Housing New Zealand hopes to sell all 41 houses listed early in October by the end of this year as part of its scheme to sell 400 houses to low-income earners in the provinces.
The agency says four deals have been signed and sealed so far.
Only first-time buyers qualify for the First Home scheme and must earn no more than $53,000 a year or $80,600 per annum if they are a couple.
They get a Government subsidy of 10% of the cost of the house, capped at $20,000, to put towards the deposit.
Luana Cuckow has just bought a property in Invercargill and said she would not have been able to afford the $118,000 home without the subsidy.
Ms Cuckow said she is happy to live in the house for at least three years as part of the subsidy criteria.