Virtually every state still has programs to help first-time buyers seal the deal on a home.

From low-cost mortgages to down payment assistance, these programs can lower monthly payments, provide cash for closing and make the numbers work for you.

Some programs don't have as much money as they did before the mortgage crisis hit. A few states -- including Alabama, Arizona, Kansas, Oregon, Texas and Wisconsin -- have even been forced to suspend some loan programs.

But the ones that remain are well worth considering.

Most state programs are limited to buyers who haven't owned a primary residence for three years. But many also extend the programs to people who want to move to designated areas, whether or not they are first-time buyers.

The programs usually have restrictions, such as limits on how much money you can make and the price of the home you want to buy. Steady work is a must. Good credit definitely helps. Some set minimum credit scores or require that you take a course on owning a home.

Applying isn't any more difficult or time-consuming than applying for a conventional mortgage, but the potential benefits are appealing enough that all first-time buyers should find out what's available.

Here's the kind of help you can expect to find:

Loans with lower or at least competitive interest rates. These generally are 30-year, fixed-rate loans. Most have income caps and some have caps on the purchase price of the home.

Cash for down payments and closing costs. Amounts vary, and there generally are income caps and other restrictions. But in some cases, these loans never have to be repaid if you live in the home long enough.

A new wrinkle in 2009 was that states began offering short-term loans so first-time buyers who qualified for the $8,000 federal income tax credit could access at least some of it in advance for down payments, closing costs or the mortgage loan itself.

These programs worked in various ways, but generally borrowers were required to pay no interest unless they fail to repay the loan when they receive their tax refund in 2010.

The tax credit originally was set to expire on Dec. 1, 2009, until it was extended. Now, buyers must have a signed purchase agreement by April 30, 2010, and close on the home by June 30, 2010. Some states have extended their tax credit advance programs, and others may follow suit.

Loans toward the purchase or repair of foreclosed homes. In 2009, Indiana became one of the first states to offer 0% loans using money from the federal Neighborhood Stabilization Program.

Eligible Hoosiers could apply for up to $15,000 toward a primary residence, with the possibility of $10,000 more through matching funds from a bank, to use for down payments and closing costs on a foreclosure.

Several other states have similar programs, including Arizona, California, Georgia, Iowa, Michigan, Minnesota, Missouri and Wisconsin, plus the District of Columbia. Funding is always limited, so if you think you might qualify, you have to move fast.

Income tax credit programs. Mortgage Credit Certificates allow qualified applicants to claim a federal tax credit of 20% or more of the interest paid on their mortgage each year, for the life of the loan. This increases disposable income so borrowers may be eligible for a larger loan.

Help for public-sector employees, people with special needs and others. Not every state offers this kind of assistance, but some have special mortgage loan programs for teachers, police officers and fire fighters, state and municipal workers, people with disabilities, veterans and active-duty servicemen and women.

First-time buyer loans and down payment assistance programs may not be for everyone, but it's smart to investigate what's available, especially if you've had credit problems.

Start by checking to see what's available in your state.

Here's where to find links to state first-time buyer programs. Remember -- these programs can change, so it's wise to check the Web sites periodically for updates.

By Kathy O'Gorman

Interest.com Contributing Editor

Whether you're buying a home or refinancing an existing mortgage, we have a mortgage calculator that can help you make the right decisions.