Key Takeaways
- More than 2,600 down payment assistance programs exist nationwide, with every U.S. county having at least one option available to homebuyers.
- The average DPA benefit is approximately $18,000, though some programs in high-cost areas offer up to $50,000 or more.
- You don’t have to be a first-time buyer for many programs—39% of DPA programs are open to repeat homebuyers.
- Assistance comes in several forms: grants that never need repayment, forgivable loans that disappear after 5-10 years, deferred loans with no monthly payments, and low-interest second mortgages.
- Most programs require income below 80-120% of your area’s median income, a minimum 620-640 credit score, and completion of a homebuyer education course.
- DPA programs may come with trade-offs like slightly higher mortgage rates or residency requirements, so compare the total cost before committing.
Table of Contents
- What Is Down Payment Assistance?
- Types of Down Payment Assistance
- Who Qualifies for Down Payment Assistance?
- How Much Can You Get?
- Where to Find DPA Programs
- National Down Payment Assistance Programs
- State Housing Finance Agency Programs
- Employer-Assisted Housing Programs
- Lender-Specific Programs
- How DPA Works With Different Loan Types
- Pros and Cons of Down Payment Assistance
- How to Apply for Down Payment Assistance
- Frequently Asked Questions
What Is Down Payment Assistance?
Down payment assistance (DPA) programs provide financial help to cover part or all of your down payment and, often, your closing costs too. These programs are offered by state and local governments, nonprofit organizations, employers, and some mortgage lenders to help make homeownership more accessible.
According to Down Payment Resource, more than 2,600 homebuyer assistance programs exist nationwide, and every single U.S. county has at least one option available. One in five aspiring homeowners believes they’ll never save enough for a down payment, according to Bankrate—but that statistic doesn’t account for the billions in assistance that goes unused because people don’t know these programs exist.
Types of Down Payment Assistance
Down payment assistance comes in several forms, each with different repayment rules:
Grants
Grants are free money that never needs to be repaid. Once you close on your home, the funds are yours to keep. Grant amounts typically range from $2,000 to $10,000, though some programs offer more. The catch: grants usually have the strictest eligibility requirements.
Forgivable Loans
These function like grants if you meet certain conditions—typically living in the home for five to ten years. If you stay the required time, the loan is forgiven. If you sell, refinance, or move out early, you’ll repay some or all of the amount. Many programs forgive gradually, so staying half the period means repaying only half.
Deferred Loans (Silent Second Mortgages)
Deferred loans require no monthly payments and often carry zero interest. The loan comes due when you sell, refinance, or pay off your primary mortgage. Some include a shared appreciation component, meaning you’ll owe a percentage of your home’s increased value when you sell.
Low-Interest Second Mortgages
Some programs provide a low-interest second mortgage (typically 1% to 3%) that you repay alongside your primary mortgage over 10 to 15 years.
Matched Savings Programs
Individual Development Accounts (IDAs) match your savings—a 2:1 match means saving $3,000 gives you $9,000 for your down payment. The downside: these programs typically require 12 to 36 months of consistent saving.
Who Qualifies for Down Payment Assistance?
Eligibility varies by program, but most share common criteria:
First-Time Homebuyer Status
About 63% of programs require first-time buyer status, but the definition is flexible—most define it as someone who hasn’t owned a home in the past three years. Veterans and buyers in targeted areas often get exceptions.
Income Limits
Most programs set limits based on your Area Median Income (AMI), commonly 80% to 120% AMI. However, 62% of programs now have income limits exceeding $100,000, and 10% have no income restrictions at all.
Credit Score Requirements
Most programs require a minimum score between 620 and 640, though some accept scores as low as 580 when paired with FHA loans. Check our guide on what credit score you need to buy a house for detailed requirements by loan type.
Other Requirements
You’ll need to buy a primary residence (no investment properties), typically occupy it within 60 days, and complete a homebuyer education course (usually 4-8 hours, often free online through HUD-approved agencies). Most programs limit assistance to single-family homes, condos, and townhouses.
See Which Mortgage You Qualify For
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How Much Can You Get?
According to the Q4 2025 Homeownership Program Index from Down Payment Resource, DPA programs provide an average benefit of approximately $18,000 nationwide, reducing a typical buyer’s loan-to-value ratio by nearly 9%.
Typical assistance ranges include: smaller programs offering $5,000 to $10,000, mid-range state programs providing $10,000 to $25,000, and high-cost area programs reaching $25,000 to $50,000 or more. Many programs offer percentage-based assistance of 3% to 5% of the purchase price.
Notable high-assistance programs include Los Angeles’s Moderate Income Purchase Assistance Program (up to $115,000) and Florida’s Hometown Heroes program (up to $35,000 for essential workers).
Where to Find DPA Programs
Start your search with these resources:
- HUD State Pages list homeownership assistance programs for each state
- DownPaymentResource.com maintains the most comprehensive database, tracking 2,600+ programs from 1,300+ providers
- Your state housing finance agency (search “[your state] housing finance agency”)
- Your city’s housing department for local programs
- Mortgage lenders who specialize in affordable lending and can help match you with programs
Once you find programs you’re interested in, check your home loan eligibility to ensure you can qualify for the underlying mortgage as well.
National Down Payment Assistance Programs
Several programs operate nationwide, giving buyers in any state access to assistance:
National Homebuyers Fund (NHF)
The National Homebuyers Fund provides up to 5% of the loan amount as either a grant or three-year forgivable loan. Works with FHA, VA, USDA, and conventional loans with higher income limits than many local programs.
Chenoa Fund
Offers 3.5% to 5% of the purchase price through either a three-year forgivable loan (forgiven after 36 on-time mortgage payments) or a repayable installment loan. Requirements: minimum 600 credit score, income at or below 115% of AMI, DTI ratio of 45% or lower.
Fannie Mae and Freddie Mac Programs
Fannie Mae’s Community Seconds and Freddie Mac’s Affordable Seconds allow approved organizations to provide secondary financing, raising combined loan-to-value to 105%. Both programs also offer a $2,500 closing cost credit for very low-income borrowers (50% AMI or less), available through February 2026.
State Housing Finance Agency Programs
Every state operates a housing finance agency (HFA) that administers down payment assistance programs. While offerings differ, most provide similar types of help. California leads the nation with 353 programs from 223 providers, followed by Florida with 196 programs and Texas with 128 programs.
Examples of state program benefits include California’s MyHome Assistance (up to 3.5% as a deferred-payment loan), Florida’s Hometown Heroes program (up to $35,000 for essential workers), and Texas’s My First Texas Home program (5% of the loan amount). Most state HFAs offer multiple program options with varying assistance levels and requirements.
Search for “[your state] housing finance agency” to find available programs, or start with HUD’s state resources page for a comprehensive list.
See Which Mortgage You Qualify For
Compare loan options from trusted lenders in your state. Free, no obligation — takes under 2 minutes.
Employer-Assisted Housing Programs
Some employers offer housing assistance as an employee benefit, providing grants or forgivable loans of $3,000 to $15,000 toward down payments or closing costs. These employer-assisted housing (EAH) programs help workers buy homes near their workplace while improving employee retention—turnover can drop by half when employees become homeowners nearby.
Common EAH features include forgivable loans that disappear over 3-5 years of continued employment, extra assistance for buying near the workplace, and matching programs that boost other DPA funds. Notable examples include programs for hospital employees, university staff, and public employees in many cities and states. Washington D.C.’s program provides district government employees up to $20,000 in deferred loans plus matching grants.
Check with your employer’s human resources department to see if housing assistance is available.
Lender-Specific Programs
Several major mortgage lenders offer their own down payment assistance programs. Bank of America’s Community Homeownership Commitment offers up to $7,500 toward closing costs and up to $10,000 toward down payments in select markets. Chase’s DreaMaker program provides $2,500 to $5,000 in certain areas, and Wells Fargo offers up to $5,000 through its Dream. Plan. Home. program.
The trade-off is that you must obtain your mortgage through that lender, which may not offer the lowest available rate. Compare the total cost of the mortgage plus DPA benefits against other options.
How DPA Works With Different Loan Types
Down payment assistance can be combined with various mortgage types:
FHA Loans
FHA loans are the most common pairing with DPA programs. With a minimum down payment of just 3.5%, DPA can cover the entire amount. The Chenoa Fund was designed specifically to cover the 3.5% FHA requirement. Learn more about FHA loan requirements and how they compare in our FHA vs. conventional loan guide.
Conventional Loans
Conventional loans typically require 3% to 5% down for first-time buyers through programs like Fannie Mae’s HomeReady and Freddie Mac’s Home Possible. Many DPA programs work with conventional loans, especially those offered through state housing finance agencies.
VA and USDA Loans
Both VA and USDA loans offer zero-down financing, so DPA programs for these borrowers typically focus on covering closing costs instead, providing 3% to 5% of the loan amount.
Use our home affordability calculator to see how much house you can afford with different down payment scenarios.
See Which Mortgage You Qualify For
Compare loan options from trusted lenders in your state. Free, no obligation — takes under 2 minutes.
Pros and Cons of Down Payment Assistance
Advantages
The most obvious benefit is getting into a home sooner while preserving savings for emergencies and home maintenance. A larger down payment—even one funded by assistance—can improve loan terms and potentially help you avoid PMI. For forgivable loans and grants, there’s no downside if you stay long enough to meet residency requirements.
Disadvantages
Many programs come with slightly higher mortgage rates—typically 0.25% to 1% above market. Over 30 years, this can add thousands in interest, so compare total costs. Residency requirements can be restrictive if you need to move unexpectedly. The application process may also slow your purchase, potentially disadvantaging you in competitive markets where sellers want quick closes. Finally, not all lenders work with all programs, limiting your mortgage options.
How to Apply for Down Payment Assistance
The application process varies by program, but follows a general pattern. First, research available programs using HUD’s state resources, Down Payment Resource’s database, and your state housing finance agency’s website. Check that you meet eligibility requirements for income limits, credit score minimums, and any first-time buyer status.
Complete your homebuyer education course early—most programs require a HUD-approved course (typically 4-8 hours, often available free online) before closing. Then get pre-approved with a mortgage lender who participates in your chosen DPA program. Not all lenders work with all programs.
Once you’re under contract on an eligible home, submit your DPA application through your lender with required documentation including proof of income, tax returns, bank statements, and your education certificate. At closing, the DPA funds will be applied to your down payment and/or closing costs according to the program’s rules.
Frequently Asked Questions
Not always. About 39% of DPA programs are open to repeat homebuyers. Additionally, most programs define “first-time buyer” as someone who hasn’t owned a home in the past three years, so former homeowners who’ve been renting may still qualify.
It might. Some DPA programs require a slightly higher mortgage rate—often 0.25% to 1% above market rates. Compare the total cost of your mortgage with and without DPA to determine which option saves more money over time.
In many cases, yes. Some buyers stack state, local, and employer programs to cover their entire down payment and closing costs. However, your total financing typically can’t exceed 100% to 105% of the home’s value. Your lender can help determine which programs can be combined.
If you sell, refinance, or move out before a forgivable loan is fully forgiven, you’ll typically need to repay some or all of the assistance. Many programs forgive the loan gradually (for example, 20% per year over five years), so your repayment amount decreases the longer you stay.
Some programs do exhaust their funding periodically, especially popular programs with limited budgets. State housing agency programs funded through ongoing revenue sources tend to be more consistently available.
Some DPA applications process alongside your mortgage with minimal delay. Others require separate underwriting that can add one to two weeks to your closing timeline. Ask your lender about expected timelines for your specific program.
Many programs allow funds to be used for both down payment and closing costs. Some specifically target one or the other, while others give you flexibility. Check the program’s rules to understand how you can allocate the funds.
Zero-down loan programs eliminate the down payment requirement but don’t provide extra funds for closing costs. DPA programs provide actual funds you can use for various purposes. The two can be complementary—you might use a VA loan with no down payment and a DPA grant to cover closing costs.
Start with your state housing finance agency’s website and HUD’s state resources page. DownPaymentResource.com offers a comprehensive searchable database. Local real estate agents and mortgage lenders who specialize in first-time buyers typically know which programs work best in your market.
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