Down Payment Assistance Programs for First-Time Buyers
Down payment assistance (DPA) programs help first-time and lower-income buyers cover the down payment and closing costs on a home purchase. They take three main forms — outright grants, forgivable seconds (forgiven after living there a number of years), and deferred-payment seconds (paid back when you sell or refinance). Each state runs its own programs, often with city and county overlays.
Highlights
- •Grants, forgivable seconds, and deferred seconds available
- •Stack with FHA, conventional, USDA, or VA first mortgages
- •Income limits and area-specific eligibility apply
- •First-time buyer status often required (3-year lookback)
- •Homebuyer education usually required
Who it's for
First-time buyers who haven't owned a home in the last 3 years, moderate-income borrowers in higher-cost areas, teachers, firefighters, and other public-sector workers eligible for occupation-specific programs, and buyers in revitalization-target neighborhoods.
Frequently asked questions
How is "first-time buyer" defined?
Most DPA programs use the federal definition: someone who has not owned a primary residence in the last 3 years. Some programs waive this for veterans, single parents, or buyers in target areas.
Do I have to repay the assistance?
Depends on the program: (1) grants — never repaid, (2) forgivable seconds — forgiven over 5–15 years if you stay in the home, (3) deferred seconds — repaid in full when you sell, refinance, or move out.
Can DPA cover closing costs too?
Yes, most programs allow funds to be used for both down payment and closing costs.
What income limits apply?
Income caps vary by program and household size, usually set as a percentage (80–140%) of area median income (AMI).
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Today's mortgage rates
Conventional
5.875%
5.911% APR
FHA
5.250%
5.278% APR
VA
5.250%
5.275% APR
Conv: 80% LTV, 780 FICO. FHA: 96.5% LTV, 680 FICO. VA: 100% LTV, 680 FICO. 30-yr fixed. Your rate may vary.