First-Time Homebuyer Programs in Wyoming

The down payment on a new home often presents the biggest hurdle for first-time homebuyers. In Wyoming, with an average home value of $353,250, a down payment of $70,650 is typically needed to avoid private mortgage insurance.

Fortunately, first-time homebuyer programs in Wyoming can help you achieve homeownership. There are also mortgages that allow first-time buyers to put less down on a home, but these usually come with income requirements and require mortgage insurance. MoneyGeek explores several state-specific and government-backed first-time homebuyer programs for people from different financial backgrounds.

Wyoming offers grants and loans to assist first-time homebuyers in covering both down payment and closing costs. Below, we have compiled the first-time homebuyer programs offered by the Wyoming Community Development Authority (WCDA) to help you find the best option for your particular needs and situation.

The First-Time Homebuyer Program offers low, fixed-interest 30-year loans to eligible buyers. This program includes FHA, VA and Rural Development financing options and can be paired with WCDA's down payment assistance. The loan applies to owner-occupied, single-family homes on 10 acres or less, including manufactured homes on permanent foundations.

WCDA’s Down Payment Assistance Program supports eligible homebuyers by providing up to $15,000 to cover down payments, closing costs and prepaids, making homeownership more accessible for those who qualify for WCDA-approved first mortgage loans. Two options are available to suit different financial needs.

• Home$tretch DPA Loan Product: This option provides a deferred-payment, 0% interest loan with 0.080% APR and no monthly payments, which is repaid only when the home is sold or refinanced.
• Amortizing DPA Loan Product: This features a low, fixed-interest rate with structured monthly payments over a 10-year period.

The Advantage Program offers a 30-year fixed-rate mortgage available for both first-time and repeat homebuyers in Wyoming. It includes flexible property options without a purchase price limit, allowing financing for single-family homes sitting on 10 acres or less. This loan can also be paired with the Mortgage Credit Certificate (MCC) program for additional tax savings. Importantly, the program is not subject to the Federal Recapture Tax.

The HFA Preferred Program offers a 30-year fixed-rate mortgage for both first-time and repeat homebuyers, with no purchase price limit and no Federal Recapture Tax. This program can finance homes up to 10 acres, including manufactured homes on permanent foundations. The program can also be paired with the Mortgage Credit Certificate (MCC) for added tax benefits, making it a flexible option for Wyoming residents.

The Mortgage Credit Certificate (MCC) program from WCDA offers a federal tax credit to first-time homebuyers, allowing them to reduce their annual tax liability based on a percentage of mortgage interest paid. This credit can be claimed each year for the life of the loan as long as the home remains the buyer’s primary residence. The MCC can be combined with WCDA’s HFA Preferred or Advantage purchase loans, and it’s especially helpful for buyers looking to increase their affordability over time.

In Wyoming, there are zero-down-payment loan programs that allow you to purchase a home without putting any money down. USDA and VA loans are two government-backed options that come with no down payment.

USDA loans are designed to help low- to moderate-income homebuyers in rural areas. They are issued by the USDA loans through its Rural Development Guaranteed Housing Loan program.

USDA loans offer several benefits, including low interest rates and zero down payments. They are intended to make homeownership more accessible for those who might not qualify for conventional financing. The program also provides flexible credit guidelines to help more families achieve homeownership.

Certain criteria must be met to qualify for USDA loans. The property should not exceed 2,000 square feet and must be located in a USDA-eligible rural area with a population under 35,000. Additionally, applicants must adhere to income limits, which vary by location. For instance, in Jonson County, Wyoming, the income limit for a four-person, low-income household is $76,300, while in Sheridan County, Wyoming, it is $84,450.

VA loans are a type of mortgage issued by the U.S. Department of Veterans Affairs and are designed to help veterans, active-duty service members and eligible surviving spouses become homeowners.

VA loans offer several advantages, including the absence of a down payment requirement. They also do not require private mortgage insurance (PMI), which can save borrowers a significant amount of money over the life of the loan. Additionally, VA loans come with lower interest rates compared to private loans. As of November 2024, the APR for a 15-year fixed-rate VA loan in Wyoming is 6.26%, while a 30-year fixed-rate VA loan stands at 6.38%.

To be eligible for a VA loan, you must meet specific requirements related to your length of service or service commitment, duty status and character of service. You must also meet certain income limits depending on where you live and provide a valid certificate of eligibility (COE).

First-time homebuyers in Wyoming can take advantage of low-down-payment loan programs that allow them to finance their home with a down payment of 3.5% or less. These programs include conventional, FHA and FHA 203(k) loans.

FHA loans and conventional loans are the two most common types of mortgages. FHA loans require a minimum down payment of 3.5%, making them accessible for buyers with limited savings. Conventional loans can require as low as a 3% down payment for first-time homebuyers but generally have stricter credit score and debt-to-income ratio requirements than FHA loans.

Interest rates are another important factor to consider. As of November 2024, the current APR for a 15-year fixed-rate conforming loan in Wyoming is 6.09%. In comparison, the APR for a 15-year fixed-rate FHA loan is 8.05%. APRs on FHA loans can be higher because there tend to be more fees and extra costs associated with borrowing money on government-backed loans.

Use our FHA vs. conventional loan calculator to help you compare FHA and conventional mortgage programs and find the best option for you.

We have addressed some frequently asked questions about first-time homebuyer programs in Wyoming to help you find the best option and move closer to achieving homeownership.

Explore additional MoneyGeek resources for first-time homebuyers in Wyoming to help you with the homebuying process.