FIRST-TIME BUYERS
First-Time Buyer Programs
Programs designed to help you cross the threshold.
Programs designed to help you cross the threshold.
First-time buyer programs change often. Eligibility rules get revised, assistance funds open and close, and new options appear with little announcement. We track them, so your loan officer can point you to the ones that apply to your situation.
Assistance for first-time buyers takes several forms:
Low-down-payment loan programs
Three of the most common paths for first-time buyers are FHA loans, USDA loans (for eligible rural and small-town properties), and VA loans (for those who qualify through military service). All three are covered in the Government-Backed Mortgages section above. Conventional 97, a 3%-down conventional loan with removable mortgage insurance, has its own section below.
Down payment and closing cost assistance
For most first-time buyers, the down payment is the hardest part. Grants, second mortgages, employer programs, and state housing agency programs all exist to close that gap. The Down Payment Assistance section below covers these in detail.
Mortgage Credit Certificates (MCC)
An MCC is a federal tax benefit administered by individual states. Eligible first-time buyers can claim a portion of their annual mortgage interest as a direct federal tax credit: money back, not just a deduction. Income and purchase-price limits apply. Wisconsin and several other states in our service area run MCC programs.
Using retirement funds
The IRS allows first-time homebuyers to withdraw up to $10,000 from a traditional or Roth IRA without the typical 10% early-withdrawal penalty when the funds are used toward a home purchase. It carries a real cost to your retirement savings, so it warrants a conversation before you commit to it.
A short conversation with a Thompson Kane loan officer will narrow this list to the programs you actually qualify for.
First-time buyer programs change often. Eligibility rules get revised, assistance funds open and close, and new options appear with little announcement. We track them, so your loan officer can point you to the ones that apply to your situation.
Assistance for first-time buyers takes several forms:
Low-down-payment loan programs
Three of the most common paths for first-time buyers are FHA loans, USDA loans (for eligible rural and small-town properties), and VA loans (for those who qualify through military service). All three are covered in the Government-Backed Mortgages section above. Conventional 97, a 3%-down conventional loan with removable mortgage insurance, has its own section below.
Down payment and closing cost assistance
For most first-time buyers, the down payment is the hardest part. Grants, second mortgages, employer programs, and state housing agency programs all exist to close that gap. The Down Payment Assistance section below covers these in detail.
Mortgage Credit Certificates (MCC)
An MCC is a federal tax benefit administered by individual states. Eligible first-time buyers can claim a portion of their annual mortgage interest as a direct federal tax credit: money back, not just a deduction. Income and purchase-price limits apply. Wisconsin and several other states in our service area run MCC programs.
Using retirement funds
The IRS allows first-time homebuyers to withdraw up to $10,000 from a traditional or Roth IRA without the typical 10% early-withdrawal penalty when the funds are used toward a home purchase. It carries a real cost to your retirement savings, so it warrants a conversation before you commit to it.
A short conversation with a Thompson Kane loan officer will narrow this list to the programs you actually qualify for.
First-time buyer programs change often. Eligibility rules get revised, assistance funds open and close, and new options appear with little announcement. We track them, so your loan officer can point you to the ones that apply to your situation.
Assistance for first-time buyers takes several forms:
Low-down-payment loan programs
Three of the most common paths for first-time buyers are FHA loans, USDA loans (for eligible rural and small-town properties), and VA loans (for those who qualify through military service). All three are covered in the Government-Backed Mortgages section above. Conventional 97, a 3%-down conventional loan with removable mortgage insurance, has its own section below.
Down payment and closing cost assistance
For most first-time buyers, the down payment is the hardest part. Grants, second mortgages, employer programs, and state housing agency programs all exist to close that gap. The Down Payment Assistance section below covers these in detail.
Mortgage Credit Certificates (MCC)
An MCC is a federal tax benefit administered by individual states. Eligible first-time buyers can claim a portion of their annual mortgage interest as a direct federal tax credit: money back, not just a deduction. Income and purchase-price limits apply. Wisconsin and several other states in our service area run MCC programs.
Using retirement funds
The IRS allows first-time homebuyers to withdraw up to $10,000 from a traditional or Roth IRA without the typical 10% early-withdrawal penalty when the funds are used toward a home purchase. It carries a real cost to your retirement savings, so it warrants a conversation before you commit to it.
A short conversation with a Thompson Kane loan officer will narrow this list to the programs you actually qualify for.
First-time buyer programs change often. Eligibility rules get revised, assistance funds open and close, and new options appear with little announcement. We track them, so your loan officer can point you to the ones that apply to your situation.
Assistance for first-time buyers takes several forms:
Low-down-payment loan programs
Three of the most common paths for first-time buyers are FHA loans, USDA loans (for eligible rural and small-town properties), and VA loans (for those who qualify through military service). All three are covered in the Government-Backed Mortgages section above. Conventional 97, a 3%-down conventional loan with removable mortgage insurance, has its own section below.
Down payment and closing cost assistance
For most first-time buyers, the down payment is the hardest part. Grants, second mortgages, employer programs, and state housing agency programs all exist to close that gap. The Down Payment Assistance section below covers these in detail.
Mortgage Credit Certificates (MCC)
An MCC is a federal tax benefit administered by individual states. Eligible first-time buyers can claim a portion of their annual mortgage interest as a direct federal tax credit: money back, not just a deduction. Income and purchase-price limits apply. Wisconsin and several other states in our service area run MCC programs.
Using retirement funds
The IRS allows first-time homebuyers to withdraw up to $10,000 from a traditional or Roth IRA without the typical 10% early-withdrawal penalty when the funds are used toward a home purchase. It carries a real cost to your retirement savings, so it warrants a conversation before you commit to it.
A short conversation with a Thompson Kane loan officer will narrow this list to the programs you actually qualify for.
Down Payment Assistance
You may not need 20% down.
The 20% down payment is a convention, not a requirement. Conventional, FHA, VA, and USDA programs all set their minimums lower, and hundreds of assistance programs across the country offer grants, second mortgages, and employer benefits toward what remains. For first-time buyers, that combination can shorten the path to homeownership by years. Many of these sources can also be stacked: a state grant added to a Fannie Mae Community Seconds, or an employer benefit paired with a HomeReady mortgage.
Four of the most useful and widely available paths:
CONVENTIONAL LOAN PROGRAM
Fannie Mae HomeReady
®
As little as 3% down, with up to $2,500 in help.
HomeReady® is Fannie Mae's flagship affordable mortgage program, built for creditworthy buyers who don't have a large down payment saved. Qualifying buyers at certain income levels may receive a $2,500 credit applied directly toward their down payment or closing costs.
DOWN PAYMENT & CLOSING COST ASSISTANCE
Community Seconds
®
Stack a second source of funding on top of your mortgage.
Community Seconds® pairs a conventional first mortgage with assistance from an approved source: state housing agencies, nonprofits, employers, even local governments. Combined financing can reach up to 105% of the home's value.
HOUSING FINANCE AGENCY PROGRAMS
State & Local HFA Programs
Your state may already have money waiting for you.
Every state has a Housing Finance Agency, and most run active programs offering grants, forgivable loans, or reduced-rate mortgages for qualifying buyers. Eligibility rules vary. Income, purchase price, and location all factor in.
GRANTS & SPECIAL PROGRAMS
Grants & Employer Assistance
You might already qualify and not know it.
Grants from nonprofits, assistance tied to specific professions, and employer-sponsored homebuyer benefits are all eligible sources under Fannie Mae guidelines. These programs rarely advertise themselves. Your loan officer can check whether your employer, your profession, or a local nonprofit offers something you qualify for.
Most assistance plans draw on more than one source. A Thompson Kane loan officer can tell you which ones you qualify for and how they fit together.
You may not need 20% down.
The 20% down payment is a convention, not a requirement. Conventional, FHA, VA, and USDA programs all set their minimums lower, and hundreds of assistance programs across the country offer grants, second mortgages, and employer benefits toward what remains. For first-time buyers, that combination can shorten the path to homeownership by years. Many of these sources can also be stacked: a state grant added to a Fannie Mae Community Seconds, or an employer benefit paired with a HomeReady mortgage.
Four of the most useful and widely available paths:
CONVENTIONAL LOAN PROGRAM
Fannie Mae HomeReady
®
As little as 3% down, with up to $2,500 in help.
HomeReady® is Fannie Mae's flagship affordable mortgage program, built for creditworthy buyers who don't have a large down payment saved. Qualifying buyers at certain income levels may receive a $2,500 credit applied directly toward their down payment or closing costs.
DOWN PAYMENT & CLOSING COST ASSISTANCE
Community Seconds
®
Stack a second source of funding on top of your mortgage.
Community Seconds® pairs a conventional first mortgage with assistance from an approved source: state housing agencies, nonprofits, employers, even local governments. Combined financing can reach up to 105% of the home's value.
HOUSING FINANCE AGENCY PROGRAMS
State & Local HFA Programs
Your state may already have money waiting for you.
Every state has a Housing Finance Agency, and most run active programs offering grants, forgivable loans, or reduced-rate mortgages for qualifying buyers. Eligibility rules vary. Income, purchase price, and location all factor in.
GRANTS & SPECIAL PROGRAMS
Grants & Employer Assistance
You might already qualify and not know it.
Grants from nonprofits, assistance tied to specific professions, and employer-sponsored homebuyer benefits are all eligible sources under Fannie Mae guidelines. These programs rarely advertise themselves. Your loan officer can check whether your employer, your profession, or a local nonprofit offers something you qualify for.
Most assistance plans draw on more than one source. A Thompson Kane loan officer can tell you which ones you qualify for and how they fit together.
You may not need 20% down.
The 20% down payment is a convention, not a requirement. Conventional, FHA, VA, and USDA programs all set their minimums lower, and hundreds of assistance programs across the country offer grants, second mortgages, and employer benefits toward what remains. For first-time buyers, that combination can shorten the path to homeownership by years. Many of these sources can also be stacked: a state grant added to a Fannie Mae Community Seconds, or an employer benefit paired with a HomeReady mortgage.
Four of the most useful and widely available paths:
CONVENTIONAL LOAN PROGRAM
Fannie Mae HomeReady
®
As little as 3% down, with up to $2,500 in help.
HomeReady® is Fannie Mae's flagship affordable mortgage program, built for creditworthy buyers who don't have a large down payment saved. Qualifying buyers at certain income levels may receive a $2,500 credit applied directly toward their down payment or closing costs.
DOWN PAYMENT & CLOSING COST ASSISTANCE
Community Seconds
®
Stack a second source of funding on top of your mortgage.
Community Seconds® pairs a conventional first mortgage with assistance from an approved source: state housing agencies, nonprofits, employers, even local governments. Combined financing can reach up to 105% of the home's value.
HOUSING FINANCE AGENCY PROGRAMS
State & Local HFA Programs
Your state may already have money waiting for you.
Every state has a Housing Finance Agency, and most run active programs offering grants, forgivable loans, or reduced-rate mortgages for qualifying buyers. Eligibility rules vary. Income, purchase price, and location all factor in.
GRANTS & SPECIAL PROGRAMS
Grants & Employer Assistance
You might already qualify and not know it.
Grants from nonprofits, assistance tied to specific professions, and employer-sponsored homebuyer benefits are all eligible sources under Fannie Mae guidelines. These programs rarely advertise themselves. Your loan officer can check whether your employer, your profession, or a local nonprofit offers something you qualify for.
Most assistance plans draw on more than one source. A Thompson Kane loan officer can tell you which ones you qualify for and how they fit together.
Conventional 97
3% down, without going government-backed.
3% down, without going government-backed.
Conventional 97 is a low-down-payment conventional loan program that allows qualifying first-time buyers to put just 3% down on a home. The "97" refers to the loan-to-value ratio: you finance 97% of the home's purchase price.
It's offered through Fannie Mae's guidelines, which means it follows standard conventional underwriting rather than government-backed insurance.
How it compares to FHA
Both Conventional 97 and FHA allow low down payments, but the long-term costs differ. Conventional 97 requires private mortgage insurance (PMI), which you can request to have removed once you reach 20% equity in the home. FHA loans require mortgage insurance premiums (MIP) that, for most borrowers, stay in place for the life of the loan unless you refinance into a different loan type.
For buyers who expect to build equity over time, that removable PMI can mean substantial long-term savings.
Key requirements
At least one borrower must be a first-time homebuyer (defined as not having owned a primary residence in the past three years)
Property must be a single-family primary residence (no investment properties or second homes)
Standard conventional credit and DTI requirements apply
No income limits (unlike HomeReady and Home Possible)
Gift funds from family members are allowed toward the down payment
Available as a 30-year fixed-rate loan
Conventional 97 isn't always the right choice. For buyers with lower credit scores or higher debt loads, an FHA loan may qualify when Conventional 97 wouldn't. For higher-income buyers ineligible for HomeReady or Home Possible, Conventional 97 may be the most flexible low-down-payment path. Your loan officer will model both options against your actual situation and show you the long-term cost difference so you can choose with full information.
Conventional 97 is a low-down-payment conventional loan program that allows qualifying first-time buyers to put just 3% down on a home. The "97" refers to the loan-to-value ratio: you finance 97% of the home's purchase price.
It's offered through Fannie Mae's guidelines, which means it follows standard conventional underwriting rather than government-backed insurance.
How it compares to FHA
Both Conventional 97 and FHA allow low down payments, but the long-term costs differ. Conventional 97 requires private mortgage insurance (PMI), which you can request to have removed once you reach 20% equity in the home. FHA loans require mortgage insurance premiums (MIP) that, for most borrowers, stay in place for the life of the loan unless you refinance into a different loan type.
For buyers who expect to build equity over time, that removable PMI can mean substantial long-term savings.
Key requirements
At least one borrower must be a first-time homebuyer (defined as not having owned a primary residence in the past three years)
Property must be a single-family primary residence (no investment properties or second homes)
Standard conventional credit and DTI requirements apply
No income limits (unlike HomeReady and Home Possible)
Gift funds from family members are allowed toward the down payment
Available as a 30-year fixed-rate loan
Conventional 97 isn't always the right choice. For buyers with lower credit scores or higher debt loads, an FHA loan may qualify when Conventional 97 wouldn't. For higher-income buyers ineligible for HomeReady or Home Possible, Conventional 97 may be the most flexible low-down-payment path. Your loan officer will model both options against your actual situation and show you the long-term cost difference so you can choose with full information.
Conventional 97 is a low-down-payment conventional loan program that allows qualifying first-time buyers to put just 3% down on a home. The "97" refers to the loan-to-value ratio: you finance 97% of the home's purchase price.
It's offered through Fannie Mae's guidelines, which means it follows standard conventional underwriting rather than government-backed insurance.
How it compares to FHA
Both Conventional 97 and FHA allow low down payments, but the long-term costs differ. Conventional 97 requires private mortgage insurance (PMI), which you can request to have removed once you reach 20% equity in the home. FHA loans require mortgage insurance premiums (MIP) that, for most borrowers, stay in place for the life of the loan unless you refinance into a different loan type.
For buyers who expect to build equity over time, that removable PMI can mean substantial long-term savings.
Key requirements
At least one borrower must be a first-time homebuyer (defined as not having owned a primary residence in the past three years)
Property must be a single-family primary residence (no investment properties or second homes)
Standard conventional credit and DTI requirements apply
No income limits (unlike HomeReady and Home Possible)
Gift funds from family members are allowed toward the down payment
Available as a 30-year fixed-rate loan
Conventional 97 isn't always the right choice. For buyers with lower credit scores or higher debt loads, an FHA loan may qualify when Conventional 97 wouldn't. For higher-income buyers ineligible for HomeReady or Home Possible, Conventional 97 may be the most flexible low-down-payment path. Your loan officer will model both options against your actual situation and show you the long-term cost difference so you can choose with full information.
Loans
Ready to start your journey to home ownership?
©2026 Thompson Kane & Co., Inc. | NMLS# 898428
8040 Excelsior Dr, Suite 100, Madison, WI 53717
Ready to start your journey to home ownership?
©2026 Thompson Kane & Co., Inc. • NMLS# 898428
8040 EXCELSIOR DR, Suite 100, Madison, WI 53717
Ready to start your journey to home ownership?
©2026 Thompson Kane & Co., Inc
NMLS# 898428
8040 Excelsior Dr, Suite 100
Madison, WI 53717