Downpayment assistance shortcut: Use Google to find programs near you

It’s hard to generalize down payment assistance programs, because they vary so much by state, county, and even city. Many are at the local level, and they all have different rules. 

This article will help you if you want to know how down payment assistance works. It can also point you toward a few large programs in your state as a starting point. 

But if you want to skip the reading altogether, just google “down payment assistance grants in [state, county, or city].”

This will help you find current programs specific to your area that you might be able to apply for. 

Four types of down payment assistance programs 

Down payment assistance (DPA) programs help homebuyers with loans or grants that reduce the amount they need to save for a down payment. 

There are four main types of DPA:

1. Grants, which are essentially gifts that never have to be repaid
2. Loans (second mortgages) that have to be paid down along with with your main mortgage
3. Loans (second mortgages) with deferred payments, which only have to be paid when you move, sell, refinance
4. Loans (second mortgages) that are forgiven over a set number of years (often five, but up to 15 or 20), and only need repaying if you move, sell, refinance

Some DPA loans are interest-free, some have lower rates than your first mortgage, and others require the same or a higher rate than that.

A quick count of the programs listed above suggests all four types of DPAs are widespread. 

Grants are the most common, but not by much.

Who qualifies for down payment assistance?

Down payment assistance programs are typically meant for first-time home buyers. However, a repeat home buyer often counts as a “first-time buyer” if they haven’t owned a home in the past three years. Other requirements might include income caps and buying a home in a qualified area. 

Every down payment assistance program is a little different. The exact requirements to qualify will depend on where you live and what programs are available. 

That said, many of them have similar guidelines, including: 

• Restricted to first-time home buyers
• Buyers often must have low- to moderate-income 
• The buyer is using the home as their primary residence
• The home is in a “targeted” census tract 
• The DPA is used in conjunction with an approved mortgage program
• You work with an approved mortgage lender for the loan program

Programs vary by zip code, but you’re likely to get more money and qualify more easily if you’re buying in a so-called “target area.” 

Home buyers using down payment assistance save over $17,000 on average

Two-in-three people saving for a house say the down payment is their biggest obstacle to homeownership, according to a 2017 Zillow survey. 

Down payment assistance can get you over that big hurdle quickly. For instance: 

• If you want to buy a $200,000 house 
• And need 3 percent down to qualify ($6,000)
• It would take you 30 months to come up with that by saving $200 a month
• A 2 percent down payment assistance grant or loan cuts that time to just 10 months

These grants are no joke, either. Those who qualify for down payment assistance often see real savings. 

How big of a down payment grant can I get?

DPA programs are something of a zip code lottery. Depending where you want to buy, you could be in line for nothing. Or a few thousand dollars in the form of a second mortgage, or many thousands in the form of a grant, which you never have to repay. 

For example: 

• In Seattle, Washington, you could get up to $55,000 as an interest-free loan that you don’t have to pay until you move, sell, transfer or refinance your home. And that could be decades later
• Or, in Kauai County, Hawaii, you could save $80,148 over the lifetime of your loan

Of course, some homeowners will qualify for more and some less. 

But the RealtyTrac study mentioned above suggests that average savings are in the thousands. So it’s definitely worth your time to at least look into DPA options. 

Are there closing cost grants, too? 

What mortgages can be used with down payment assistance? 

Almost all DPA programs require you to borrow from an approved lender, participating in an approved mortgage program. You may have to sign up for a particular mortgage product.

However, DPA-approved mortgages often include the most popular loan programs, like: 

Why so many different programs and different rules?

All sorts of sources fund DPAs. Money might come from federal, state, city, county and charitable funds. And each of those is free to set its own eligibility criteria and rules.

Alabama

The Alabama Housing Finance Authority’s Step Up program offers to lend you your down payment in a 10-year second mortgage. That deal comes with conditions:

• Your household income can’t exceed $97,300
• You need a credit score of 620 or higher
• Your new first (main) mortgage must be a Housing Finance Authority Preferred conventional loan from the Step Up program

Alaska Down Payment Assistance Programs

The Alaska Housing Finance Corporation (AHFC) can provide a grant toward your closing costs — including your down payment.

You can get up to 4 percent of the purchase price of the home you’re buying. However, you may get only 3 percent if your credit score is particularly low. And you must have a score of 640 or above to be eligible at all.

You must be buying (not refinancing) a single-family home that you’re going to occupy yourself. And you must be financing that with a 30-year, fixed-rate mortgage backed by the Federal Housing Administration (FHA), Department of Veterans Affairs (VA) or U.S. Department of Agriculture.

Arizona Down Payment Assistance Programs

The Arizona Department of Housing’s Home Plus program provides up to 5 percent of the initial balance on your new mortgage. How much you might get will depend on the type of mortgage you choose.

No help is available for those buying in Pima County, and only certain mortgages are eligible in Maricopa County. You’ll need a minimum credit score of 640 to qualify for the program, and for some types of mortgage that needs to be 660.

For you to be eligible, your annual income must be $92,984 or less. And the purchase price of your new home cannot exceed $371,936.

Arkansas Down Payment Assistance Programs

The Arkansas Development Finance Authority (ADFA) has a couple of helpful programs. Its ADFA Move-Up Choice can provide a grant (so you don’t have to directly repay it) of 4 percent of the new mortgage’s opening balance. You can use that for your down payment and other closing costs. Expect to pay a slightly higher mortgage rate than otherwise, because that’s how your grant will be recouped.

If that’s not what you need, the ADFA Down Payment Assistance Program offers between $1,000 and $10,000 in the form of a second mortgage, which is repayable over 10 years. You’ll get cash back to cover the closing costs of that second mortgage.

To be eligible for assistance, your income must be within limits linked to the median income for the county where you’re buying.

California Down Payment Assistance Programs

The California Housing Finance Agency (CalHFA) MyHome Assistance Program provides down payment help for eligible buyers. This takes the form of a second mortgage of up to 3.5 percent of the home’s purchase price, or $10,000 — whichever is less. 

Colorado Down Payment Assistance Programs

The Colorado Housing Assistance Corporation’s (CHAC’s) Down Payment Assistance Program is intended for first-time buyers. And, to qualify, you’ll need to have a low or moderate income compared to others in the area in which you buy.

You need to save up at least $1,000 of your own money (not a gift) toward your down payment to be eligible. If you’re part of the state’s disability program, that $1,000 is reduced to $750.

Connecticut Down Payment Assistance Programs

The Connecticut Housing Finance Authority (CHFA) offers down payment assistance (DPA) in the form of a second mortgage. The interest rate on that will normally be the same as that for your first (main) mortgage. However, some borrowers may be entitled to lower DPA rates.

You have to pay a $200 application fee. And the minimum DPA loan amount is $3,000.  You can normally borrow between 3.0 percent and 3.5 percent of the purchase price of the home. But, if you have significant savings, you must put those toward your down payment until you’re down to your last $10,000.

Delaware Down Payment Assistance Programs

The Delaware State Housing Authority (DSHA) has two DPA programs. The Second Mortgage Assistance Loan (SMAL) can lend you money toward your down payment and closing costs.

And its Advantage 4 program can give you a grant (which you don’t have to repay) for up to 4 percent of the opening balance on your new mortgage.

Washington, DC Down Payment Assistance Programs

D.C.’s Home Purchase Assistance Program (HPAP) helps low- or moderate-income borrowers. Qualified low-income applicants get an interest-free loan of up to $4,000. And they need make no payments on that. The loan falls due when the home is resold or refinanced and must typically be repaid only then.

Qualified moderate-income borrowers can also get $4,000 as an interest-free loan. However, they have to start repaying that after five years.

Florida Down Payment Assistance Programs

The Florida Housing Finance Corporation (FHFC) has three DPA programs:

1. 3-percent HFA Preferred Grant — Those who are eligible may get 3 percent of the home’s purchase price in the form of a non-repayable grant
2. Florida Assist — You may be able to get up to $7,500 as an interest-free second mortgage. You don’t have to make payments on this, because it typically falls due only when you sell or refinance the home
3. Hardest Hit Fund DPA — This is available only to residents of certain counties. It lends up to $15,000 interest-free for five years. But, each year, 20 percent of the loan is forgiven. So you pay nothing, providing you stay in the home that long

Georgia Down Payment Assistance Programs

The Georgia Dream Homeownership Program (GDHP) is principally a first time home buyer down payment assistance program. However, those who are not first-time buyers may still qualify if they are buying in certain “target” counties (see below).

You must contribute $1,000 of your own money toward your down payment, but can then get $5,000 — or $7,500 if you have a qualifying disability or work in certain key “PEN” occupations. And, if you are eligible under the first-come-first-served Hardest Hit Fund, you might get $15,000. There are eligibility caps on household earnings and home purchase prices.

Hawaii Down Payment Assistance Programs

Idaho Down Payment Assistance Programs

The Idaho Housing and Finance Association (IHFA) runs two DPA programs.

Good Credit Rewards is a 10-year second mortgage and is available to those with credit scores of 640+ or 680+, depending on the type of first mortgage you choose.  Its interest rate is higher than the main mortgage, and there are caps on the amount you can borrow as well as rules about how much you must personally contribute to your down payment.

The second program is called the HOME Down Payment Closing Cost (DPCC) Assistance. At the time of writing, this “is suspended until further notice.”

Illinois Down Payment Assistance Programs

The 1st Home Illinois program offers a non-repayable grant up to $7,500 to those buying a home in Boone, Cook, DeKalb, Fulton, Kane, Marion, McHenry, St. Clair, Will or Winnebago counties. As the name implies, you must be a first-time buyer or not have owned a home in the last three years.

You’ll have to put up $1,000 or 1 percent of the purchase price (whichever is greater) yourself. And you must be buying an existing home: New-builds are excluded.

Indiana Down Payment Assistance Programs

The Indiana Housing and Community Development Authority’s (IHCDA) has two programs that offer a down payment assistance grant (not repayable) of up to 3.5 percent of the home’s appraised value or purchase price.

Helping to Own (H2O) is intended for first-time buyers, except in some target areas, while Next Home (NH) is open to those who already own a home. You’ll need a minimum credit score of 640-660, depending on the type of mortgage you choose. And some income limits apply.

Iowa Down Payment Assistance Programs

The Iowa Finance Authority (IFA) has two DPA programs that offer $2,500 for down payment and closing costs assistance. The FirstHome Plus program is for first time buyers and those who’ve not owned a home in the last three years, while the Homes for Iowans program is available to both first-time and repeat homebuyers.

Both have eligibility criteria, including a minimum credit score of 640, and caps on household income and the home’s purchase price.

Kansas Down Payment Assistance Programs

The Kansas Housing Resources Corporation (KHRC) has a first time home buyer down payment assistance program. However purchases within the city limits of Topeka, Wichita, Lawrence and Kansas City and in Johnson County are not eligible for help.

If you qualify, you could get a loan of 15-20 percent of the purchase price, depending on your income. And that loan should be progressively forgiven over time, meaning it could end up costing you nothing. One barrier: You yourself must make a minimum investment of 2 percent of the purchase price.

Kentucky Down Payment Assistance Programs

The Kentucky Housing Corporation (KHC) usually has three down payment assistance programs (DPAs). However, at the time of writing, one (the Hardest Hit Fund DPA) is unavailable. The two remaining ones are:

• Regular DPA — Borrow up to $6,000 over 10-years with interest of 5.5 percent (that’s $65.12 monthly, if you borrow the maximum) at the time of writing.
• Affordable DPA — Borrow up to $4,500 over 10 years with interest of 1.0 percent. But you must be within certain income limits to qualify.

Louisiana Down Payment Assistance Programs

The Louisiana Housing Corporation’s (LHC’s) LHC Choice Conventional Program, LHC Preferred Conventional Program and Market Rate GNMA Program all provide up to 4 percent down payment assistance for eligible borrowers.

You’ll need a minimum credit score of 640 to qualify, and to meet household income limits that vary between programs. LHC Choice can offer an additional 2 percent to cover closing costs and prepaid items.

The Delta 100 program applies only to first-time buyers purchasing in Caldwell, Catahoula, Concordia, East Carroll, Franklin, Madison, Morehouse, Pointe Coupee, Richland, Tensas, West Carroll, and Ouachita (excluding Monroe). It offers 30-year mortgages with no mortgage insurance at just 2 percent fixed interest rate. You have to put down the lesser of 1 percent of the purchase price or $1,500 out of your own money. But you can get a grant of up to 3 percent toward your closing costs.

Maine Down Payment Assistance Programs

The Maine State Housing Authority’s (MSNA’s) First Home Loan Program is aimed at first-time buyers and those who’ve not owned a home within the last three years.

You get up to $3,500 toward your down payment and closing costs as a non-repayable grant. But that will be recouped by your lender through a slightly higher mortgage rate. Eligibility criteria include an unspecified minimum credit score and caps on your household income and home purchase price.

Maryland Down Payment Assistance Programs

The Maryland Department of Housing and Community Development’s (MDHCD’s) Down Payment Assistance and Partner Match Programs provide three forms of assistance:

1. Zero-percent interest loans, which typically become payable only when your sell the home or refinance. So there are no monthly payments
2. Forgivable loans, which are typically forgiven a bit at a time over several years. So you usually pay nothing unless you move or refinance before the time it takes to fully forgive the loan expires
3. Cash grants, which never have to be repaid. These are provided only by MDHCD’s partners

Massachusetts Down Payment Assistance Programs

If there is such a thing as a statewide down payment assistance program in Massachusetts, it’s a closely guarded secret. Still there are programs run by cities and counties that do the same job.

Michigan Down Payment Assistance Programs

Minnesota Down Payment Assistance Programs

The Minnesota Housing Finance Agency (MHFA) provides two types of down payment assistance loans to eligible borrowers:

• Monthly Payment Loan — Borrow up to $12,000 at the same rate you pay on your first mortgage. Pay that down each month over 10 years
• Deferred Payment Loan — First-time buyers only can borrow up to $8,000 ($10,000, if you’re buying in a target area) free of interest. You make no payments, typically until you finish paying down or refinance your mortgage or sell the home.

Mississippi Down Payment Assistance Programs

Mississippi Home Corporation’s Smart Solution Mortgage comes in two flavors:

• Smart Solution Second — Lets you borrow your 3-percent down payment as a 10-year second mortgage, which has the same interest rate as your first mortgage
• Smart Solution Plus — You get a 4-percent cash advance in the form of a grant, which you don’t have to repay

Both those require you to have a credit score of at least 620, and your household income cannot exceed $80,000 a year.

Missouri Down Payment Assistance Programs

The Missouri Housing Development Commission (MHDC) provides down payment assistance for both first-time and repeat buyers.  What’s on offer is a second-mortgage loan of up to 4 percent of the home’s purchase price. The good news is that loan will be forgiven after 10 years, providing you don’t move, sell, refinance or pay off your first mortgage during that time.

To qualify, your income must be below certain limits, which vary across different areas. You also can’t buy a single-family home with a purchase price over $303,231 (duplexes $388,245).

Montana Down Payment Assistance Programs

NeighborWorks Montana helps households with incomes at or below 125 percent of your county’s median income, taking into account family size. However, it only operates in counties that lack similar programs, so you need to check its website (link below).

More generous assistance is available to certain families on incomes below 80 percent of their county’s median. But even higher-earning borrowers (up to 120 percent of median income) can buy a home with as little as 1 percent down.

Nebraska Down Payment Assistance Programs

The Nebraska Investment Finance Authority (NIFA) provides assistance of up to 5 percent of the home’s purchase price for first-time buyers and those who’ve not owned a home in the past three years.

This takes the form of a 10-year second mortgage with a “very low” interest rate. There are caps on the home’s purchase price of $225,000 or $250,000, depending where you want to live. And there are limits on your household income that vary by your household’s size.

Nevada Down Payment Assistance Programs

The State of Nevada’s Home Is Possible Down Payment Assistance Program can provide a grant (not repayable) of up to 5 percent of your loan amount. And there are no asset limits or first-time purchaser rules.

To be eligible, your qualifying income must be below $98,500 and your credit score must be 640 or above. And the purchase price of the home must be under $400,000. You have to pay a one-time fee of $675.

New Hampshire Down Payment Assistance Programs

The New Hampshire Housing Finance Authority’s Home Flex Plus program can provide up to 3 percent in cash to assist with your down payment and closing costs. And it’s a grant, so you don’t have to repay a cent.

The main hurdle for you to clear is that your income can’t exceed $116,300.

New Jersey Down Payment Assistance Programs

New Mexico Down Payment Assistance Programs

The New Mexico Mortgage Finance Authority offers help with closing costs and down payments to first-time buyers. It provides up to $8,000 as a 30-year second mortgage at a relatively low interest rate.

There are caps on household incomes and home purchase prices. But those may be higher if you’re buying in a target area.

New York Down Payment Assistance Programs

There are no statewide down payment assistance (DPA) programs in New York but you may be able to find a local option.

North Carolina Down Payment Assistance Programs

North Dakota Down Payment Assistance Programs

Ohio Down Payment Assistance Programs

The Ohio Housing Finance Agency has a down payment assistance program through its MyOhioHome.org resource. It provides either 2.5 percent or 5.0 percent of the home’s purchase price.

This comes in the form of a loan, which is forgiven after seven years. Sell, transfer or refinance before then, and you’ll have to repay the loan. You’ll need a credit score of 660 or better. And limits apply on incomes and purchase prices.

Oklahoma Down Payment Assistance Programs

The Oklahoma Housing Finance Agency offers its OHFA Homebuyer Down Payment Assistance program. That provides down payment assistance loans to eligible borrowers using a 30-year fixed-rate mortgage. Those secondary loans can be 3.5 percent or 4.0 percent of the primary mortgage amount.

To qualify, you’ll likely need a credit score of 640 or better. And your household income will be capped at amounts that vary according to family size and the county of purchase. There are also limits on the purchase price of the home you’re buying, most commonly up to $453,100. 

Oregon Down Payment Assistance Programs

The Oregon Housing and Community Services (OHCS) is involved in down payment assistance programs for first-time buyers. They’re intended for “low-and very low-income families and individuals, with particular focus on underserved populations.” Up to $15,000 may be available.

OHCS appears to have outsourced administration of the program to various agencies across the state. So it’s possible rules, thresholds and caps may vary between those.

Pennsylvania Down Payment Assistance Programs

Rhode Island Down Payment Assistance Programs

The Rhode Island Housing department offers a down payment assistance program for first-time buyers purchasing in Cranston, East Providence, Pawtucket, Providence, Warwick and Woonsocket. If you’re eligible, you can get up to $7,500. That’s a “forgivable” loan. That means you should owe nothing after five years, providing you stay in your home that long, and don’t sell the property or refinance the mortgage during that time.

You can’t borrow more than $510,400 for a one- to four-family home or eligible condominium. And your household income must be below $87,360 if you’re in a 1-2 person household. If your household comprises three or more people, the income cap is $101,920.

South Carolina Down Payment Assistance Programs

Besides being a mouthful, the South Carolina State Housing Finance and Development Authority First-Time Home Buyer Mortgage Loan Program is intended to help low-to-moderate income families and individuals who are purchasing a home for the first time.

South Dakota Down Payment Assistance Programs

The South Dakota Housing Development Authority (SDHDA) offers down payment assistance to first-time and repeat buyers alike.

If you’re eligible, you could receive a “gift” (grant) from the state of up to 3 percent of your opening mortgage balance. Actually, you’ll end up repaying that gift through a slightly higher mortgage rate. But there are few obvious strings besides that. There are caps on household incomes and home purchase prices that your lender will explain to you.

Tennessee Down Payment Assistance Programs

The Tennessee Housing Development Agency has two down payment assistance programs, Great Choice Plus and HHF-DPA. Both provide help in the form of interest-free loans that only fall due when you move, sell your home, transfer it or refinance. And you make no monthly payments on it.

Great Choice Plus can provide you up to 5 percent of the home’s purchase price. HHF-DPA only applies in certain zip codes, and offers up to $15,000 regardless of the purchase price.

Texas Down Payment Assistance Programs

My First Texas Home is a program run by the state’s department of housing and community affairs. It can help those who are first-time buyers or who haven’t owned a home in the previous three years.

Utah Down Payment Assistance Programs

Vermont Down Payment Assistance Programs

The Vermont Housing Finance Agency’s (VHFA’s) ASSIST Second Mortgage is open only to first-time buyers. It can provide up to $5,000 toward your down payment and closing costs.

That comes in the form of an interest-free, 30-year second mortgage. But you don’t have to make any monthly payments. The loan typically falls due only when your first mortgage ends: normally, when you pay it off, refinance or sell your home.

Virginia Down Payment Assistance Programs

The Virginia Housing Development Authority has a program just for first-time buyers. It offers a non-repayable grant of up to 2.5 percent of the home’s purchase price.

Washington Down Payment Assistance Programs

The Washington State Housing Finance Commission (WSHFC) has a range of nine down payment assistance (DPA) programs. Help ranges from up to $10,000 or 4 percent of the first mortgage’s opening balance right to up to $55,000 for buyers in Seattle.

All these come in the form of a second mortgage. But you don’t have to pay that. It becomes due only “upon sale, transfer, non-occupancy or refinance” of the property.

West Virginia Down Payment Assistance Programs

The West Virginia Housing Development Fund offers help with down payments and closing costs. The amount you can get ranges from up to $5,000 to up to $10,000, depending on the mortgage you choose and the size of the down payment you’re going to make.

The help comes in the form of a 15-year second mortgage. At the time of writing, that loan has a very low interest rate of 2 percent.

Wisconsin Down Payment Assistance Programs

The Wisconsin Housing and Economic Development Authority (WHEDA) has a program called Capital Access Advantage. This provides up to $3,500 toward your down payment and closing costs.

Wyoming Down Payment Assistance Programs

The Wyoming Community Development Authority (WCDA) has two down payment assistance (DPA) programs. Both provide a loan of up to $10,000.

You’ll need a credit score (FICO) of 620 or better, and must contribute at least $1,500 toward your purchase, though that may be a gift. The DPAs are:

1. Home$tretch DPA — 0-percent interest rate (0.080 percent APR) with no monthly payments, due only “upon sale of the home, refinance or 30 year maturity”
2. Amortizing DPA — Paid down in full with low monthly payments over 10 years