Down Payment Assistance Programs in the USA: State-by-State Help
Jun 19, 2025
If you dream about owning a home, yet face challenges with your down payment, then you are one of many in the same situation. Many people find themselves in this situation with similar concerns and available solutions. The main challenge first-time homebuyers face when pursuing homeownership revolves around funding a substantial down payment rather than finding an appropriate residence.
Down Payment Assistance Programs (DPAs) operate throughout the United States to assist home buyers by decreasing their initial purchase expense. Down Payment Assistance Programs provide eligible applicants opportunities to obtain grants, low-interest loans and forgivable loans with matching savings opportunities to fund their down payment and closing expenses.
Top Down Payment Assistance Programs Across the USA
People residing in Texas or California, as well as first-time buyers and veterans, can access programs that help them transition from rental to ownership. The following list provides information about major DPA initiatives operating at the state level all across the USA:
| State | Type of Assistance | Key Eligibility |
|---|---|---|
| California | CalHFA | MyHome Assistance Program |
| Texas | TDHCA My First Texas Home | Grant or 2nd lien loan |
| Florida | Florida Assist (FL Assist) | Zero-interest second mortgage |
| New York | SONYMA Down Payment Assistance Loan | Forgivable loan |
| Illinois | IHD Access Forgivable | Forgivable loan over 10 years |
| Georgia | Georgia Dream Homeownership Program | 0% interest second mortgage |
| Arizona | HOME+PLUS Assistance Program | Grant |
| Colorado | CHFA Down Payment Assistance Grant | Grant |
| North Carolina | NC Home Advantage Mortgage | Deferred loan |
| Michigan | MSHDA Down Payment Assistance | Loan (repayable when home sold/refinanced) |
How Do Down Payment Assistance Programs Work?
Programs offer different benefits to eligible applicants, including free money grants and forgivable loans or deferred loans and matched saving programs.
- You get free financial assistance from grants that do not require any repayment.
- The government gives Forgivable Loans that cancel mortgage obligations, when you remain in the house for a specified term of 5 to 10 years.
- The payment of deferred loans occurs exclusively through real estate sale revenue, mortgage refinancing or payoff.
- The Matched Savings program lets participants receive contributions from both state agencies and non-profit organizations.
Common Eligibility Criteria
While each state and program has different requirements, here are some of the most common requirements:
- Be a first-time homebuyer (generally defined as not having owned a home in the past 3 years)
- Meet income and purchase price requirements
- Occupy the home as your primary residence
- Take a homebuyer education course
- Minimum credit score (typically 620–660+)
How to Find the Right Program for You?
- Go to your state housing agency website.
- Contact local housing nonprofits or the city housing department.
- Contact your lender, many are affiliated with DPA programs.
- Utilize tools such as HUD's directory to locate local resources.
- Utilize resources such as HUD's directory to discover local resources.
Final Thoughts: People can achieve home ownership despite what their savings indicate through appropriate down payment assistance programs. Using the right down payment assistance program enables you to keep thousands of dollars in your pocket for a stress-free move into ownership.
If you're thinking about buying soon, now's the perfect time to explore our options.
