Grants and Assistance Programs That Can Help You With a Down Payment

2 August 2025

Buying a home is a dream for many, but let’s be real—saving up for a down payment can feel like climbing a mountain with no end in sight. Between rising home prices and the cost of living, pulling together thousands of dollars is no easy feat. But here’s the good news: you don’t have to do it alone!

There are several grants and assistance programs designed to help first-time homebuyers, low-income families, and even certain professionals like teachers or veterans. These programs can make your homeownership dream a reality without draining your savings.

In this guide, we’ll break down some of the best grants and assistance programs available to help you with your down payment. Let’s dive in!

Why Down Payment Assistance Matters

Saving for a down payment is often the biggest barrier to homeownership. Traditional loans require anywhere from 3% to 20% down, depending on the type of loan you qualify for. If you're looking at a $300,000 home, that could mean anywhere from $9,000 to $60,000!

That’s why down payment assistance programs exist—to lighten the load and help more people achieve homeownership. Whether through grants, forgivable loans, or special savings programs, these initiatives can make all the difference.

Types of Down Payment Assistance Programs

Before we get into specific programs, let’s talk about the different types of assistance available. Not all help comes in the same form, so it's important to understand your options:

1. Grants

Grants are free money. Yep, you read that right! You don’t have to pay them back, making them one of the best options for homebuyers.

2. Forgivable Loans

These are loans that can be forgiven after a certain period—usually five to ten years—as long as you meet specific conditions, like living in the home as your primary residence.

3. Deferred Payment Loans

Unlike traditional loans, these don't require immediate repayment. You’ll only need to pay them back when you sell the home, refinance, or move out.

4. Matched Savings Programs

Some programs will match every dollar you save for your down payment, doubling (or even tripling) your savings!

Now that you have a basic understanding, let’s get into some of the best programs available.

Top Grants and Assistance Programs for Down Payments

1. FHA Down Payment Assistance Grants

The Federal Housing Administration (FHA) doesn't provide down payment assistance directly, but many state and local programs work in conjunction with FHA loans. These programs help low-to-moderate income buyers by covering part of their down payment and closing costs.

Check with your state’s housing agency for specific programs in your area!

2. HUD’s HOME Investment Partnerships Program

The U.S. Department of Housing and Urban Development (HUD) funds local programs that offer down payment assistance. The HOME Investment Partnerships Program provides grants to states and local governments, which then distribute the funds to eligible homebuyers.

To qualify, you typically need to meet income requirements and be a first-time homebuyer.

3. National Homebuyers Fund (NHF)

NHF is a nonprofit that provides down payment assistance grants of up to 5% of the loan amount. Best of all? These grants don’t have to be repaid!

They work with FHA, VA, USDA, and conventional loan programs, making this a versatile option for many buyers.

4. Good Neighbor Next Door Program

Are you a teacher, firefighter, law enforcement officer, or emergency medical technician? If so, the Good Neighbor Next Door program from HUD could be for you!

This program gives eligible professionals a 50% discount on a home’s price in designated revitalization areas. While it’s not a direct down payment grant, the savings can significantly reduce the amount you need upfront.

5. Down Payment Assistance Programs by State

Most states offer their own down payment assistance programs. These vary in eligibility requirements, assistance amounts, and repayment rules.

For example:
- California: The California Dream For All Shared Appreciation Loan helps first-time buyers with down payment assistance in exchange for a share of home appreciation.
- Texas: The Texas State Affordable Housing Corporation (TSAHC) offers grants and deferred payment loans.
- Florida: The Florida Housing Finance Corporation provides down payment assistance and closing cost help.

Check with your state housing agency to see what programs are available in your area!

6. USDA Home Loan Program

If you're buying in a rural area, the USDA loan program is worth considering. This government-backed loan allows for zero down payment, making homeownership much more accessible.

Even if you don’t qualify for the zero-down option, some USDA lenders offer grants or additional assistance to help cover down payments and closing costs.

7. VA Loans and Military Assistance Programs

If you're a veteran, active-duty service member, or eligible family member, you may qualify for a VA loan, which requires no down payment.

Additionally, some organizations, such as PenFed Foundation’s Dream Makers Program, provide matching grants to help military families cover their down payment.

8. Employer-Assisted Housing Programs

Some employers offer down payment assistance as part of their benefits package. This is especially common in fields like healthcare, education, and public service.

If you work for a large organization, check with your HR department to see if they offer any homeownership assistance programs.

How to Find and Apply for These Programs

Now that you know what’s out there, how do you take advantage of these opportunities? Here’s a step-by-step guide:

1. Research Your Options – Start by checking national programs, state housing agencies, and local nonprofit organizations for available assistance.
2. Check Eligibility Requirements – Each program has different rules regarding income, credit scores, and location. Be sure you meet the criteria before applying.
3. Get Pre-Approved for a Mortgage – Many programs require you to have a mortgage pre-approval before applying for assistance.
4. Submit Your Application – Follow the application process carefully. You may need to provide income details, employment verification, and homebuyer education certificates.
5. Work With a Knowledgeable Lender – Some lenders specialize in working with down payment assistance programs, making the process smoother.

Final Thoughts

Buying a home doesn’t have to feel impossible. Down payment assistance grants and programs are here to help you bridge the gap and achieve your goal of homeownership. Whether you qualify for a grant, a forgivable loan, or a matched savings program, there’s likely an option that fits your situation.

So, don’t let the down payment scare you away from owning a home. Take advantage of these resources, and you’ll be unlocking your front door before you know it!