First-Time Buyers · Updated October 2026

First-Time Home Buyer Guide: California, Texas, Florida & Maryland

Buying your first home is exciting, and it comes with a lot of questions. This guide covers who counts as a first-time buyer, state programs and down payment help, and the steps from pre-approval to closing. I’m happy to go through it with you in English or Farsi.

Am I a First-Time Buyer?

Who counts as a first time home buyer in California? More people than you might think. Many programs, including those from state housing agencies, use a broad definition: you’re a first-time home buyer if you haven’t owned and lived in a home as your main residence during the past three years. So if you owned a home years ago and have been renting since, you may qualify again.

Each program writes its own rules, though. Some count anyone who has never owned a home, some have exceptions for single parents or people who owned a mobile home, and some programs aren’t limited to first-time buyers at all. Down payment assistance programs often also have income limits and purchase price limits by county, plus a homebuyer education course.

The good news: most standard loans, like FHA and conventional loans, don’t require you to be a first-time buyer. Being one just opens a few extra doors.

A good place to start

Before you talk to any lender, pull your free credit reports from AnnualCreditReport.com and fix any errors you find. Then add up your monthly debts and your savings. Those three things, credit, debt and savings, drive most of what a lender will offer you, and knowing them helps you set a realistic price range from day one.

California Programs: CalHFA & Dream For All

If you’re a first time home buyer California offers help through the California Housing Finance Agency (CalHFA). CalHFA doesn’t lend directly. It works through approved lenders and offers first mortgages paired with down payment and closing cost assistance. Details, income limits and current program terms are on the CalHFA homebuyer page.

CalHFA loans and assistance

CalHFA’s first mortgages come in FHA and conventional versions, and its assistance programs are usually junior loans that help with the down payment or closing costs. Many are deferred, meaning you don’t make monthly payments on them, and you repay them when you sell, refinance or pay off the first mortgage. Income limits vary by county, and homebuyer education is required for first-time buyers.

California Dream For All

Dream For All is CalHFA’s shared appreciation program for first-generation home buyers. According to CalHFA, it offers up to 20% of the price for down payment or closing costs, up to $150,000. When you sell, refinance or pay off the loan, you repay the original amount plus a share of any increase in the home’s value.

Status as of October 2026: the 2026 Dream For All application window ran from February 24 to March 16, 2026, and recipients were chosen by random drawing, not first come, first served. The portal is closed to new applications. Check CalHFA’s Dream For All page for any future round.

Down Payment Assistance

Down payment assistance (DPA) comes from state housing agencies, cities, counties, nonprofits and some lenders. It usually takes one of these forms:

Grants that don’t need to be repaid, sometimes with conditions such as living in the home for a set time
Deferred loans with no monthly payment, repaid when you sell or refinance
Forgivable loans that are forgiven over a period of years if you stay in the home
Low-rate second loans with a small monthly payment

Each program has rules about income, purchase price, credit score and the type of first mortgage you can pair it with. Some programs also limit which lenders can offer them. Down payment assistance California programs and their funding change during the year, so always check the current terms before you count on one.

Family gift money is another common source of down payment funds. Most loan programs accept gifts from relatives with a signed gift letter and a record of the transfer.

Budget for more than the down payment

First-time buyers are sometimes surprised by the costs that come on top of the down payment. Plan for:

Closing costs: lender fees, title and escrow, appraisal, and prepaid items such as insurance and property taxes
Reserves: some programs want savings left over after closing
Moving and setup: utilities, basic repairs and furniture

A seller credit or assistance program can cover some closing costs. Read my mortgage calculator guide to see how taxes, insurance, PMI and HOA dues add up each month.

Texas, Florida & Maryland Programs

Each state where I’m licensed has its own housing finance agency with first-time buyer and down payment programs. Program names, amounts and income limits change, so go to the official source for the current details:

Texas

The Texas State Affordable Housing Corporation (TSAHC) and the Texas Department of Housing and Community Affairs (TDHCA) both offer home buyer programs, including down payment help.

Florida

Florida Housing Finance Corporation offers first mortgage and down payment assistance programs through participating lenders.

Maryland

The Maryland Mortgage Program (MMP) offers first mortgages and down payment assistance for eligible buyers.

Official sites: TSAHC, TDHCA, Florida Housing and Maryland Mortgage Program. Cities and counties in all four states may have their own programs too. Tell me where you’re buying and I’ll help you check which ones are worth applying for.

FHA vs Conventional 3% Down (HomeReady)

Many first-time buyers assume they need 20% down. You don’t. Two of the most common low down payment options are FHA loans and conventional 3% down loans.

FHA: 3.5% down

An FHA loan needs 3.5% down with a credit score of 580 or higher. Credit guidelines are flexible, and FHA is often a good fit if your score is in the fair range or your debt-to-income ratio is higher. The cost is FHA mortgage insurance, which includes an upfront premium and an annual premium.

Conventional: 3% down

Conventional loans can go as low as 3% down. Fannie Mae’s HomeReady program allows 3% down for borrowers whose income is at or below 80% of the area median income for the property’s location (see Fannie Mae’s HomeReady page). Freddie Mac has a similar program, and standard conventional 3% down options exist for first-time buyers too.

With a conventional loan you pay private mortgage insurance (PMI) when you put less than 20% down, but PMI can be removed once you build enough equity (CFPB explains when PMI can be removed). With strong credit, conventional is often cheaper over time. With lower credit, FHA often wins. I’ll price both so you can compare the full monthly cost.

Steps From Pre-Approval to Closing

Here’s how buying a home usually goes, step by step. Timelines depend on your file, the property and the contract.

1. Check your budget

Look at your income, debts and savings. My mortgage calculator guide shows what goes into a monthly payment.

2. Get pre-approved

Apply online and send documents. A pre-approval shows sellers you're a serious buyer.

3. Shop for a home

Work with a real estate agent and stay within the price range we agreed on.

4. Make an offer

When your offer is accepted, you'll put down an earnest money deposit and we lock your rate.

5. Inspection and appraisal

A home inspection checks the property's condition, and the lender orders an appraisal to confirm its value.

6. Underwriting

The underwriter reviews your file and may ask for a few more documents. Avoid new debt and big purchases now.

7. Closing

Review your Closing Disclosure, sign your documents and get the keys.

3.5% down and flexible credit.

Mortgage Calculator Guide

What goes into your monthly payment.

Persian Mortgage Broker

Help in Farsi from start to finish.

Ready to Buy Your First Home?

Get pre-approved online, or call me and we’ll go over your options in English or Farsi.