Down Payment Assistance Programs
Grants, forgivable loans, and low-interest DPA programs to help you afford the down payment and closing costs on your home purchase.
What is Down Payment Assistance (DPA)?
Down payment assistance programs (DPA) help homebuyers cover the upfront costs of purchasing a home, including down payment and closing costs. These programs are offered by federal, state, and local governments, as well as nonprofits and employers.
DPA comes in several forms: grants (free money that doesn't need to be repaid), forgivable loans (loans forgiven after living in the home for a set period, typically 5-10 years), deferred payment loans (no payments until you sell or refinance), and low-interest second mortgages.
Most DPA programs require homebuyer education, have income limits (typically 80-120% of area median income), and may require you to occupy the home as your primary residence. Some programs are specifically for first-time homebuyers, while others are available to repeat buyers, especially in targeted neighborhoods or for specific professions (teachers, police officers, etc.).
Types of Down Payment Assistance
Grants
Free money that never needs to be repaid. Often ranges from $5,000-$15,000. May have residency requirements.
Forgivable Loans
Loans forgiven over time (e.g., 20% per year for 5 years). Stay in the home and the loan disappears.
Deferred Payment Loans
Zero-interest loans with no monthly payments. Repay when you sell, refinance, or pay off the first mortgage.
Low-Interest Second Mortgages
Low-rate second mortgage (typically 1-4% interest) with monthly payments. More flexible than deferred loans.
Common DPA Eligibility Requirements
First-Time Homebuyer
Many programs require you haven't owned a home in the past 3 years. Some programs allow repeat buyers.
Income Limits
Typically household income at or below 80-120% of Area Median Income (varies by program and location)
Homebuyer Education
Most programs require completion of a HUD-approved homebuyer education course
Primary Residence
Must occupy the home as your primary residence
Credit & Debt Requirements
Minimum credit score (usually 620-640) and debt-to-income ratio requirements
How to Find DPA Programs
State Housing Finance Agencies
Every state has a housing finance agency that administers DPA programs. These are usually the largest and most accessible programs.
Local Government & Counties
Many cities and counties offer additional DPA programs funded through Community Development Block Grants and local bonds.
Lender & Employer Programs
Some lenders offer proprietary DPA programs. Check with your employer—many offer homebuyer assistance benefits.
Explore Homebuyer Programs in Your State
Find down payment assistance and first-time homebuyer grants available in your area.