What are homebuyer assistance programs?

Homebuyer assistance programs are government and nonprofit programs that help make homeownership more affordable through down payment grants, forgivable loans, tax credits, and below-market interest rates. They are offered at federal, state, and local levels.

Do I have to be a first-time buyer for assistance programs?

Many programs are for first-time buyers, defined as someone who has not owned a home in the past 3 years. However, some programs are available to all buyers, especially in targeted areas or for veterans.

How much can I get from down payment assistance?

Down payment assistance programs typically range from $5,000 to $25,000, with some high-cost area programs offering more. Some are outright grants while others are forgivable loans that are forgiven after 5-10 years of residency.

Homebuyer Assistance Programs: Grants, Credits & Down Payment Help

Federal, state, and local programs can save you thousands on your home purchase. Explore down payment grants, tax credits, reduced-rate mortgages, and more.

Types of Homebuyer Assistance

Down Payment Grants

Free money that does not need to be repaid. Many state housing agencies and nonprofits offer grants of $5,000-$25,000+ for qualifying buyers.

Forgivable Loans

Second mortgages that are forgiven after 5-10 years of residency. If you stay in the home, you never pay them back. Common with state HFA programs.

Tax Credits (MCC)

Mortgage Credit Certificates let you claim 20-40% of your mortgage interest as a federal tax credit each year — not just a deduction, a dollar-for-dollar credit.

Below-Market Rate Loans

State housing finance agencies often offer 30-year fixed-rate mortgages 0.25-0.75% below market rates, exclusively for first-time buyers.

Employer Programs

Some employers offer homebuyer assistance as a benefit — including down payment matching, closing cost assistance, or rate buydowns.

Community Programs

Local nonprofits, community land trusts, and Habitat for Humanity offer homeownership programs for income-qualifying families.

Federal Programs

Program	Benefit	Eligibility	Learn More
FHA Loans	3.5% down, flexible credit	All buyers, 580+ credit	FHA Details
VA Loans	0% down, no PMI	Veterans, active duty, surviving spouses	VA Details
USDA Loans	0% down, low fees	Rural/suburban areas, income limits	USDA Details
Good Neighbor Next Door	50% off HUD homes	Teachers, police, firefighters, EMTs	HUD.gov
HomePath (Fannie Mae)	3% closing cost assistance	First-time buyers on Fannie-owned homes	HomePath.com

State Housing Finance Agency (HFA) Programs

Every state has a Housing Finance Agency that offers programs specifically for first-time and low-to-moderate income buyers. Common programs include:

Popular State Programs

California — CalHFA: MyHome Assistance Program (up to 3.5% DPA as deferred loan), CalPLUS with ZIP grant
Texas — TDHCA: My First Texas Home (DPA up to 5%), Texas Mortgage Credit Certificate
New York — SONYMA: Low-interest rate program, Down Payment Assistance Loan (up to $15,000)
Florida — FHFC: Florida Assist (up to $10,000 DPA), Salute Our Soldiers (veterans)
Illinois — IHDA: SmartBuy program, Access Forgivable (up to $6,000 forgiven after 10 years)

How to Find Programs in Your Area

Check Your State HFA

Visit your state housing finance agency website. Search "[your state] housing finance agency" or visit the National Council of State Housing Agencies (NCSHA.org).

Ask Your Lender

Many lenders are approved to offer state DPA programs. Ask specifically about down payment assistance — not all loan officers volunteer this information.

Search Local Programs

Cities and counties often have their own programs. Check your city housing department or use HUD's local homebuying programs search tool.

Explore zero down payment options or check today's rates to start your homebuying journey.

Homebuyer Assistance Programs Explained