Unlocking the American Dream, One Home at a Time
Find the down payment assistance you actually qualify for
Down payment assistance is money from a state agency, city, county, nonprofit or lender that covers part of your down payment and closing costs. Complete 15 short steps and we'll show you the programs whose published rules match your situation — grants, forgivable seconds, deferred seconds and repayable seconds, clearly labeled so you know what has to be paid back.
AI answers are general education, not a loan approval or offer of credit.
Which state are you buying in?
Assistance is awarded by state, county and city — location is the single biggest filter.
Simply Approved Mortgages LLC arranges residential mortgage loans in Florida and Colorado only. We ask first so we never collect a mortgage inquiry we are not licensed to act on.
This tool is an educational research aid. It does not determine eligibility, and does not confirm that any program currently has funds. Program rules are set and changed by the administering agencies.
- See your matched programs after 15 short steps
- Programs sourced from the agencies that run them, with the source link on every card
- Repayment structure spelled out before you get excited about an award amount
This is an educational research tool, not an approval, a commitment to lend, or a guarantee that any program has funds available today.
- 63
- published assistance programs in our database, each linked to its official source
- 50 + DC
- states plus Washington, DC with at least one program on file
- 15
- short steps between you and your matched list
Published Last updated
- 2026 official data
- Data last verified August 12, 2026
- Data source: HUD
- Data source: HUD Handbook 4000.1, II.A.4
Quick answer: How does down payment assistance work?
Down payment assistance is money from a housing finance agency, city or county that covers part of your down payment or closing costs. It usually arrives as a grant, a forgivable second mortgage, a deferred second you repay when you sell or refinance, or a low-rate repayable second. You still qualify for a normal first mortgage underneath it.
TL;DR
- Assistance comes in four shapes: grant, forgivable, deferred and repayable second.
- Most awards run from a few thousand dollars up to a percentage of the purchase price.
- Income caps, purchase-price caps and a homebuyer education course are the usual conditions.
- You still need to qualify for the first mortgage — assistance sits behind it.
- We originate residential mortgages only in Florida and Colorado; everywhere else this page is research only.
Quick questions
- Do I have to be a first-time buyer?
- Usually, but most agencies define that as not having owned a home in the last three years, and some programs waive it in targeted areas or for public-service occupations.
- Is assistance free money?
- Grants and forgivable seconds can be, if you stay past the forgiveness period. Deferred and repayable seconds are real debt recorded against the home.
- How long does it add to closing?
- Plan on a slightly longer file — the agency reviews and reserves funds alongside the lender, which commonly adds one to two weeks.
The four kinds of down payment assistance
Almost every program in the country is one of these four structures. The label matters far more than the dollar amount, because it decides whether you ever pay the money back.
Grant
Money that does not have to be repaid as long as you meet the program's conditions, which usually include occupying the home as your primary residence. True grants are the rarest and the fastest to run out of funding.
Forgivable second mortgage
A recorded lien with no payment that is forgiven over a set period, often five to fifteen years of occupancy. Sell or refinance before the term ends and the unforgiven balance is due at closing.
Deferred second mortgage
A recorded lien with no monthly payment and no forgiveness. The full balance comes due when you sell, refinance, transfer title, or pay off the first mortgage. Florida Hometown Heroes works this way.
Repayable second mortgage
A recorded lien with a real monthly payment that is underwritten into your debt-to-income ratio. It solves the cash-to-close problem but raises your monthly obligation, so it can reduce how much home you qualify for.
How down payment assistance helps you buy
Down payment assistance closes the cash gap between what a lender will lend and what a seller needs at the closing table. For most buyers it is the difference between purchasing this year and saving for another three to five. Terms and availability are set by each administering agency and can change or run out of funding without notice.
You buy years sooner
Saving a 5% down payment on a median-priced home usually takes several years. Assistance covers most or all of that gap now, so your timeline is set by your credit and income rather than by your savings balance.
Your own cash stays intact
Because the assistance funds the down payment and, on many programs, closing costs, your savings can stay where they belong — reserves, moving costs, and the repairs that show up in the first year.
Often no monthly payment added
Grants and forgivable or deferred second mortgages add nothing to your monthly payment. Only a repayable second creates a second monthly obligation, and every program card on this site states which structure applies.
It stacks with normal financing
Assistance attaches to a standard FHA, conventional, VA or USDA first mortgage originated by a lender approved for that program, so you are not trading away loan choice to use it.
What you have to meet
Almost every published program tests these same seven things. Clear them and you are in the running.
- Income limitCheck first
- Household or qualifying income must fall at or below a published cap, set by county and usually adjusted for household size. This is the most common disqualifier, so check it first.
- Purchase-price cap
- Most programs limit the acquisition cost of the home, and the cap can differ between new construction, existing homes and federally targeted areas.
- First-time buyer status
- Commonly defined as no ownership interest in a primary residence for the past three years. Veterans and targeted-area purchases are frequently exempt.
- Credit score
- Program minimums typically sit in the low-to-mid 600s, and the first mortgage carries its own minimum. The higher of the two governs your file.
- Owner occupancy
- The home must be your primary residence. Investment and second-home purchases are not eligible, and moving out during a forgiveness period usually accelerates repayment.
- Homebuyer education
- Most programs require an approved course certificate before closing. It takes a few hours online — take it early, because it is a hard closing condition.
- Participating lender and reservation
- Funds are delivered through the first mortgage and reserved by an approved lender, normally once you are under contract. Eligibility alone does not hold money; the reservation does.
Not sure you clear all seven?
Answer a few short questions and see which programs match your county and income.
A realistic timeline
Five stages most assisted purchases move through, and when each one usually happens.
- Week 1Stage 1 of 5
Check your limits
Check the county income and price limits, pull your own credit report, and start the homebuyer education course.
- Week 1–2Stage 2 of 5
Line up an approved lender
Work with a lender approved for the specific assistance program you want to use to confirm your financing.
- Week 2–8Stage 3 of 5
Shop and make an offer
Shop inside the program's eligible area and price cap, then write an offer that allows time for the assistance paperwork.
- At contractStage 4 of 5
Funds are reserved
Your lender reserves the assistance funds while the file moves through underwriting.
- At closingStage 5 of 5
Assistance applied at the table
Funds are wired to the closing agent and applied to your down payment and permitted closing costs — they are never paid to you as cash.
Example: how assistance changes cash to close
A hypothetical $300,000 home bought with an FHA loan at the 3.5% minimum down payment.
Without assistance
$10,500
down payment from your savings, plus closing costs
With a $10,000 award (hypothetical)
$500
down payment from your savings, plus closing costs
Illustration only — not a program offer. Award amounts, structure and eligibility are set by each administering agency or lender.
Pros and cons of down payment assistance
- Buy sooner instead of saving for several more years
- Keep more savings as an emergency cushion after closing
- Can cover down payment, closing costs or both, depending on the program
- Some programs are grants or have conditional forgiveness if you meet the program's occupancy terms
- Many programs add a second lien that is repaid when you sell, refinance or move out
- Forgiveness, where offered, applies only if every program condition is met; early sale or refinance can trigger repayment
- Income limits, purchase-price caps and credit minimums narrow who qualifies
- Funding can run out, and some programs add rate or fee trade-offs on the first mortgage
Grants vs. second mortgages: comparison
| Type | Repayment | Monthly payment | Often best for |
|---|---|---|---|
| Grant | Not repaid (per program terms) | None | Buyers who meet program income and occupancy rules |
| Conditionally forgivable second | Forgiven over time only if conditions are met; otherwise repaid | Usually none | Buyers who plan to stay in the home for the full term |
| Deferred second | Repaid at sale, refinance or payoff | None while deferred | Buyers who want no extra monthly payment now |
| Repayable second | Repaid monthly | Adds a monthly payment | Buyers with room in their budget who need cash to close |
Documents you will usually need
- Government photo ID
- Recent pay stubs (usually about 30 days)
- W-2s and/or tax returns (usually the last 2 years)
- Bank statements (usually the last 2 months)
- Proof of any other income (benefits, child support, self-employment)
- Homebuyer education certificate, if the program requires one
- Signed purchase contract once you are under contract
Your lender and program may ask for more or less.
How to get approved for assistance
- 1
Check your credit and budget
Know your score and monthly debts. Program and lender credit minimums vary.
- 2
Match programs where you are buying
Each program sets its own income, price and area rules. Use the finder →
- 3
Run the numbers
See cash to close and payment with and without assistance. Open calculators →
- 4
Complete homebuyer education
Many programs require an approved course before closing.
- 5
Get pre-approved with a participating lender
Assistance is typically reserved through the lender handling your first mortgage.
Timelines are illustrative and vary by program, lender and market. Nothing here is an offer of credit, an approval, or a guarantee of assistance eligibility, funding availability or any particular term.
Compare loan officer compensation on your quote
Loan officer compensation is part of the cost of a mortgage. Our lender-paid compensation is 1.5% of the loan amount. Enter the compensation shown on another lender's Loan Estimate to see the difference in dollars.
Compensation difference on this illustration: $3,750.
How lower compensation can help you
When less compensation is built into pricing, there can be room for a lower interest rate, which may lower your monthly payment.
Depending on the rate you choose, pricing can sometimes include a lender credit toward third-party closing costs, so you may bring less cash to closing.
A lower rate means a lower monthly payment, which can lower your debt-to-income ratio and may help you qualify for more home on the same income.
As a mortgage broker we compare pricing from wholesale lenders instead of offering a single bank's retail pricing.
Tip: On page 2 of your Loan Estimate, look at Section A, "Origination Charges." If the lender pays the loan officer, that compensation usually does not appear there as its own line; it is built into the interest rate. That is why comparing the rate and any lender credits side by side matters.
Illustration only, not an offer or a Loan Estimate. Lender-paid compensation is paid by the lender, not directly by you, and a lower compensation figure does not by itself guarantee a lower rate or lower closing costs. Your actual rate, fees and credits appear on your official Loan Estimate and depend on credit, loan type, property and market conditions. Residential lending in FL and CO only.
Assistance is local — start with your state
Every state runs a housing finance agency program, and the largest awards are often city or county funded. We originate loans in Florida and Colorado and maintain deeper coverage there.
Down payment assistance questions, answered
What is down payment assistance?
Down payment assistance (DPA) is money from a state housing finance agency, a city or county, a nonprofit, an employer or a lender that helps cover your down payment and sometimes closing costs. It comes as a grant, a forgivable second mortgage, a deferred second mortgage or a repayable second mortgage. A grant is generally not repaid when its conditions are met; the other three are recorded liens against your home with their own repayment or forgiveness conditions.
Do I have to be a first-time home buyer?
Usually, but not always. Most programs define a first-time buyer as someone who has had no ownership interest in a primary residence in the past three years, so a previous owner can qualify again. Some programs waive the requirement for veterans, for buyers in targeted areas, or for qualifying professions.
Does down payment assistance have to be paid back?
It depends entirely on the structure. Grants generally do not. Forgivable seconds are forgiven over a set occupancy period and become due if you sell or refinance early. Deferred seconds have no monthly payment but the full balance comes due on sale, refinance or payoff. Repayable seconds carry a monthly payment that is underwritten into your debt-to-income ratio.
How much assistance can I get?
Awards commonly range from about $5,000 to $35,000, and some programs are expressed as a percentage of the purchase price or loan amount. Florida Hometown Heroes and several city programs sit at the high end. The exact amount is set by the administering agency and can change without notice.
Does this site approve me for assistance?
No. This finder is a research tool. It shows programs whose published rules line up with your answers. Eligibility is decided by the agency that runs the program and by full mortgage underwriting. Funding availability changes constantly and must be confirmed with the administrator.
Key takeaways
Down payment assistance is money from a state agency, city, county, nonprofit, employer or lender that covers part of your down payment and closing costs. It is delivered as a grant, a forgivable second mortgage, a deferred second mortgage or a repayable second mortgage, and only a grant is money you never repay.
- Down payment assistance comes in four structures; only a grant is money you never repay.
- Income limits, purchase price caps and first-time-buyer rules disqualify more buyers than credit score does.
- Funding is finite and changes without notice — always confirm availability with the administering agency.
- Most assistance must be paired with a first mortgage from a lender approved by that program.
Your November 2026 home buyer checklist
Four things worth doing this month if you plan to buy with down payment assistance.
Re-run your program match
Funding rounds open and close without notice. Re-check your matched list before you make an offer.
Start the finder →Price your payment with real numbers
Use the FHA and DPA calculators to see cash to close and monthly payment with assistance included.
Open calculators →Check your county loan limit
FHA limits are set by county. Confirm the limit where you are shopping before you set a price range.
Look up limits →Confirm with the administering agency
Income limits and award amounts belong to the agency running each program. Verify them before you rely on them.
Find your state agency →Ready to see which programs fit you?
Answer a few short questions and see the down payment assistance programs worth checking.
