Buying your first home is both exciting and overwhelming. From navigating high property prices to finding affordable financing, the journey can be tough. Fortunately, several government-backed housing schemes are available in 2025 that make homeownership easier, especially for first-time home buyers in India.
This guide walks you through the top central and state government housing schemes, eligibility rules, benefits, and how to make the most of them.
A first-time home buyer is someone who has never owned a pucca (permanent) house in India—either individually or jointly with someone else.
No current or previous ownership of a house
Annual household income within prescribed limits (e.g., ₹3–₹6 lakh for EWS/LIG)
Must not have availed housing subsidy benefits earlier
Preference for women as owners/co-owners
Valid Aadhaar and income/address documentation
PMAY-U 2.0 is the upgraded version of the original PMAY scheme, continuing the mission of “Housing for All.”
Interest subsidy on housing loans under the Credit Linked Subsidy Scheme (CLSS)
Construction support if you already own land (BLC)
Affordable housing through government-private partnerships (AHP)
Annual household income ≤ ₹6 lakh (for EWS/LIG)
Property must fall within a carpet area limit (≤ 60 sq.m.)
Must apply through a registered bank or housing finance company
CLSS helps reduce your home loan EMI by offering a subsidy of up to ₹1.8 lakh.
Subsidy on the first ₹8 lakh of loan
Available for those earning ≤ ₹6 lakh per year
Applies only to first-time home buyers
Carpet area limit: 60 sq.m. (EWS/LIG)
Note: CLSS for MIG categories has been discontinued since 2022.
If you don't qualify under PMAY-U or want additional options, state housing boards offer similar schemes.
| State | Scheme | Key Features |
|---|---|---|
| Maharashtra | MHADA Lottery | Flats for EWS, LIG, MIG in cities like Mumbai |
| Delhi | DDA Housing Scheme | Affordable flats across Delhi NCR |
| Tamil Nadu | TNHB | Budget homes in Chennai and other cities |
| Telangana | Rajiv Swagruha | Readymade houses for middle-income families |
| Gujarat & Karnataka | Housing Boards | City-wise housing assistance |
Tip: Most state schemes run lotteries or online draws, so keep an eye on their websites.
Even beyond housing schemes, the government offers financial incentives:
Stamp Duty Concessions: Reduced for women and first-time buyers in many states
Tax Deductions:
Section 80EE: Deduction up to ₹50,000/year (loan ≤ ₹35 lakh, house ≤ ₹50 lakh)
Section 80EEA: Extra ₹1.5 lakh (property ≤ ₹45 lakh)
Section 80C/24(b): Deductions on principal and interest
Faster loan processing if you have a Jan Dhan account
PMAY tie-up properties: Many builders offer PMAY benefits with their projects
Use this checklist:
Urban or rural?
Urban: PMAY-U, DDA, MHADA
Rural: PMAY-Gramin, BLC
Income Level?
≤ ₹6 lakh/year: Eligible for CLSS
Higher income: Check state schemes or regular loans
Do you own land?
Yes: Apply under BLC
No: Look for allotment-based or builder tie-up options
Ready-to-move or under construction?
Choose accordingly, depending on builder approval
Are you a woman co-owner?
Gain extra benefits like reduced stamp duty
Pro Tip: In some cases, PMAY and a state scheme can be combined. Check compatibility before applying.
Not checking latest rules: Schemes get updated. Always check official sites (e.g., pmaymis.gov.in, state portals)
Ignoring size/cost caps: Your home must meet size and price limits to qualify
Missing documents: Aadhaar, PAN, income proof, etc., are mandatory
Applying through agents: Only apply through certified banks or housing finance companies
Assuming you're eligible: Always verify before applying or booking a home
Buying your first home doesn’t have to be a financial burden. Thanks to PMAY-U 2.0, CLSS, and state housing schemes, first-time buyers in India now have a real shot at homeownership.
Take time to understand your eligibility
Prepare your documents early
Apply through official channels
Maximize tax benefits & savings
PMAY-U Portal: pmaymis.gov.in
MHADA Lottery: mhada.gov.in
DDA Housing: dda.gov.in
TNHB Portal: tnhb.tn.gov.in