Buying your first home is expensive enough without leaving money on the table. Every state where ShopProp operates offers programs specifically designed to help first-time buyers — from down payment grants to mortgage tax credits. And most buyers don't know about half of them.
This guide breaks down the major first-time buyer programs in all eight ShopProp states, then shows you how to combine them with a buyer rebate for maximum savings.
The ShopProp Stack: Programs + Rebate
State down payment assistance: up to $25,000+
ShopProp buyer rebate on a $600K home:
$10,505 back at closing
Combined, you could start homeownership with $35,000+ in your corner.
How First-Time Buyer Programs Work
Most state programs fall into four categories:
| Program Type | What It Is | Typical Amount |
|---|
| Down Payment Assistance (DPA) | Grant or forgivable loan for down payment | $5,000–$25,000+ |
| Mortgage Credit Certificate (MCC) | Federal tax credit on mortgage interest paid | 20-40% of interest/year |
| Below-Market Rate Loans | State-backed mortgage at lower interest rate | 0.25–1% below market |
| Closing Cost Assistance | Grant or credit toward closing costs | $2,000–$10,000 |
Key: Most programs define "first-time buyer" as someone who hasn't owned a home in the past three years. If you owned a home 4+ years ago, you may still qualify.
Programs by State
🏔️ Washington
- WSHFC Home Advantage DPA: Up to $15,000 in down payment assistance as a second mortgage (0% interest, deferred for 30 years). Available statewide with income limits up to $180,000 in high-cost counties.
- WSHFC Home Advantage First Mortgage: Below-market rate 30-year fixed mortgages through approved lenders. Combinable with DPA.
- House Key Opportunity: Down payment assistance up to $10,000 for buyers at or below 80% AMI. Can be combined with FHA, VA, USDA, or conventional loans.
- HomeChoice: Down payment assistance up to $15,000 for buyers with disabilities or who have a household member with a disability.
ShopProp WA License: 9004 | Managing Broker: Robert Luecke (#18615)
☀️ California
- CalHFA MyHome Assistance: Deferred-payment junior loan up to 3.5% of purchase price (or appraised value) for down payment or closing costs. Works with CalHFA first mortgages.
- CalHFA Forgivable Equity Builder Loan: Up to 10% of home price (max $150,000) as a forgivable loan — forgiven after 5 years if you stay in the home. Income limit ~150% AMI.
- California Dream For All: Shared appreciation loan covering up to 20% of purchase price. No monthly payments — repaid when you sell or refinance, plus a share of appreciation.
- Mortgage Credit Certificate (MCC): Federal tax credit of 20% of mortgage interest paid annually. Can save $2,000-4,000/year for the life of the loan.
ShopProp CA License: 01890638 | Managing Broker: Robert Luecke (#01881220)
🌺 Hawaii
- HHFDC Mortgage Certificate Program: Below-market rate mortgages for first-time buyers. Income and purchase price limits vary by county.
- Down Payment Assistance (County Programs): Honolulu, Maui, and Hawaii County each offer local DPA programs ranging from $15,000–$40,000 depending on the county and buyer qualifications.
- USDA Rural Development: Available in many areas outside Honolulu. Zero down payment, below-market rates.
ShopProp HI License: RB-22506 | Managing Broker: Robert Luecke (#RB-225007)
🌵 Arizona
- Arizona IDA Home Plus: Up to 5% of loan amount as DPA (grant or 3-year forgivable second). Works with FHA, VA, USDA, and conventional. Income limits around $122,100.
- Pathway to Purchase: Up to $20,000 in DPA for targeted zip codes (10-year forgivable second). Available in Phoenix, Tucson, and other metro areas.
- Home in Five Advantage: Up to 3-4% DPA in Maricopa County. Non-repayable grant with competitive first mortgage rates.
ShopProp AZ License: O674161000 | Managing Broker: Robert Luecke (#BR673997000)
⛳ Texas
- TSAHC My First Texas Home: Below-market rate mortgage with up to 5% DPA (grant or deferred forgivable second). Available statewide, income limits up to ~$100,000.
- TSAHC My Choice Texas Home: Similar structure but available to repeat buyers and first-timers. Grant of up to 5% of loan amount.
- TDHCA Mortgage Credit Certificate: Tax credit of up to 40% of mortgage interest (capped at $2,000/year). Combinable with DPA programs.
- City of Houston/Dallas/Austin programs: Major metro areas offer additional local DPA ranging from $10,000–$30,000.
ShopProp TX License: 756082-B | Managing Broker: Robert Luecke (#756082-B)
🏛️ Virginia
- VHDA DPA Grant: Up to 2-2.5% of purchase price as a non-repayable grant. Combinable with VHDA first mortgage. Income limits vary by region.
- VHDA Plus Second Mortgage: Up to 3-5% of purchase price as a second mortgage (0% interest, no monthly payments, due on sale/refinance).
- Virginia Mortgage Credit Certificate: Tax credit of 20% of mortgage interest paid. Can save $1,500-3,000/year on a typical Virginia mortgage.
- Granting Freedom: DPA up to $10,000 for active military and veterans purchasing in Virginia.
ShopProp VA License: 0225239672 | Managing Broker: Robert Luecke (#0225239672)
🏔️ Colorado
- CHFA DPA Grant: Up to 3% of first mortgage as a non-repayable grant. Available with FHA, VA, USDA, and conventional loans. Income limits up to ~$152,000.
- CHFA Second Mortgage: Up to 4% of first mortgage as a second mortgage. 1% interest rate, 30-year term, no payments for first year.
- Metro DPA: Denver, Boulder, and Front Range communities offer additional local programs ($5,000–$25,000).
ShopProp CO License: EC100108325 | Managing Broker: David Fendler (#EC100108325)
🚗 Michigan
- MSHDA DPA: Up to $10,000 in DPA (up to $15,000 in targeted areas). 0% interest, no monthly payments, forgiven after 20 years or due on sale.
- MI Home Loan: Below-market rate 30-year fixed mortgage through MSHDA. Combinable with DPA. Income limits around $92,000-$106,000.
- MI Home Loan Flex: Same as MI Home Loan but available for manufactured homes and higher-priced properties.
- Mortgage Credit Certificate: Tax credit of 20% of mortgage interest paid annually.
ShopProp MI License: 6505433466 | Managing Broker: Wayne Loebig (#6505433466)
How to Stack Programs with a Buyer Rebate
Here's what most first-time buyers don't realize: state programs and buyer rebates are completely separate savings. You can use both.
| Home Price | State DPA (est.) | ShopProp Buyer Rebate | Total Savings |
|---|
| $400,000 | $10,000 | $5,505 | $15,505 |
| $600,000 | $15,000 | $10,505 | $25,505 |
| $800,000 | $15,000 | $15,505 | $30,505 |
| $1,000,000 | $20,000 | $20,505 | $40,505 |
How it works: Traditional buyer agents charge 2.5-3% commission. ShopProp charges a flat $4,495. The difference goes back to you as a rebate at closing — cash in your pocket, applied to closing costs, or used to buy down your rate.
5 Mistakes First-Time Buyers Make
1. Not checking state programs before house hunting. Many programs require pre-approval through specific lenders. Starting the search without this means missing out on thousands in assistance.
2. Assuming you make too much to qualify. Income limits have risen significantly in high-cost areas. In California and Washington, households earning $150,000+ can still qualify for major programs.
3. Skipping the Mortgage Credit Certificate. The MCC provides a tax credit every year for the life of your loan — not just at purchase. Over 10 years, this can save $20,000-40,000.
4. Paying a percentage-based buyer commission. On a $600,000 home, a 2.5% buyer agent commission is $15,000. ShopProp's flat $4,495 puts $10,505 back in your pocket — money that could cover your entire down payment gap.
5. Not getting a managing broker involved. First-time buyers face the steepest learning curve. ShopProp puts a managing broker — with construction and finance background — on every transaction. That's oversight most agencies reserve for their own deals, not yours.
Frequently Asked Questions
Who qualifies as a first-time homebuyer?
Most programs define a first-time buyer as someone who hasn't owned a home in the past three years. Some states expand this to include buyers purchasing in targeted areas or veterans, regardless of prior ownership.
Can I combine state programs with a buyer rebate?
Yes. ShopProp's buyer rebate is separate from government programs. You can receive down payment assistance from your state AND a rebate of thousands at closing from ShopProp — maximizing your total savings.
What is the income limit for first-time buyer programs?
Income limits vary by state and county. Most programs cap household income at 80-150% of the area median income (AMI). High-cost areas like the Bay Area and Honolulu typically have higher limits to account for local costs.
Do I need to take a homebuyer education course?
Most state down payment assistance programs require completion of a HUD-approved homebuyer education course. These are typically available online and cost $50-100. FHA loans also require counseling for first-time buyers using certain programs.
Since 2007, ShopProp has closed 4,000+ transactions with a managing broker on every deal. Flat fee. Full service. Eight states.