9 Down Payment Assistance Programs to Help You Buy a Home

Buying your first home can build significant long-term wealth, but coming up with a down payment is often the biggest hurdle—especially if you don't have family financial help.

If saving up for a large down payment feels overwhelming, these 9 programs and loan options can help bring homeownership within reach:

 

1. FHA Loans

• What it is: A government-backed loan through the Federal Housing Administration.
• How it helps: You can put down as little as 3.5%.
• Key benefits: Has looser credit score and income requirements compared to traditional loans. You can also use it to buy a single-family home or a multi-unit property (up to 4 units).

 

2. USDA Loans

• What it is: Mortgages backed by the U.S. Department of Agriculture aimed at developing rural and suburban areas.
• How it helps: Requires 0% down payment.
• Options:
  • Direct Loans: Designed for low- and very-low-income buyers, offering payment assistance and terms up to 33 years.
  • Guaranteed Loans: Designed for moderate-income buyers through participating lenders with a 30-year fixed rate.

3. VA Loans

• What it is: A specialized mortgage program for military veterans, active-duty service members, and eligible surviving spouses.
• How it helps: Requires 0% down payment and no private mortgage insurance (PMI), along with lower closing costs.
   

4. National Homebuyers Fund (NHF) Grants

• What it is: A national program that offers financial grants to buyers needing help with upfront costs.
• How it helps: Provides grants for down payments or closing costs worth up to 5% of the total mortgage amount (which does not need to be repaid).
• Bonus: California residents may qualify for up to 7% through additional state-specific programs (GSFA).
   

5. HUD Good Neighbor Next Door

• What it is: A U.S. Department of Housing and Urban Development (HUD) program for community public servants (K-12 teachers, police officers, firefighters, and EMTs).
• How it helps: Gives a 50% discount off the list price of homes in designated revitalization areas.
• Requirement: You must commit to living in the home as your primary residence for at least three years.

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6. Conventional 97 Loans

• What it is: A standard mortgage option backed by Fannie Mae designed specifically for first-time buyers.
• How it helps: Lets you put down just 3% (funding 97% of the home price).
• Requirement: You must not have owned a home in the past 3 years, have a credit score of at least 620, complete a homebuyer education course, and live in the home as your main residence.
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7. Fannie Mae HomeReady

• What it is: An accessible loan option for low- to moderate-income borrowers.
• How it helps: Requires only 3% down and does not require you to be a first-time homebuyer.
• Flexibility: Allows down payments and closing costs to come from gifts, grants, or non-traditional income sources (like boarder income).
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8. Freddie Mac Home Possible

• What it is: Another 3% down payment program designed for lower-income buyers.
• How it helps: Requires 3% down and offers flexible funding sources.
• Flexibility: Down payment funds can come from family gifts, employer assistance programs, grants, or even "sweat equity" (work you perform on the property yourself).
   

9. Bank-Sponsored Grant Programs

• What it is: Special grants offered directly by major banks (e.g., Bank of America, Chase) and local credit unions.
• How it helps: Many lenders offer grants of up to $10,000 toward down payments or closing costs, often combined with low-down-payment mortgages (3% down).
• Tip: Always ask potential mortgage lenders if they offer proprietary first-time buyer grants or credits.

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Need help with your down payment? Find resources and assistance here!