Down Payment Assistance Programs: How to Get Up to $18,000 to Buy a Home

Home prices have been rising rapidly across the country, which means down payments are getting bigger too. In many areas, buyers need to save $50,000 or more just to make a down payment.

This creates a tough situation for middle-class families. If you earn around $83,000 to $100,000 or more per year, you might find yourself stuck in the middle.

You may earn too much to qualify for traditional assistance programs, but not enough to easily afford a large down payment on your own.
 

Good News: More Programs Are Available Than Ever

There are currently about 2,000 home-buying assistance programs available across the United States.

According to a recent report from Down Payment Resource, more than half of these programs are now open to buyers who earn six figures ($100,000 or more).

The average benefit from these programs is $18,000, which can be used toward your down payment or closing costs.

Some programs offer even more. For example, the Federal Home Loan Bank of New York Home Buyer Dream Program provides up to $19,500 to eligible borrowers, plus an additional $500 for homeownership counseling.
 

How to Find Programs You Qualify For

The quickest way to find programs in your area is to use an online search tool like the one offered by Down Payment Resource. You can search based on your location and household information to see what's available.

State and local housing agencies run many of the largest programs. These often combine a regular mortgage with additional assistance as a second loan.
 

Important Things to Know Before Applying

Work with the right lender. Many assistance programs are set up as low-interest second mortgages on your home. To access them, you typically need to apply through an approved lender.

Understand the rules. These programs often come with conditions about:
 

• How long you must live in the home
• What happens if you sell or refinance
• Repayment requirements if you move

If you move out of your home before meeting the program requirements, you may need to pay back the full amount of assistance you received. This could eat up any profit you've made on the house.

Some loans are forgivable. The good news is that some programs will forgive the loan entirely after a certain period, essentially giving you free money.

Always verify the details. Once you find a program that looks promising, check the official website of the program administrator to confirm you have accurate information.
 

What Programs Look For

When you apply, program administrators will typically consider:
 

1. Your household income
2. Your credit history
3. The home's location and price
4. Your choice of lender and loan type

Many programs work alongside popular mortgage types like FHA, VA, USDA, and conventional loans. However, the specific requirements vary by program.
 

Education Requirements

Many programs require you to complete a homebuyer education course or counseling session. It's smart to finish this requirement early in the process.

If you wait until you're already under contract on a home, the delay could cause you to lose the deal.
 

Other Ways to Boost Your Down Payment

If you don't qualify for assistance programs, there are other options:
 

• Family gifts: Relatives can give you money for a down payment
• IRA withdrawal: First-time homebuyers can withdraw up to $10,000 from an IRA without paying the usual 10% early withdrawal penalty (though you may still owe income taxes on the amount)

 

The Bottom Line

Down payment assistance can be a great way to achieve homeownership, whether you're a moderate or higher earner. To make the most of these programs:
 

• Search for programs in your local area
• Work with an experienced lender who knows the programs
• Read all the requirements carefully before committing

Remember that the down payment is just one piece of the puzzle—also consider current mortgage rates and your monthly payment budget

With the right preparation, you may be able to get thousands of dollars in assistance to help you buy your first home.

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