Down Payment Assistance: Free Money to Buy Your Home

Saving for a down payment is the #1 hurdle for first-time home buyers. But did you know there are hundreds of programs that can help?

What is Down Payment Assistance?

Down payment assistance (DPA) programs provide:

• Grants — Money you never have to repay
• Forgivable loans — No repayment if you stay in the home long enough
• Low-interest loans — Affordable second mortgages
• Tax credits — Savings on your tax bill

Who Qualifies?

Each program has its own rules, but common requirements:

• First-time home buyer (or haven’t owned a home in 3+ years)
• Income limits (varies by location and family size)
• Credit score requirements (often 620+)
• Complete a home buyer education course
• Property must be your primary residence

Types of Down Payment Assistance

1. Grants (Free Money!)

• Florida First — Up to $10,000 for down payment + closing costs
• California CHDAP — Up to 3% of loan amount
• Texas DHAP — Varies by area

2. Forgivable Second Mortgages

• 0% interest
• Forgiveness after 5-10 years of living in the home
• No monthly payments

3. Deferred Payment Loans

• No payments while you live in the home
• Due when you sell, refinance, or pay off the mortgage
• Usually 0-3% interest

4. Employer Assistance

• Some employers offer down payment help
• Check with your HR department
• Particularly common in education, healthcare, and government

How to Find Programs

1. State Housing Finance Agencies

Every state has an HFA that administers DPA programs. Google “[Your State] down payment assistance program”

2. Local Governments

Cities and counties often have their own programs, especially for first-time buyers.

3. HUD

The U.S. Department of Housing and Urban Development lists resources at hud.gov

4. Ask Your Lender

Good lenders know the programs in their area and can match you with options.

DPA + Your Loan Type

Down payment assistance works with:

Important Notes

• Combine with other programs — DPA can stack with other assistance
• Income limits — Many programs have maximum income requirements
• Property limits — Some programs cap home price
• First-time buyer — Most require you to be a first-time buyer
• Occupancy — Must be your primary residence

Don’t Forget Closing Costs

Down payment assistance can often cover closing costs too (typically 3-6% of the loan). Ask programs if they cover both.

Ready to Explore Your Options?

Down payment assistance can make homeownership a reality — even if you thought you couldn’t afford it.

Get Pre-Qualified →

Ask about down payment assistance when you apply, and we’ll check what programs you qualify for!