First-Time Buyer Programs: Down Payment Assistance You Should Know About

The down payment is often the single biggest hurdle between renters and homeowners. The good news: there are more than 2,000 down payment assistance programs available across the United States, and many first-time buyers qualify for at least one without realizing it.

Assistance generally comes in four forms:

1. Grants

True grants don’t have to be repaid. They’re usually capped at a few thousand dollars and often tied to income limits or specific neighborhoods.

2. Forgivable loans

Second mortgages that are gradually forgiven over time — often 5 to 15 years — as long as you continue to occupy the home as your primary residence.

3. Deferred-payment loans

You borrow the funds at low or no interest, and repayment is deferred until you sell, refinance, or pay off the first mortgage.

4. Matched savings programs

You save toward a down payment, and a partner organization matches your contributions on a set ratio.

Where to look:

• Your state housing finance agency — most states run multiple programs
• Local city and county housing programs
• HUD-approved housing counseling agencies
• Employer-assisted housing benefits, especially for teachers, first responders, and healthcare workers

Many programs require a homebuyer education course, which is usually free and often available online. A few hours of class time can unlock thousands of dollars in assistance — one of the highest-return time investments in the homebuying process.