Down Payment Assistance
Bridge the cash gap to your first closing.
State, local, and lender-funded down payment assistance programs that provide second-lien or forgivable funds to cover down payment and closing costs for eligible buyers.
What makes this loan different
- Second-lien and forgivable structures
- Often deferred until sale or refinance
- Pairs with conventional, FHA, VA, and USDA loans
- Income and purchase price limits by county
Who this is built for
- First-time and returning buyers with limited savings
- Buyers in targeted areas or professions
- Households under program income limits
How the assistance is structured
Most programs provide a second mortgage covering a percentage of the purchase price. Some defer all payments until you sell or refinance. Others amortize at a low rate, and a few forgive the balance after a set number of years in the home.
The first mortgage behind it is usually a standard conventional or FHA loan, so your primary financing stays conventional in every sense.
Eligibility basics
Income limits, purchase price caps, a minimum credit score, homebuyer education, and occupancy as a primary residence. Limits vary by county and change annually, so check current figures rather than what you read last year.
What lenders typically ask for
- Income documentation for every household member where the program tests household income
- A homebuyer education certificate, which most programs require
- The program's own application, separate from the mortgage application
- Standard mortgage documentation for the first lien
Requirements vary by lender and by file. This is a general picture of what is commonly requested, not a checklist for a specific loan.
Worth knowing
Limits are on income, price, and place.
Most programs test borrower or household income against a cap, limit the purchase price, and restrict eligible areas. A borrower can be well qualified for the mortgage and still be ineligible for the assistance.
Forgivable and repayable are very different.
Some assistance is a grant, some is a forgivable second lien that forgives over a residency period, and some is simply a second mortgage with payments. Which one is on offer changes the math substantially.
Selling or refinancing early can trigger repayment.
Forgiveness usually depends on occupying the home for a set number of years. Leaving sooner commonly means repaying some or all of the assistance.
Funding runs out.
Many programs operate on funding cycles and close when the allocation is exhausted. Availability confirmed in one month is not availability guaranteed in the next.
See what this program would take in your case.
We are brokers — this program is shopped across hundreds of wholesale lenders, not quoted off one rate sheet. A short application gives us enough to compare real options.
Program availability, terms, guidelines, and documentation requirements vary by lender and are subject to underwriting and change without notice. This is not a commitment to lend.