Frequently Asked Questions

Down payment assistance helps first-time home buyers come up with a down payment to purchase a home. Down payment assistance takes multiple forms, including grants, loans, vouchers and more. 

Assistance amounts can range from a few thousand to tens of thousands of dollars, and can be used toward closing costs assistance, and/or principal or reductions.  

To qualify for down payment assistance, you must have not owned a home in the past three years. (Some lenders offer in-house loans that do not have that stipulation.) You must also show proof of a credit score 620 or higher, a steady income, and a healthy debt-to-income ratio. 

Individual programs may have more eligibility requirements, like that you must remain in the home for a specified period of time, ranging from as little as three years up to 10 years. Some programs are limited to certain geographic areas, which could affect your eligibility. You also may be required to take an educational course. 

Although a 20% down payment is great, it is not a requirement. Many mortgages only require a down payment of 3% to 5% of the purchase price, and there are loans and grants available to help cover these costs.

Many programs do not require you to be a first-time homebuyer. HUD’s definition of a first-time buyer is someone who hasn’t owned a home in the past three years, so even if you’ve owned a home before, you may still qualify! 

Many programs typically consider factors such as income, purchase price, and minimum credit score, but limits are often broader and eligibility depends on the program. Several programs support moderate-income households, and some even offer special benefits for first responders, healthcare workers, and educators.