A large down payment and a good credit score will help you qualify for a mortgage with lower interest rates. But not everyone has the cash on hand to put down that amount, and even those who do can face steep closing costs. That’s why First home buyer assistance is so important, and there are several options available.

One type of help is a first-time homebuyer grant, which provides funds that you don’t have to repay. Many state and local governments, as well as some nonprofit organizations, offer grants. These can be a big help with covering your down payment and closing costs, especially if you are buying in a high-cost area. They can also help you overcome other hurdles to homeownership, such as income limits or neighborhood restrictions.

First Home Buyers in Melbourne: Essential Assistance Programs and Services

Often, a homebuyer assistance program will have more flexible guidelines than standard mortgage lenders. That can be a huge advantage for buyers who have struggled financially in the past, rely on family or community support, or have fluctuating sources of income. For example, the New York state program SONYMA gives first-time buyers low-interest mortgages with a down payment assistance forgivable loan for one- to four-family homes, condos and co-ops.

The federal government also has a program for first-time buyers that has more rigorous requirements than state programs, but is still accessible to some people with lower incomes and credit scores. It’s called Conventional Plus and combines a 30-year fixed rate mortgage with down payment and closing cost assistance for home buyers who earn less than 80 percent of their area median income.