A Simple Guide to Down Payment Assistance in 2026

Buying a home can feel out of reach for many people, especially because of the upfront cost of the down payment.

However, you don’t always need 20% down—sometimes much less is required, and there are programs that help with the cost.
 

What Is Down Payment Assistance?

Down payment assistance (DPA) programs provide financial help to homebuyers who need help covering these upfront costs. These programs are often run by state or local governments, or non-profit organizations.

The help might come as a grant (money you don’t have to pay back), a loan, or help with closing costs.
 

Who Can Get Down Payment Assistance?

Most DPA programs are designed for first-time homebuyers, but not all. "First-time" usually means you haven’t owned a home in the last three years. Each program has different requirements, but many are meant for people with low or moderate incomes.

Some also help buyers with lower credit scores, lower savings, or those buying in certain neighborhoods, or people who work in certain professions like teachers or first responders.
 

Types of Down Payment Assistance

 

1. Grants: Money you don’t have to pay back.
2. Forgivable Loans: Loans that are erased after you meet certain requirements, like living in the home for a set number of years.
3. Second Mortgages: Loans that you pay back only when you sell or refinance the home, sometimes with no interest.
4. Deferred Loans: Loans with payments postponed until you move, sell, or pay off the first mortgage.

 

Where to Find Down Payment Assistance

There are DPA programs in every state and many cities. Each state has its own housing agency with different types of programs. Some examples include:
 

• Alabama Housing Finance Authority
• California’s MyHome Assistance Program
• Texas Department of Housing and Community Affairs

You can find local programs by searching for “[your state] down payment assistance program” or by checking your state’s housing finance agency website.
 

How Much Help Can You Get?

The amount varies by program and state. Some offer a few thousand dollars, while others may cover your whole down payment and closing costs.
 

How to Qualify

Each program is a little different, but they may look at:
 

• Your income and your household’s income
• Your credit score
• The price of the home you want to buy
• Whether you plan to live in the home as your main residence
• Whether you have taken a homebuyer education class

 

Steps to Get Down Payment Assistance

 

1. Check your eligibility on your state housing website or the HUD website.
2. Find a lender or real estate agent familiar with these programs.
3. Complete any required applications or classes.
4. Submit your documents and wait for approval before you close on your home.

 

Other Tips

You don’t always need a big down payment to buy a home. Some home loans offer low or even zero down payment options.

Programs change from year to year, so always check the latest details.
 

Bottom Line

Don’t let a lack of savings keep you from buying a home. There’s a good chance you can find help with your down payment, especially if you’re a first-time buyer or have a modest income.

Each state has programs with different rules, so do your homework and ask for help.

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