumer Credit Counseling Service branches. Some popular programs, and their brief summary:

Department of Veterans Affairs, or VA, mortgages

VA loans are backed, but not issued by the U.S. government. They help veterans and their spouses buy homes. Down payment is not required (except for relatively expensive properties) besides some other benefits may apply. says it is more understanding for borrowers who defaults

Federal Housing Administration, or FHA, mortgages

FHA loans are backed, but not issued, by the U.S. government, besides in comparison with conventional loans have easier standards for credit qualification, down payment and underwriting. If borrowers default. HUD collects mortgage insurance payments from borrowers and ensures lenders full payment

Rural Housing Service mortgages

Low-interest, no-down-payment loans are provided by the Department of Agriculture to farmers, or other borrowers who have low incomes and buys property in small towns or rural areas.

State and local government-backed mortgages

If you are a first-time homebuyer and meet specific income guidelines or you are going to buy a home in certain locations you should know about programs that will help you. Loan feature low down payment requirements and subsidized interest rates will help you with closing costs and other benefits.

Down payment assistance programs

In FHA-insured loans changed in 1990s. Buyers should make down payment of at least 3 percent, besides nonprofit agencies can bestow gifts of down payment money to buyers. Sprung up the nonprofit agencies that did just that; not exactly what the FHA intended, but the federal government has passed on opportunities to stamp out down payment assistance programs.

Only the cooperation of the seller, buyer and lender makes it possible to do down payment assistance. The seller donates money to the down-payment assistance program. The money is given to the seller by the program, out of its pool of money. The seller gives the program a contribution equal to the down payment plus a processing fee. This satisfies the FHA’s regulation that prohibits the seller from giving the down payment to the buyer.