First-time homebuyers who are pondering their financing options may want to consider grants or loans from the city, county or state where they live or work. Local governments are offering assistance with down payments and closing costs to eligible buyers at competitive rates and terms, often with little or no down payment required. Most programs define first-time buyers not only as those who have never owned a home, but also those who have not owned or co-owned a home for three years. Qualifications and terms of affordable housing incentives vary by program and jurisdiction, so applicants should contact program administrators for details. Typical qualifications include the buyer’s household income and size, credit rating, place of residency or work, debt-to-income ratio, occupancy of the home as a principal residence, and liquid assets committed toward the purchase. Some programs have restrictive covenants. Homebuyer and financial counseling is available and is mandatory in some programs. Separate incentives exist for government employees or affiliates, such as public school or transportation workers; in some cases, the employee does not have to be a first-time homeowner.