How to Find Down Payment Assistance Programs for Homebuyers

Saving enough money for a home down payment can be one of the biggest challenges for new homebuyers. Fortunately, assistance programs may help eligible buyers with part of their down payment or closing costs.

Programs can come from state and local housing agencies, nonprofits, community organizations, and other sources.

Good to know: HUD does not provide direct down payment grants to individual homebuyers, but federal housing funds can support state and local homeownership assistance programs.

Who May Qualify

Down payment assistance may be available for:

First-time homebuyers
Low- to moderate-income households
First-generation homebuyers
Veterans
Teachers and other eligible workers
Buyers purchasing homes in qualifying areas
Public housing residents
Buyers who meet specific state or local requirements

Eligibility varies by program and may depend on income, location, home price, credit requirements, first-time buyer status, and the type of mortgage being used.

Check What You May Qualify For

Buying a home may be more affordable than you expect. OpenGrants Network helps you discover legitimate homeownership assistance programs that may match your situation.

✓ Free eligibility check
✓ Free guidance if needed

Check What You May Qualify For →

Programs vary based on your eligibility, location, income, and homebuying plans.

Types of Assistance Available

Depending on eligibility, homebuyers may find:

Down payment assistance
Closing cost assistance
Homebuyer grants
Deferred-payment assistance
Forgivable assistance programs
Low-interest second mortgages
State housing finance programs
Local homeownership programs
Homebuyer education and counseling

Not all assistance is a grant. Some programs provide loans or subordinate financing that may have repayment requirements. Fannie Mae, for example, recognizes various sources of down payment and closing cost assistance, including eligible grants and Community Seconds.

How Down Payment Assistance Programs Typically Work

Search for programs available in your state or local area.
Check the income, homebuyer, and property requirements.
Complete required homebuyer education if applicable.
Get preapproved with a participating lender when required.
Apply for the assistance and provide supporting documents.

Some assistance programs must be arranged through an approved lender or housing finance agency, so it is important to check the program rules before making an offer on a home.

Frequently Asked Questions

What is down payment assistance?

Down payment assistance helps eligible homebuyers cover some of the upfront money needed to purchase a home. It may also help with certain closing costs.

Are there grants for homebuyers?

Some programs provide grants, while others use forgivable loans, deferred loans, or other forms of assistance. Always check whether the money must eventually be repaid.

Who qualifies for down payment assistance?

Requirements vary. Programs may consider income, location, home price, first-time buyer status, credit, and other factors.

Do I have to be a first-time homebuyer?

Not always. Many programs focus on first-time buyers, but other programs may be available to repeat buyers who meet specific requirements.

Can down payment assistance cover closing costs?

Some programs can help with eligible closing costs as well as the down payment.

How much down payment assistance can I receive?

There is no single amount. Assistance varies significantly by program, location, household income, and other eligibility factors.

Where can I find legitimate down payment assistance?

Start with state and local housing finance agencies, HUD-approved housing counseling agencies, public housing agencies, and established nonprofit organizations.

Does down payment assistance have to be repaid?

It depends on the program. Some assistance is a grant or may be forgivable under certain conditions, while other programs are loans that must be repaid.

Helpful Tips

Do this

Search your state and local housing programs.
Ask lenders which assistance programs they accept.
Compare the repayment requirements carefully.
Check whether homebuyer education is required.
Get preapproved before committing to a home.
Keep income and financial documents organized.
Consider closing costs and other upfront expenses, not just the down payment.

Low-down-payment mortgage options may also exist. For example, Fannie Mae's HomeReady mortgage can allow qualified borrowers to put as little as 3% down.

Common Mistakes to Avoid

Avoid this

Assuming you need 20% down
Waiting until after choosing a home to research assistance
Confusing grants with repayable loans
Ignoring income and property restrictions
Missing homebuyer education requirements
Borrowing more than you can comfortably afford

Additional Resources

Useful places to explore include:

State housing finance agencies

Local housing authorities

HUD-approved housing counseling agencies

Community development organizations

Nonprofit homeownership organizations

Participating mortgage lenders

HUD recommends speaking with a HUD-approved housing counselor when exploring homeownership options.