The Help to Buy (Scotland) Fund will provide £220 million over the next three years to help people get into the housing market.
Nicola Sturgeon, Deputy First Minister revealed the Government will help with up to 20% of the price to allow people struggling to find large deposits required by lenders.
The cash is available to buyers of new homes from builders who are taking part in the scheme.
It is only available to people who do not own another property and is available on homes worth up to £400,000.
Ms Sturgeon said the scheme will help others further along the housing chain.
She said: "Getting onto, or moving up the property ladder has become tougher in recent years.
"House buyers are being hampered by a lack of affordable mortgages, with high deposits often a major barrier.
"The Help to Buy (Scotland) scheme will not only help people to buy their first home, it will also help 'second-steppers' and others move to a new property."
The programme has the backing of the Council of Mortgage Lenders and Homes For Scotland, which represents house builders.
The scheme will see the Government take an equity stake in the property of up to 20% which can be paid back by the buyer at any time.
Buyers will still have to pay a deposit if asked for by their mortgage lender, but that is expected to be around 5%.
Philip Hogg, chief executive of Homes For Scotland said the programme had the potential to be, "game changing," for the housing market.
He said: "We believe Help to Buy (Scotland) could be a game changing initiative, acting as the required catalyst to help reverse the downward trend we have witnessed in home building over the last five years."
There are 39 house builders in Scotland taking part in the programme, including industry giants Bett, Barrat, Dawn, Cala and Miller Homes.
The scheme is not just open to first time buyers, but those who own a home will have to sell it before buying a new build home to qualify for help.
Major high street lenders also approved the scheme, including Bank of Scotland, Barclays and Nationwide.
Nicola Noble, head of mortgages at BoS, said: "Innovative schemes such as this will also boost the economy, as increased demand for new build homes will lead house builders to increase construction, providing new jobs in communities across the country."