# Down Payment Assistance Programs by State: A 2026 Guide
The down payment is the biggest upfront barrier for most first-time home buyers. A 3–5% down payment on a $300,000 home means coming up with $9,000–$15,000 before closing — on top of closing costs. For many buyers, that gap is the only thing standing between renting and owning.
Down payment assistance (DPA) programs exist specifically to close that gap. Thousands of programs operate at the federal, state, county, and city level. Many go unused because buyers assume they will not qualify or simply do not know the programs exist.
Before applying for any program, use [LendingTree]({{AFFILIATE_LINK_LENDINGTREE}}) to compare mortgage offers from multiple lenders. Many DPA programs are lender-specific, and a single platform that aggregates loan options makes it easier to find programs that work together.
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## Types of Down Payment Assistance
DPA programs are not all structured the same way. Understanding the differences helps buyers choose the right option:
**Grants:** Free money that does not need to be repaid. The most favorable form of assistance, though grants typically have stricter income limits and availability constraints. Grant amounts generally range from $2,500 to $10,000.
**Forgivable Loans:** Second mortgages that are forgiven — meaning the balance disappears — if the buyer stays in the home for a specified period (typically 5–10 years). Often treated as a grant for buyers who plan to stay put.
**Deferred-Payment Loans:** Second mortgages with no monthly payment required. The balance is repaid only when the home is sold, refinanced, or the first mortgage is paid off. These add to the total debt but do not affect monthly cash flow.
**Matching Programs:** Some programs match buyer savings — for example, contributing $2 for every $1 the buyer saves up to a cap. These incentivize disciplined saving while providing a significant assistance multiplier.
Most DPA programs require:
– First-time buyer status (often defined as not owning a home in the past three years)
– Income below area median income (AMI) thresholds, typically 80%–120% AMI
– Completion of a homebuyer education course
– Purchase price within program limits
– Use of an approved lender
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## State-by-State Overview
The programs below represent the primary state-level agencies. Most states offer additional county and city programs on top of these.
**California — CalHFA (California Housing Finance Agency)**
CalHFA offers several DPA options including the MyHome Assistance Program, which provides up to 3.5% of the purchase price as a deferred-payment loan. First-time buyers earning below income limits can stack this with a CalHFA first mortgage. Income limits vary by county.
**Texas — Texas State Affordable Housing Corporation (TSAHC)**
TSAHC’s Homes for Texas Heroes and Home Sweet Texas programs offer 3%–5% grants and second mortgage assistance. Teachers, first responders, and veterans get priority but the program is open to all qualifying buyers. No repayment required on the grant option if the buyer uses a TSAHC-approved lender.
**Florida — Florida Housing Finance Corporation**
Florida Housing’s First Time Homebuyer Program provides a 30-year fixed-rate first mortgage plus a second mortgage for down payment assistance of up to $10,000. Income limits apply and buyers must complete an approved homebuyer education course.
**New York — SONYMA (State of New York Mortgage Agency)**
SONYMA’s Achieving the Dream program offers below-market interest rates for first-time buyers earning up to 80% of area median income. The Down Payment Assistance Loan program provides up to 3% of the home price (maximum $15,000) as a 0% interest loan.
**Illinois — Illinois Housing Development Authority (IHDA)**
IHDA’s Access programs provide a fixed $6,000 or $10,000 grant (non-repayable) for down payment and closing costs. Buyers earning up to 120% AMI may qualify, and the program is available throughout the state, not just in targeted areas.
**Georgia — Georgia Dream Homeownership Program**
Georgia Dream provides up to $10,000 in down payment assistance as a second loan at 0% interest, deferred until sale or refinance. Protectors (police, teachers, healthcare workers) can qualify for $12,500.
**Ohio — Ohio Housing Finance Agency (OHFA)**
OHFA’s Your Choice! Down Payment Assistance program provides 2.5% or 5% of the loan amount. Buyers can choose to receive it as a grant (with a slightly higher rate) or a repayable loan (with no rate impact). Income and purchase price limits apply.
**Pennsylvania — PHFA (Pennsylvania Housing Finance Agency)**
PHFA’s K-FIT Down Payment and Closing Cost Loan provides 5% of the purchase price as a forgivable loan, forgiven over 10 years. Buyers must use a PHFA first mortgage and complete homebuyer education.
**Michigan — MSHDA (Michigan State Housing Development Authority)**
MSHDA’s MI Home Loan program offers up to $10,000 in down payment assistance statewide (or $7,500 in non-targeted areas) as a second loan at 0% interest, deferred until payoff or sale.
**North Carolina — NC Housing Finance Agency**
NC’s NC Home Advantage Mortgage provides up to 3–5% of the loan amount as a DPA second mortgage at 0% interest, forgiven after 15 years for buyers who stay in the home.
**Washington — Washington State Housing Finance Commission (WSHFC)**
WSHFC offers down payment assistance programs through a network of approved lenders, including the Home Advantage DPA program providing up to 4% of the loan amount.
**Colorado — CHFA (Colorado Housing and Finance Authority)**
CHFA provides down payment assistance grants and loans ranging from 3% to 4% of the first mortgage. Income limits and purchase price caps apply.
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## How to Find Programs in Your Area
State agencies are not the only source. Many county and city governments run their own programs, sometimes with even more generous terms for targeted geographic areas or buyer profiles.
Resources for finding local programs:
– The **HUD-approved housing counseling agencies** directory at hud.gov
– State housing finance agency websites (listed above by state)
– **Down Payment Resource** (downpaymentresource.com) — a searchable database of DPA programs by zip code
– Your mortgage lender — lenders approved for state programs often have direct knowledge of available assistance
[LendingTree]({{AFFILIATE_LINK_LENDINGTREE}}) connects buyers with multiple lenders, many of whom specialize in first-time buyer programs and have existing relationships with state housing agencies.
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## Lender Comparison for DPA-Compatible Loans
Not all lenders participate in all DPA programs. Here is how the primary first-time buyer lenders compare:
| Lender | DPA Compatibility | Min Credit Score | Notes |
|—|—|—|—|
| [LendingTree]({{AFFILIATE_LINK_LENDINGTREE}}) | Varies by matched lender | Varies | Find lenders who participate in your state’s programs |
| [Rocket Mortgage]({{AFFILIATE_LINK_ROCKET_MORTGAGE}}) | Select programs | 580 (FHA) / 620 (conv.) | Participates in some state DPA programs |
| [Better]({{AFFILIATE_LINK_BETTER}}) | Limited | 620 | Best for buyers with strong credit who need less assistance |
| [New American Funding]({{AFFILIATE_LINK_NAF}}) | Broad participation | 500 (FHA) | Known for manual underwriting; good for complex DPA stacks |
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## Pairing Down Payment Assistance with the Right Loan
Most DPA programs require pairing with a specific first mortgage type — usually FHA, conventional, USDA, or VA. Understanding which loan type fits your profile helps narrow the search to compatible programs. See the [first-time home buyer loan types comparison](/first-time-home-buyer-loan-types/) for a full breakdown of FHA vs. conventional vs. USDA vs. VA.
For buyers unsure how much they can afford even with assistance, the [how much house can I afford guide](/how-much-house-can-i-afford/) runs the income-based numbers.
Getting pre-approved before hunting for DPA programs is the right order of operations — it tells you which price range and loan type to target. The [how to get pre-approved for a mortgage in 2026](/how-to-get-pre-approved-for-mortgage-2026/) guide covers that process.
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## Bottom Line
Down payment assistance programs exist in every state and many cities — but buyers have to look for them. The average eligible buyer leaves thousands in available assistance on the table simply by not knowing these programs exist.
Start with your state housing finance agency, search local databases, and tell your lender you are a first-time buyer actively looking for assistance programs. [LendingTree]({{AFFILIATE_LINK_LENDINGTREE}}) is a practical first step for surfacing lenders who work with DPA programs in your region.