Disclaimer: Citi may have different eligibility criteria and/or product offerings than those mentioned on mortgage.com.

You might think first-time home buyer (FTHB) programs are for someone who has never owned a home. But, most first-time home buyer programs welcome buyers who have previously owned a home—just not within the last three years.

So, if you're back in the market after a hiatus, you might qualify for a helping hand. Check out these other ways you may be eligible:

• You've only owned a home that is mobile or temporary in nature and not attached to a permanent foundation
• You've only owned a property that didn't meet safety regulations and repair costs exceed the property value

First, let’s get the lay of the land. There are four main categories that most first-timer programs fall into. From private lenders like Citi to government-backed programs and charitable organizations, we’ll cover the basics of each category before we get into the weeds.

Institutional lender programs

Banks and other private financial institutions, including Citi, provide mortgage programs with relaxed requirements and reduced costs for first-time buyers. For example, Citi offers HomeRun™ Mortgage, a special low down payment program that helps folks from all financial walks of life take their first steps on the property ladder (but more on that later!). Please note, these programs, like Citi’s, may be available only in select markets or may have other limitations such as income limitation.  

Government-backed programs

When we say "government-backed" programs, we're talking about three main types:

1. Government-insured: These are loans insured by a government agency, which protects lenders just in case the borrower defaults. A popular example is the Federal Housing Administration (FHA) loan, which helps first-time buyers qualify for a low down payment.
2. Government-sponsored entity: These entities, like Fannie Mae and Freddie Mac, work in the secondary mortgage market to keep the industry affordable and stable. They buy mortgages from lenders and sell them as securities, freeing up money for lenders to offer more mortgages so new borrowers can afford homes.
3. Government-guaranteed entity: These loans are guaranteed by the government, ensuring the lender is covered even if the borrower fails to repay. Veterans Affairs (VA) loans are a prime example. They help qualifying active duty service members, veterans, and their surviving spouses obtain homes without the need for a down payment or private mortgage insurance.

State & local programs

These programs include perks like down payment assistance, competitive mortgage rates and tax credits tailored to make homeownership more accessible and affordable at the local level. Sometimes, you can even combine these offerings with federal programs to max out your benefits.

Charitable, nonprofit & other programs

There are plenty more programs and grants from all kinds of organizations, from community initiatives to employee-sponsored assistance. If you do a little research and ask around the neighborhood, you might be surprised at the first-time buyer perks you can unlock.

Now that we’ve set the scene, let’s dig into the nitty gritty of popular loan options and grants.

Citi first-time home buyer programs

Let’s take a look at institutional lender programs in action. Citi is here to help remove hurdles to homeownership, making it easier for first-time buyers to qualify for and afford their home sweet home.

Citi HomeRun™ Mortgage

The Citi HomeRun™ Mortgage program makes it easier to cover your financial bases. With down payments as low as 3% and relaxed credit guidelines, affording your first home may be more feasible even without stellar credit. This program is only offered in select markets and income limitations may apply.  

With HomeRun™, you can skip mortgage insurance and get hands-on support with homeownership education and counseling along the way. You’ll also get a fixed rate that’s comparable with conventional loan rates, so you can count on stable, affordable payments.

Citi Lender Paid Assistance

If you’re eligible, Citi could cover up to $7,500 in closing costs. Please note, this is offered in select markets only and income limitation may apply.

To qualify, you need to buy a primary home in an eligible region. Even when you qualify for other first-time home buyer programs, Citi Lender Paid Assistance can be a clever supplement to save a good chunk of change in the final stretch.

You may be shocked by all the ways you can qualify for government-backed support beyond finances. Details like where you’ve worked and where you plan to settle down can also be taken into consideration.

Federal Housing Administration (FHA) Loan

FHA loans let you put down as little as 3.5% if your credit score is at least 580. Plus, they come with a unique perk: your mortgage is assumable. That means if you put your home back on the market, a buyer can take over your loan with the same interest rate, making it a great selling point. But keep in mind, FHA loans come with mandatory mortgage insurance premiums (MIP) that may weigh down your monthly payment. Lenders, like Citi, have stricter requirements for the minimum credit score. In addition, there are restrictions and requirements for a buyer to assume an FHA mortgage.   

Conventional 97 Mortgage Loan

Fannie Mae and Freddie Mac have their own low-down-payment alternatives to FHA loans. As the name hints, a conventional 97 loan lets you put down 3% of your own funds and borrow 97% of the home’s value from a lender. To land 3% down, you must have a credit score of at least 620, pay for private mortgage insurance and take a homeownership education course.

Good Neighbor Next Door

The Department of Housing and Urban Development (HUD) built this program to help everyday heroes plant roots in the communities they serve. Law enforcement officers, firefighters, EMTs and schoolteachers can get a whopping 50% discount on a listing in revitalization areas—regions in need of community and economic development—by making it their main home for at least three years.

Department of Agriculture (USDA) Loan

Looking to carve out a slice of country living? A USDA loan is a zero-down-payment (yes, zero!) option for low- to moderate-income folks in designated rural areas. If you meet the generous credit requirements and income limits, you can skip that down payment and get a competitive interest rate to boot.

Department of Veterans Affairs (VA) Loan

If you’ve served your country, a VA loan might be able to return the favor. Eligible veterans, service members and surviving spouses can use these loans to save at every phase of the home buying journey, including zero-dollar down payments, limited closing costs, low interest rates and no need for private mortgage insurance.

HomeReady & Home Possible Loans

Fannie Mae’s HomeReady and Freddie Mac’s Home Possible can get you into a home with not-so-perfect credit for just 3% down. These loans have a lot in common but differ in the details. For both loans, you must earn 80% or less of the area’s median income. Luckily, both loans give you the wiggle room to use gifts or grants for your down payment.

Credit requirements vary between the two. HomeReady looks for credit scores of at least 620, while Home Possible sets the bar higher at 660. Keep in mind that both loans come with a side of homework: an online course to show you the ropes of homeownership.

HomePath Ready Buyer Program

Wondering how to buy a foreclosed home? Fannie Mae’s HomePath can help first-time buyers turn foreclosed properties into full-time homes. You can make a down payment as low as 3%, and you may qualify to get back up to 3% of your closing costs. However, homes are sold as-is, so you might need to do repairs ahead of move-in day. Also, you’ll have to take Fannie Mae's HomeView Homeownership Education course before you can close the deal.

Federal support is just the tip of the iceberg; states and cities have their own ways of nurturing first-timers. Each state has a Housing Finance Authority (HFA) that helps make homeownership more affordable. Let’s look at the opportunities that may be available at your local level.

Down payment assistance (DPA)

Some programs help with that big lump sum: the down payment. For instance, New York offers the HomeFirst Down Payment Assistance Program, providing up to $100,000 towards the down payment or closing costs in New York City. On the west coast, the California Dream for All Shared Appreciation Loan Program extends aid to first-generation home buyers. What might your state have to offer?

Closing cost assistance

Your state may help you cross the finish line with grants or low-interest loans for closing costs. Some down payment assistance loans don’t even require repayment if you stay in the home for long enough. To qualify, you’ll need to meet income and loan requirements as well as complete a homeowner’s course.

Home buyer educational programs

There’s a steep learning curve to homeownership. That’s why many state programs and mortgage products require an educational course. These classes cover all the bases, including budgeting, creditworthiness, mortgage types and long-term homeownership responsibilities. They may cost a small fee, but they give you the tools to make smart decisions and avoid missteps down the road. These programs are also typically required when the borrower puts down less than 20%. The bank wants to set new borrowers, or borrowers with less than perfect credit, up for success by providing information on what it takes to buy and manage a home.

Plenty of charitable, nonprofit and third-party groups want to see homeownership thrive in their community. We’ll cover a few standout programs, but look into what’s available in your neck of the woods, from company benefits to local housing initiatives.

Habitat for Humanity

This nonprofit rolls up its sleeves and builds or revamps homes for those in need. They offer generous zero-interest loans to first-time home buyers who earn 60% or less than the local median income.

Neighborhood Assistance Corporation of America

This HUD-certified nonprofit helps first-time home buyers secure a low-rate mortgage without a down payment, closing costs or mortgage insurance. If you have lower credit, no worries—this program uses rent payment history and other factors to determine your eligibility.

Employer-sponsored first-time home buyer programs

Believe it or not, some companies will help you land a home. Your employer may match your contributions or offer a grant to cover the down payment. Policies will vary, so you’ll have to read up on your company benefits. Also, be on the lookout for rules around income limits and time on the job.

Loans and grants for student borrowers

Many programs cater to students with limited savings and lots of debt. Some schools even offer grants, scholarships or fund-matching to cover upfront costs. For instance, Ohio offers a Grants for Grads program that provides up to 5% down payment support for recent students. Check with your housing department or financial aid office to find out what's possible with your alma mater.