Down Payment Assistance

  • Purchase

Multiple programs available. Some programs are for both first-time buyers as well as repeat-buyers without income or location restrictions. Assistance can be utilized for closing costs as well as for down payment. You can get DOWN PAYMENT ASSISTANCE even if you have enough of your own money and just choose not to use it.

Make Homeownership Possible

DOWN PAYMENT Assistance can be used as the minimum required down payment for FHA or Conventional mortgage loans. Depending on the Down Payment Assistance program and assistance amount, the down payment assistance funds can also be used for closing costs.

Home prices keep rising which makes the down payment amount needed increase too. If you can afford to make the payment, DOWN PAYMENT ASSISTANCE could be the key to your new home.

There are many programs available. The DOWN PAYMENT ASSISTANCE programs range from fall into 3 categories of Grant, Repayable, or Forgivable with interest rates from 0% to market rates over a variety of amortization schedules.

Find out how you can get up to $100,000 for your down payment and closing costs today.

down payment assistance, homebuyer grants, first-time homebuyer assistance

What is Down Payment Assistance?

Down Payment Assistance (DPA) programs help homebuyers with the funds needed for a down payment and closing costs—two of the biggest hurdles to homeownership.

closing cost assistance

Financial Support

DPA programs provide financial assistance ranging from $5,000 to $100,000 or more depending on your location and program eligibility. This money can be used for the down payment and closing costs.

FHA down payment assistance

Various Assistance Types

Assistance can come in various forms, including grants, forgivable loans, deferred payment loans, or low-interest loans. Many programs offer terms that don’t require monthly repayment.

low down payment mortgage

Program Flexibility

Programs are available nationwide through state and local governments, nonprofit organizations, and some private institutions. Each has its own requirements and benefits tailored to specific homebuyer needs.

Why Down Payment Assistance Matters

For many Americans, saving enough for a down payment is the single biggest barrier to homeownership. Research shows that it takes the average renter approximately 6.5 years to save enough from their own funds for a down payment on a median-priced home.

DPA helps bridge this gap, making homeownership possible much sooner. With DPA, qualified buyers can purchase a home with little to no money down, allowing them to build equity faster rather than continuing to pay rent.

Eligibility Requirements

While requirements vary by program, most Down Payment Assistance programs share these common eligibility criteria:

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First-Time Homebuyer Status - Not Required

Many programs require you to be a first-time homebuyer, defined as someone who has not owned a home in the past three years. There are many Down Payment Assistance programs available for repeat buyers.

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Income Limits - No Income Limits

Most programs are designed to help low to moderate-income households and have maximum income limits based on your area’s median income. However, there are many Down Payment Assistance programs with no income limits.

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Credit Score Requirement

While requirements vary by program, with some eligibility requires a minimum credit score of 600 or higher.

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Home Purchase Price Limits - Not Necessarily

Some programs limit the purchase price of the home to ensure assistance goes to modest, reasonably-priced homes. However, there are programs that do not have a purchase price limit.

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Homebuyer Education

Many programs require completion of a homebuyer education course to ensure you’re prepared for homeownership.

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Primary Residence Requirement

There are some programs that will allow for you to purchase a duplex and count the rent on the other side towards your qualifying income.

Documentation You'll Need

The list of documentation items shown below is a good general list. However, based on your borrower profile overlayed with the specific loan program underwriting guidelines, you may need to provide additional information. In some circumstances, you may not need to provide the entire list of items. Speak with Rodney Rose, your trusted loan officer, for your specific documentation needed.

  • Tax returns - You will need to fill in a Form 4506-T, and provide your tax forms (the last 2 years should suffice).

  • Pay stubs, W-2s, 1099's, K-1's, or other proof of income -These include your most recent 1 month of pay stubs. If you are self-employed you must provide the two most recent tax returns as well as a year-to-date profit and loss statement. If you file a separate business tax return, you will need to provide the most recent 2 years along with a year-to-date profit and loss statement.

  • Bank statements and other assets - Lenders need your most recent 2 months bank statements and may request proof of your retirement accounts, assets, as well as other investment accounts.

  • Credit history and FICO score - Your credit report will be obtained which will provide details of your credit payment history, including any episodes of bankruptcies or foreclosures.

  • Gift letters - If any friend or family member wants to help you with the down payment or closing costs by offering you some cash you must provide a “gift letter” which states that the money is a gift and not a loan.

  • Photo ID - Provide a government issued ID with photo such as a driver's license or passport.

  • Renting history - Your history as a tenant on rent to guarantee you can pay your rent bills on time.

  • Co-Borrower or Co-Signor - If a Co-Borrower or Co-Signor is used in qualifying. You will need to provide all of the same items for them also.

  • Homebuyer education class certificate - You may be required to attend an online homebuyer class and obtain a certificate of completion for eligibility with some programs.

  • Purchase Agreement - Legally binding contract between a buyer and a seller that outlines the terms and conditions of a property sale.

Down Payment Assistance Program Sources

There are hundreds of Down Payment Assistance programs throughout the country. The Assistance amount and eligibility requirements vary by program. Here’s an overview of the major types of programs available:

Federal Programs

Nationwide assistance programs backed by federal agencies

State & Local Programs

Programs specific to your state or local community

City & County Programs

Many local governments offer down payment assistance programs specifically for their residents.

Community Development Corporations

Nonprofit organizations that often provide down payment assistance in specific neighborhoods.

Professional Programs

Programs for specific occupations or groups

Good Neighbor Next Door

For teachers, firefighters, law enforcement, and EMTs, offering homes at 50% discount in revitalization areas.

Employer Assisted Housing Programs

Some employers offer down payment assistance as an employee benefit.

Union-Sponsored Programs

Some labor unions offer homebuyer assistance programs for their members.

State Housing Finance Agency Programs

Most states offer down payment and closing cost assistance through their Housing Finance Agency.

Program Availability: Down payment assistance programs vary by location, and availability can change based on funding. The best way to find current programs you qualify for is to consult with a mortgage professional who specializes in these programs. They can help you navigate the options and find the best fit for your specific situation.

Make Homeownership Possible with Down Payment Assistance

Start your free consultation today and see how much assistance you qualify for!

Frequently Asked Questions

How much down payment assistance can I receive?

The amount of assistance varies widely based on the program, location, and your eligibility. Some programs offer a few thousand dollars, while others may provide up to $100,000 or more. State and local programs often offer between $5,000 and $10,000, but this can vary significantly.

Do I have to repay down payment assistance?

It depends on the program. Some offer grants that never need to be repaid. Others provide forgivable loans that are forgiven if you stay in the home for a certain period (often 5–10 years). Some programs offer deferred payment loans that must be repaid when you sell, refinance, or pay off your mortgage, and some provide standard loans with monthly payments.

Can I use down payment assistance with any mortgage?

Not always. Many down payment assistance programs are designed to work with specific mortgage products. For example, some may only be available with FHA loans, while others work with conventional, VA, or USDA loans. Your mortgage professional can help match you with compatible programs.

How long does the application process take?

The timeline varies by program, but you should generally allow for extra time compared to a standard mortgage. Some programs can be processed alongside your mortgage in 30–45 days, while others might take additional weeks. Starting the process early is always recommended.

Will down payment assistance affect my offer when buying a home?

It can. Some sellers or agents may have concerns about down payment assistance programs causing delays or complications at closing. Having a pre-approval letter and working with a knowledgeable real estate agent who can educate the seller about the program can help overcome these objections.

Can I combine multiple down payment assistance programs?

Sometimes. Some homebuyers successfully stack multiple forms of assistance, but program rules vary. Some explicitly prohibit combining with other programs, while others may allow it. A mortgage professional experienced with down payment assistance can help you navigate these possibilities.

© Copyright 2025 by E Mortgage Capital. Inc.

Notice To Texas Loan Applicants: Consumers wishing to file a complaint against a mortgage banker, or a licensed mortgage banker residential mortgage loan originator, should complete and send a complaint form to the Texas Department of Savings and Mortgage Lending, 2601 North Lamar, Suite 201, Austin, TX 78705. Complaint forms and instructions may be obtained from the department’s website at www.sml.texas.gov.

A toll-free consumer hotline is available at 1-877-276-5550. The department maintains a recovery fund to make payments of certain actual out of pocket damages sustained by borrowers caused by acts of licensed mortgage banker residential mortgage loan originators. A written application for reimbursement from the recovery fund must be filed with and investigated by the department prior to the payment of a claim. For more information about the recovery fund, please consult the department’s website at www.nmlsconsumeraccess.org

Loan Officer at E Mortgage Capital, Inc. 3750 S Susan Street Santa Ana, Ca. 92704. NMLS#1416824 NMLS#1396861 DRE#00853403. Equal Housing Opportunity Lender. https://www.nmlsconsumeraccess.org. For State Requirements, go to https://www.emortgagecapital.com/licensing.