First-Time Home Buyer Programs by State: MN, Ohio, Florida, Tennessee, and More

State first-time home buyer programs are some of the most underused financial tools available to buyers. They offer below-market interest rates, down payment grants, closing cost assistance, and in some cases forgivable second mortgages. The challenge is that they vary so dramatically by state that general advice is nearly useless — what is available in Minnesota is completely different from what exists in Florida or Ohio.

This guide covers the active program landscape in several key states, with the specifics that actually matter: income limits, loan types, and how programs interact with closing costs.

Ohio First-Time Home Buyer Programs

The Ohio Housing Finance Agency (OHFA) administers the primary state programs. The flagship product is the Your Choice! Down Payment Assistance program.

Your Choice! Down Payment Assistance: Provides down payment and closing cost assistance as a grant (2.5% of the purchase price, which never needs to be repaid) or as a second mortgage at 0% interest (with options at 2.5% or 5% of the purchase price). The 0% second mortgage is deferred until the first mortgage is paid off or the home is sold.

Income limits vary by county and household size. For most Ohio counties, household income limits are roughly $115,000 to $140,000 for a 2-person household in 2024-2025. Purchase price limits are generally $350,000 to $450,000 depending on the county.

To use OHFA programs, you must work with an approved OHFA lender and complete a homebuyer education course.

Ohio also has a Grants for Grads program specifically for recent college graduates, offering additional interest rate discounts and forgiveness of the down payment assistance if the buyer stays in Ohio for at least five years.

Minnesota First-Time Home Buyer Programs and Income Limits

Minnesota Housing administers the state's primary programs. The key products:

Start Up program: A 30-year fixed-rate mortgage with below-market interest rates. Can be paired with Monthly Payment Loan (a second mortgage of up to $17,000 for down payment and closing costs, repaid monthly) or Deferred Payment Loan (up to $12,500 forgiven after 10 years if the buyer remains in the home).

MN income limits (Start Up, 2024-2025): In the Twin Cities metro area, income limits are approximately $119,000 for 1-2 person households and $137,000 for 3+ persons. Greater Minnesota limits are generally lower, around $97,000 to $110,000 depending on the county and household size.

Step Up program: For repeat buyers (or buyers above Start Up income limits) who need assistance. Has higher income limits and can be combined with the same Monthly Payment or Deferred Payment Loan structure.

Minnesota Housing also operates the Community Fix-Up Fund for buyers purchasing homes that need renovation — relevant if you are buying in an older market.

The homebuyer education requirement in Minnesota can be completed online through Framework, eHome America, or in-person through a HUD-approved counselor.

Tennessee First-Time Home Buyer Loans

The Tennessee Housing Development Agency (THDA) offers the Great Choice Home Loan — a 30-year fixed-rate FHA, VA, USDA, or conventional loan at a below-market rate.

Great Choice Plus: Down payment assistance of 6% of the loan amount (up to the conforming loan limit), provided as a second mortgage at 0% interest that is deferred until the first mortgage is satisfied or the home is sold or refinanced. This is the most significant benefit — 6% of a $300,000 loan is $18,000.

Income limits are set by county and household size. For most Tennessee counties, limits are roughly $90,000 to $110,000 for 2-person households.

Homeownership for Heroes: THDA offers reduced first mortgage rates for military service members, veterans, law enforcement, teachers, firefighters, and healthcare workers — no first-time buyer requirement.

Florida First-Time Home Buyer Benefits and Income Limits

Florida Housing Finance Corporation administers multiple programs:

Florida Assist: A second mortgage of up to $10,000 at 0% interest, deferred until the first mortgage is refinanced, paid off, or the property is sold. For down payment and closing costs.

Florida Homeownership Loan Program (HLP): A second mortgage of up to $10,000 at 3% interest with a 15-year term.

HFA Preferred Grant: A 3%, 4%, or 5% grant (based on first mortgage amount) for down payment and closing costs — not repaid.

Florida First: A 30-year FHA/VA/USDA first mortgage at a below-market interest rate.

Florida first-time home buyer income limits (2024-2025): Income limits vary by program and county but generally fall in the $95,000 to $130,000 range for a 2-person household in most Florida metros.

Florida also has county-specific programs. Orange County, Hillsborough County, and Palm Beach County all have their own down payment assistance programs layered on top of state offerings.

Maryland First-Time Home Buyer Class

In Maryland, completing an approved homebuyer education class is a requirement for most state-sponsored loan programs and a condition of many down payment assistance programs through the Maryland Mortgage Program (MMP).

Approved education providers: MMP requires HUD-approved counseling. You can complete the education online through Homeownership Council of America or similar providers, typically in 6-8 hours. Cost is usually $75 to $125.

Maryland Mortgage Program: Competitive 30-year fixed-rate loans with a below-market rate. Paired with the 1st Time Advantage grant (a 0% no-payment deferred loan of up to $5,000 for down payment/closing costs) or the Partner Match program (where Maryland matches local government or employer contributions dollar for dollar).

Maryland also has a significant benefit for buyers in "Targeted Areas" — census tracts designated by HUD where first-time buyer requirements are waived, income limits are higher, and purchase price limits are elevated.

Missouri / St. Louis First-Time Home Buyer Programs

Missouri Housing Development Commission (MHDC) offers:

First Place Loan: Below-market rate 30-year fixed-rate mortgage with the option to add a second mortgage (Cash Assistance Loan) of 4% of the loan amount for down payment and closing costs. The second mortgage is forgiven after 10 years if the buyer stays in the home.

Next Step program: For buyers who do not qualify as first-time buyers under the standard definition but meet income requirements.

St. Louis city and county have additional programs through the St. Louis Development Corporation and participating municipalities. The Metro East region (across the Illinois border) has Illinois-side programs through the Illinois Housing Development Authority.

Income limits for MHDC programs in the Kansas City and St. Louis metros are typically around $105,000 to $120,000 for 2-person households.

Denver, Colorado First-Time Home Buyer Programs

Colorado Housing and Finance Authority (CHFA) operates the state program.

CHFA HomeAccess: 30-year fixed-rate first mortgage (conventional, FHA, VA, or USDA) at a below-market rate.

CHFA Second Mortgage: Down payment and closing cost assistance of up to 4% of the first mortgage amount, provided as a deferred second mortgage at 0% interest.

CHFA SmartStep: For borrowers with slightly higher incomes who do not qualify for standard CHFA programs but still need assistance.

Denver-specific programs: The City and County of Denver offers Metro Mortgage Assistance Plus, which provides a grant of up to 4% of the first mortgage for down payment and closing costs — no repayment required. This program has income limits and is specific to properties within Denver city limits.

For properties in the Denver metro area but outside city limits (Aurora, Lakewood, Arvada), check with the specific municipality and with CHFA for combined stacking opportunities.

Michigan First-Time Home Buyer Down Payment Assistance

Michigan State Housing Development Authority (MSHDA) offers:

MI Home Loan: Competitive 30-year FHA/VA/USDA/conventional mortgage with down payment assistance of up to $10,000 through the Down Payment Assistance (DPA) program — a second mortgage at 0% interest due when the home is sold, transferred, or refinanced.

MI 10K DPA Loan: Available specifically in 236 eligible zip codes across Michigan (covering many urban and rural target areas), providing up to $10,000 in down payment assistance.

Michigan income limits for MSHDA programs in the Detroit metro area are typically around $99,000 for 1-2 person households (higher in some counties).

Buyers must complete a MSHDA-approved homebuyer education class, which can be done online.

How State Programs Affect Closing Costs

State HFA programs often reduce closing costs in two ways: through below-market rate mortgages (which reduce your ongoing monthly payment, freeing up savings) and through second mortgage proceeds that can cover part or all of your closing cost obligation.

When stacking programs — for example, using a THDA Great Choice Plus second mortgage in Tennessee for down payment and separately negotiating a seller concession for closing costs — you can sometimes enter the transaction with minimal out-of-pocket cash at closing.

The interaction between program rules and closing cost credits requires careful coordination with your loan officer. Not all programs allow you to combine maximum seller concessions with maximum DPA simultaneously, and some programs require that specific fees not be rolled into the second mortgage. An OHFA or MSHDA-approved lender will know these nuances; an ordinary lender who does not participate in these programs often will not.

Understanding what state programs apply to your transaction directly affects your closing cost picture — programs can eliminate or dramatically reduce the cash you need at the table. The Closing Cost Guide covers the full buyer-side cost structure so you know exactly how program funds interact with your loan estimate, seller credits, and the final cash-to-close figure.