State-Run Veteran Friendly Home Loan Programs

In addition to the federal VA home loan program, many states offer their own veteran-friendly mortgage and housing assistance programs. While the VA loan helps eligible veterans and certain surviving spouses purchase homes with favorable terms, it is not the only homebuying benefit available.

State-run programs vary widely. Depending on where you live, you may find mortgage options that offer interest rate discounts, down payment assistance, tax credits or other financial incentives. Some programs include income limits, purchase price caps or need-based eligibility requirements.

This page lists state-run veteran home loan programs and housing benefits available across the country.

Note: State housing programs can change without notice. While we aim to keep this page current, you should confirm the latest details directly with the official state housing authority or program website before applying.

Veteran Home Loan Programs Available by State

Alaska

• State Veterans Interest Rate Preference: Qualified veterans receive a 1% interest rate reduction on the first $50,000 of the loan amount to purchase an owner-occupied, single-family residence or, with certain restrictions, a duplex, triplex or fourplex. Veterans must meet “State Vet” income limits.
• AHFC First Home Limited Program: The AHFC First Home Limited mortgage loan program provides reduced-rate mortgages for qualifying first-time homebuyers who meet maximum income limits and acquisition cost limits OR who qualify as veterans.
• AHFC First Home Program: Similar to the Limited version of the program listed above, the AHFC First Home reduced interest-rate loan program is offered to qualifying first-time home buyers including veterans. However, unlike the Limited option, this veteran-friendly mortgage program features no income limits or sales price caps.

California

• CalVet Program: Qualifying veterans receive below market interest rates with low or no down payment requirements.

Colorado

• CHFA Firststep & Firststep Plus: Qualified veterans receive affordable interest rates, a 30-year term and even an optional CHFA Second Mortgage Loan to use for down payment and closing cost assistance.
• CHFA SmartStep and SmartStep Plus: These CHFA loans are provided to veterans, first-time home buyers, and non-first time buyers alike. VA mortgages are included in the list of eligible government-backed loan programs available via CHFA SmartStep/SmartStep Plus.

Connecticut

• The CFHA Military Mortgage Option: There is an additional 0.125% off already below-market interest rates for veterans or Military Service members loans. This program is open to unmarried, surviving spouses or civil union partners of a veteran who died as a result of Military Service or service-connected disabilities.

Delaware

• Delaware State Housing Authority Preferred Plus Home Loan: This program assists borrowers who want to purchase a primary residence; this program uses a network of participating lenders who can work with VA mortgages and other government-backed loans or conventional equivalents.
• First-Time Home Buyer Tax Credit: Qualified veterans can participate in this program even if they’re not buying their first home. The program entitles first-time buyers who purchase a home in Delaware as their primary residence to take a federal income tax credit up to $2,000 each.
• Delaware First-Time Home Buyer Transfer Tax Break: While not specifically aimed at veterans or currently serving military members, any applicant who bought a first home after Aug. 1, 2017 and paid an increased Delaware State Transfer Tax (at a rate of 1.25%) may be entitled to a refund.

Florida

• Salute Our Soldiers Military Loan Program/Mortgage Credit Certificate (MCC) Program: Veterans and active duty military personnel throughout the state can receive a below market rate 30-year fixed rate first mortgage loan and up to $10,000 in down payment assistance and closing cost assistance.

Georgia

• Georgia Dream Loan: Active-duty service members, first responders and some other groups can get up to $7,500 in down-payment assistance in the form of a zero-interest loan.

Illinois

• Illinois Housing Development Authority (IHDA) Access Programs:
  • Access 4% Forgivable – Provides 4% of the purchase price, up to $6,000, for down payment and closing costs. This assistance is forgiven monthly over a 10-year period and does not have to be repaid if the borrower remains in the home for the full forgiveness term.
  • Access 5% Deferred – Provides 5% of the purchase price, up to $7,500, as an interest-free loan for down payment and closing costs. Repayment is deferred for the life of the first mortgage and is only required if the borrower sells, refinances or pays off the home.
  • Access 10% Repayable – Provides 10% of the purchase price, up to $10,000, as an interest-free loan for down payment and closing costs. This assistance is repaid monthly over a 10-year period.

Indiana

• Honor Our Vets Program: Active duty, veterans and retired military personnel who are moving to Indiana can get up to $5,000 to help with a down payment, closing costs or relocation expenses. Participants must qualify for a VA-backed loan and work for an employer enrolled in the program.
• IHCDA First Place Program: This Indiana veteran-friendly First Place loan features down payment assistance of six percent based on the purchase price of the home (but may not exceed the appraised value) for first-time home buyers OR qualifying veterans.
  
• IHCDA Helping To Own (H2O) Program: Helping To Own is a program offering Down Payment Assistance of 3.5% (based on purchase price and must not exceed the appraised value) for first-time home buyers or qualifying veterans. This assistance may be considered a grant as long as program guidelines are met.

Iowa

• Iowa Finance Authority Programs:
  • IFA FirstHome Mortgage Program: This is a first-time home buyer program open to veterans (who don’t have to be first-time buyers) featuring lower interest rates (which are not affected by credit score–an important feature) and lower fees, according to the official site.
  • IFA Home For Iowans Mortgage Program: All requirements are similar including similar to the FirstHome Program (actual dollar amounts may vary) income caps, purchase price caps, and other rules. The biggest difference is the Home For Iowans program is for both first-time home buyers AND repeat borrowers.
  • Military Homeownership Assistance Program: The program provides a $5,000 grant to service members and veterans for down payments and closing costs on qualifying homes. The funds may be used in conjunction with the FirstHome and Homes for Iowans programs.

Louisiana

• Louisiana Housing Corporation Loan Programs:
  • Market Rate GNMA Program: This program offers qualified veterans 30-year, fixed-rate FHA, VA or USDA Rural Development mortgages at favorable interest rates.
  • Mortgage Bond Revenue Home Program: Bond programs are often provided for need-based loans for borrowers meeting income caps and purchase price limits. Veterans are not specifically targeted with this program but those who meet income and purchase requirements are welcome to apply.
  • Mortgage Revenue Bond Assisted Program: This is another LHC program offering assistance for prospective homebuyers (veterans or not) who need help with down payment and closing expenses.

Maine

• SaluteME/SaluteME Home Again Programs: Maine Housing offers qualified active duty, veterans, and retired military personnel a 0.25% discount on our already low first home loan 30-year fixed interest rate.

Maryland

• T​he Veterans and Military Family Mortgage Program (Maryland Homefront): Provides military veterans and active duty military with a special interest rate discount of 0.25% for a 30-year and a fixed rate mortgage.
• SmartBuy Program: This program offers “selected state-owned homes” available for purchase with qualifying home buyers able to apply for special financing that can “pay off their outstanding student debt as part of the home purchase.”
  
• Disabled Veteran-Friendly Maryland State Tax Credit For Adapted Housing: While this program is not specifically aimed at disabled veterans, those who qualify may find a state tax credit available for making adaptive alterations or improvements to a Maryland home to make it more accessible for a disabled home owner who has adapted the home to provide more independent living.
  
• The Maryland Mortgage Program (MMP): MMP offers qualifying veterans a 30-year fixed-rate home loan for homes purchased within the state. Interest rates and other loan terms are described as being “competitive” with other home loans.
  

Massachusetts

• Home for the Brave Program: eMassHousing offers affordable, no-down payment mortgage financing for veterans of the U.S. Armed Services.
• Operation Welcome Home Mortgages: This program offers home loans with affordable terms for members of the Guard, Reserve, active-duty military, Veterans and Gold Star families. This program is need-based, has income limits and purchase price restrictions and targeted area financing may apply. This program offers up to $2,500 in closing cost assistance and may be combined with MassHousing down payment assistance.

Mississippi

• Veterans’ Home Purchase Board: Mississippi residents who are veterans, current active-duty military personnel, or current members of the Mississippi National Guard or Reserves with over six years of service, offers an advantageous interest rate for the purchase of an existing home or a home recently constructed.

Missouri

• First Place Loan Program: Veterans can take part in the  program even if they’ve already owned a home. The program offers affordable interest rates as well as cash assistance for a down payment and closing costs.
• Next Step Program: This program is meant for “non-first time home buyers” including qualifying veterans who lack “sufficient equity or funds” for the down payment on a new primary residence.

Nebraska

• MIFA Military Home Program: For buyers who are actively employed by any branch of the service or for qualified veterans who have been discharged from the service under conditions other than dishonorable. The program offers 30-year fixed rate loans and there are no pre-payment penalties.
• NIFA First Home Programs
  • NIFA First Home Targeted Program: For buyers who purchase a home located in a target area and do not need down payment and closing cost assistance.
  • NIFA Homebuyer Assistance Program: The Homebuyer Assistance (HBA) Program offers down payment help to qualifying borrowers to help those who want to buy a home but do not have enough money saved for downpayment and/or closing costs.

Nevada

• Home is Possible for Heroes Program (HIP-H): This hero-worthy program gives veterans and military personnel below-market fixed interest rate 30-year loan, reduces monthly mortgage payment and there is no first-time homebuyer requirement.

New York

• Home for Veterans Program: Active service members, veterans, and their spouses or co-borrowers can qualify for interest rates .375% lower than standard SONYMA interest rates for loans with down payment assistance. Down Payment Assistance Loans are available with this program for up to $3,000 or 3% of the purchase price (not to exceed $15,000), whichever is higher. Minimum borrower cash contribution is only 1%; the remaining 2% can come from a gift or other acceptable source.

Ohio

• Ohio Heroes Program: Veterans, active duty military members or members of reserve components (including surviving spouses) can qualify for a discounted mortgage interest rate.

Oregon

• ODVA Home Loan Program/ORVET Home Loan: ODVA is a lender and servicer of home loans exclusively for veterans in Oregon and provides reduced interest rates. The Oregon Veteran Home Loan is a separate and distinct loan product from the federal VA Home Loan Guarantee benefit.

Pennsylvania

• The Keystone Government Home Loan Program (K-Gov): The Pennsylvania Housing Finance Agency (PHFA or the Agency) offers qualifying veterans home purchase loans with competitive interest rates and lower fees.
• HFA Preferred™(Lo MI): Borrowers who qualify for the HFA Preferred (Lo MI) loan program are offered relief from mortgage insurance–that expense is paid for under HFA Preferred by “one of several private mortgage insurance companies” when the borrower makes a down payment of less than 20 percent.
• Keystone Home Loan: This home loan program is offered to those who are not first-time home buyers but who plan to purchase property in a targeted county or target area.
• Keystone Advantage Assistance Loan Program: This loan program is basically a second mortgage for the purpose of helping out with closing costs and down payment expenses.

Tennessee

• Homeownership for the Brave (Part of The Great Choice Program): Approved military and veteran homebuyers offers a fixed rate, 30-year mortgage option and allows individuals to borrow up to 96.5 percent of the purchase price.

Texas

• TexVet Programs
  • Land Loans: Texas veterans and military members can borrow money to purchase land at favorable interest rates and terms while only requiring a minimum 5% down payment.
  • Home Loans: Eligible Texas veterans and military members have an opportunity to purchase a home with an unbeatable, low-interest loan with little or no money down.
  • Home Improvement Loans: Veterans or military member can receive help pay to improve a home through the Texas Veterans Home Improvement Program (VHIP).
• Alternatives to TexVet
  • Texas Department of Housing and Community Affairs (TDHC) My First Texas Home Loan
  • TDHC My Choice Texas Home loan
  • Texas State Affordable Housing Corporation (TSAHC) Homes for Texas Heroes Home Loan Program
  • TSAHC Sweet Texas Home Loan

Utah

• Veteran First Time Homebuyer Grant Program: Recently separated veterans (last 5 years) or a currently serving member of the military living in Utah gifts $2,500 who purchase their first home in Utah.

Washington

• Washington Home Advantage Government Program: This program is offered to qualifying applicants who meet the program’s income restrictions and credit score requirements. The mortgages eligible under this program include most government-backed mortgage loan programs including VA mortgages.
• Veterans Downpayment Assistance Loan Program: A second mortgage loan program with a 3.00% interest rate and payments deferred for up to 30 years for Washington State veterans who have served our country. Veterans can combine with the Home Advantage or House Key first mortgage loan program.
• WSHFC House Key Home Loan Program: Those who are eligible to apply for Veterans Down Payment assistance are offered access to the House Key home loan program, but there are also opportunities for those who want to purchase “never occupied new construction” or homes in a community land trust with or without the above downpayment assistance options. The WSHFC official site provides few details about the terms of the loan you can apply for as a qualifying veteran but below market interest rate mortgage loans are available through this program.

What to Know Before Applying

State-run veteran housing programs vary widely. Some are designed exclusively for veterans, while others are general housing programs that offer added benefits to military members.

Depending on the state, you may encounter:

• Income limits or purchase price caps
• First-time homebuyer requirements (sometimes waived for veterans)
• Mandatory homebuyer education courses
• Restrictions on property type or occupancy

Some programs provide direct mortgage loans. Others offer down payment assistance, interest rate discounts or tax credits. While a few programs are need-based, many are simply structured to make homeownership more accessible for eligible veterans.

Program details can change frequently. Interest rate discounts, assistance amounts and eligibility rules may be updated, relocated or discontinued without much notice. If you have difficulty locating a program online, check your state housing authority’s official website directly to confirm its current status.

Types of Assistance Available

Veteran-friendly state programs generally fall into a few broad categories:

Interest Rate Discounts
Some states offer reduced mortgage interest rates for qualified veterans through bond programs or housing finance authority loans.

Down Payment and Closing Cost Assistance
These benefits may come in the form of grants, deferred second mortgages or low-interest secondary loans to reduce upfront costs.

State-Issued Veteran Home Loans
A small number of states offer their own veteran home loan programs that operate separately from the federal VA loan guarantee.

Tax Credits
Certain programs provide Mortgage Credit Certificates (MCCs) or similar tax benefits that can reduce a borrower’s federal income tax liability after the home purchase.

Understanding which type of benefit a program offers can help you evaluate how it may fit into your financing plans.

Final Thoughts

State-run veteran housing programs can provide meaningful support, but no two programs are exactly alike. Eligibility requirements, funding limits and loan structures differ by state, and availability can change over time.

A good starting point is your state’s Department of Veterans Affairs or state housing finance authority website. You may also consider speaking with a lender or housing counselor familiar with veteran-focused programs in your area.

The federal VA home loan remains one of the strongest home financing benefits available to veterans. However, depending on where you live, state programs may offer additional advantages worth exploring. Reviewing both options can help you determine the best path forward.