Buying your first home can feel overwhelming, especially when you are trying to save for the upfront costs. Down payment assistance programs can help through grants, forgivable loans, or second mortgage options that reduce the cash you need to close. Eligibility varies by location and income, so we help you compare programs and choose the best fit.
First time homebuyer programs and down payment assistance help reduce the upfront cost of buying a home. Assistance can come as grants, forgivable loans, or a second mortgage that covers part of your down payment and sometimes closing costs, depending on the program in your area.
These programs are often a good fit if saving for a down payment is the main obstacle, or if you want to keep more cash in reserve after closing. Many options are designed for first time buyers, moderate income households, and buyers who meet specific location or occupation guidelines.
You qualify for a primary mortgage first, then the DPA program adds funds to reduce what you need upfront. Most programs require income verification and a homebuyer education course, and some include occupancy rules or a period you must live in the home for the assistance to be forgiven.
Down payment assistance can often be paired with conventional and FHA loans, and sometimes with VA or USDA depending on the program. The key is matching the right first mortgage with the right DPA structure so the combined payment, rates, and repayment terms still make sense.
The biggest benefit is lower cash needed to close, which can make homeownership possible sooner. Some programs also reduce monthly costs through better loan terms or closing cost help, and many include education that helps buyers avoid common mistakes during escrow and after move in.
It depends on your income, credit profile, how much you have saved, and how long you plan to stay in the home. We compare DPA options against standard low down payment loans so you can see the true tradeoffs and choose the path that fits your budget and goals.
Check both the purchase mortgage and the assistance terms before counting on help with upfront costs.
A program may define first-time status using a period without ownership of a principal residence, with specified exceptions. Definitions differ, so obtain the rule from the agency or participating lender. The label on a webpage cannot settle an applicant's status.
Establish whether the support is a grant or a loan, whether interest accrues and when repayment is triggered. Review liens, required occupancy, forgiveness conditions and the effect of refinancing. Assistance that reduces today's cash requirement can still create future obligations.
The first mortgage and the assistance have separate standards that must both be met. Income limits, property location, purchase price, homebuyer education and the lender's participation may all matter. Funding availability can also change; check before relying on a program to complete a contract.
Request a breakdown of the down payment, lender and third-party charges, prepaid items, allowed credits and the approved assistance amount. Confirm any minimum personal contribution and acceptable fund sources. The difference is a transaction-specific figure, not a universal zero-cash promise.
Information reviewed September 6, 2026. Sources: CFPB: Mortgage costs · CFPB: Types of loans.
