 TITLE: First-Time Home Buyers: How to Qualify for Loans, Programs and Grants CONTENT: What Are the Different Loans, Programs and Grants?\n--------------------------------------------------\nState and federal governments and nonprofit organizations offer several types of programs to help first-time homebuyers secure a mortgage. Here are just a few examples:\n*   **Conventional mortgages.** Conventional loans are mortgages not backed by a government agency. Some loans backed by Fannie Mae and Freddie Mac require a minimum down payment of just 3%.\n*   **Government agency—insured loans.** These are loans insured by the Federal Housing Administration (FHA) and require a minimum down payment starting at 3.5%. Loans insured by the Department of Veterans Affairs and the Department of Agriculture have no minimum down payment requirement.\n*   **Secondary loan programs.** Some states offer homebuyers a secondary loan to help with a small down payment and closing costs. Some examples include the California MyHome Assistance program and Tennessee's Great Choice Plus program.\n*   **Down payment grants.** Some programs make outright grants, rather than loans, for down payments, meaning this money does not need to be paid back. For example, the National Homebuyers Fund offers a down payment assistance grant worth up to 5% of the loan amount to low- and moderate-income homebuyers, whether or not it's their first home purchase. END