Down Payment Assistance Programs: A State-by-State Starting Point

Many first-time buyers assume a down payment has to come entirely from savings. In reality, there are thousands of down payment assistance (DPA) programs across the country — run by states, counties, cities, and housing agencies — designed specifically to close that gap for eligible buyers.

Common forms DPA takes:

• Forgivable second loans that require no repayment if you stay in the home for a set number of years
• Deferred-payment loans that are repaid only when you sell, refinance, or pay off the first mortgage
• Outright grants that never require repayment at all
• Below-market interest rate loans paired with a first mortgage through a state housing finance agency

Eligibility typically depends on:

• Household income relative to your area’s median
• Whether you’re a first-time buyer, though some programs define this as not having owned a home in the past three years
• The purchase price of the home relative to local limits
• Completion of a homebuyer education course, which many programs require

The best starting point is your state housing finance agency, which typically maintains a directory of programs available in your area, followed by county and city housing departments that often layer additional assistance on top. A lender experienced with these programs can also flag which ones you likely qualify for during pre-approval — before you assume a bigger down payment is your only option. Assistance programs exist precisely because saving 20% up front isn’t realistic for most buyers, and using one doesn’t make you any less of a homeowner.