Down Payment Assistance Programs That Reduce Upfront Costs
Down payment assistance can help qualified homebuyers lower the cash needed at closing. Explore available programs, see what you may qualify for, and understand how assistance can fit into your home purchase plan
How Down Payment Assistance Works
Your Down Payment Assistance Path
Here’s how down payment assistance typically fits into the home buying process:
- Identify programs available in your purchase area
- Confirm income, purchase price, and program requirements
- Estimate how much assistance may reduce your upfront costs
- Combine assistance with a mortgage option that fits your goals
Down payment assistance programs are designed to help eligible homebuyers cover part of their down payment and, in some cases, closing costs. These programs are often offered through state, local, or community organizations and can make homeownership more accessible by reducing upfront financial barriers.
Assistance may be provided as a grant, a low-interest loan, or a deferred payment loan that does not require repayment until the home is sold or refinanced. Program rules and benefits vary based on location and buyer qualifications.
Types of Down Payment Assistance Programs
Down payment assistance can come in several forms, depending on the program and location:
- Grants that do not require repayment
- Deferred loans with no monthly payments
- Low-interest loans with affordable repayment terms
- Closing cost assistance paired with down payment support
Who Qualifies for Down Payment Assistance?
Eligibility for down payment assistance programs depends on several factors, which may include:
- Household income limits
- Purchase price limits
- Property location
- Buyer status, such as first-time or repeat buyer
- Occupancy requirements
Programs Available in States We Serve
Each state has its own housing finance agency that administers down payment assistance programs. The programs below are among the most widely used in each state we are licensed in. Eligibility, income limits, and available amounts change regularly. Confirm current program details with us before applying.
- Oregon Bond Residential Loan Program: below-market interest rates paired with down payment assistance for eligible buyers
- Oregon Down Payment Assistance: deferred second mortgage to cover part of the down payment
- Income and purchase price limits apply. First-time buyer requirement for some programs.
- MyHome Assistance Program: deferred-payment junior loan for down payment and closing costs
- Dream For All Shared Appreciation Loan: designed for first-generation buyers, subject to program availability
- Must be combined with a CalHFA first mortgage. Income limits apply.
- Home Advantage DPA: second mortgage for down payment, available statewide
- House Key Opportunity: below-market rate loans for income-qualified buyers
- Homebuyer education course required for most programs.
- First Loan Program: competitive rate mortgage paired with down payment and closing cost assistance
- Second Mortgage Assistance: deferred second mortgage for qualified buyers
- Income limits and credit score minimums apply by program.
- My First Texas Home: down payment and closing cost assistance for first-time buyers statewide
- My Choice Texas Home: available to repeat buyers as well as first-time buyers
- Both programs paired with a 30-year fixed mortgage. Income limits apply.
- Florida Assist: up to $10,000 in assistance as a deferred second mortgage with no monthly payment
- Florida HLP Second Mortgage: $10,000 assistance with a low monthly payment option
- Must be paired with a Florida Housing first mortgage. Buyer education may be required.
- Montana Housing Regular Bond Program: below-market rate mortgages with down payment assistance
- MBOH Plus 0% Deferred Down Payment Assistance: second mortgage with no monthly payment
- Income and purchase price limits apply by county.
Program names, amounts, income limits, and availability change regularly. The programs listed above reflect commonly available options as of the time of publication. Confirm current eligibility and program status with Mortgage Marketplace before applying. This is not a commitment to lend or a guarantee of program availability.
IS DOWN PAYMENT ASSISTANCE RIGHT FOR YOU?
Down payment assistance can be helpful if saving for a large down payment feels challenging or if you want to keep more cash available after closing. These programs may reduce the amount of money needed upfront, but they can also come with specific requirements or long-term considerations.
Understanding both the benefits and limitations allows you to make a confident decision that supports your homeownership goals.
Frequently asked questions
Common questions about how down payment assistance works, who qualifies, and how to combine it with a home loan
1. What is down payment assistance and how does it work?
2. Do I have to be a first-time buyer to qualify for DPA?
Not always. Many programs are open to first-time buyers only, which is typically defined as someone who has not owned a primary residence in the past three years. However, some programs such as My Choice Texas Home in Texas or House Key in Washington are available to repeat buyers as well. Eligibility depends on the specific program and state. We can help you identify which programs you qualify for based on your situation.
3. Can I combine down payment assistance with an FHA or VA loan?
Yes, in many cases. Most state DPA programs are designed to work alongside FHA, VA, USDA, and conventional mortgages. The DPA typically acts as a second mortgage or grant layered on top of your primary loan. Some programs require a specific first mortgage product so compatibility depends on the program. We help match the right DPA program to your loan type during the review process.
4. Does down payment assistance have to be paid back?
5. Are there income limits for down payment assistance programs?
Yes. Most DPA programs set income limits based on household size and the county or area where you are buying. Some programs also set a maximum purchase price for the property. Limits vary significantly by state and program and are updated periodically. We check current income and purchase price limits for each program during your review.
6. How much down payment assistance can I get?
7. Does using DPA affect my mortgage interest rate?
It can in some cases. Certain DPA programs require you to use a specific first mortgage product which may carry a slightly different rate than a standard loan. In other cases the DPA is layered onto a market-rate first mortgage with no impact on your rate. Some programs like the Oregon Bond Program offer a below-market first mortgage rate as part of the package. We compare the full cost of each option so you can weigh the trade-offs clearly.
8. Is down payment assistance available in all states Mortgage Marketplace serves?
Not Sure If You Qualify for Down Payment Assistance?
We review your income, purchase area, and loan type to find the programs that are a real match for your situation. Available in OR, CA, WA, ID, TX, FL, and MT.
EXPLORE
DOWN PAYMENT
ASSISTANCE OPTIONS
Down payment assistance availability and amounts depend on your income, location, and purchase details. Start with a personalized review to see which programs may help reduce your upfront costs and cash needed at closing.
