Down Payment Assistance Programs by StateUpdated: December 23, 2022
If you are looking for a home and want to reduce your out-of-pocket costs for the loan, getting down payment assistance can help. There are four basic types of down payment help offered to borrowers who need it.
One type is a grant or down payment gift which is not to be repaid. Other down payment help comes in the form of a second mortgage that is paid side by side with your main mortgage payment.
Yet another type of assistance is a loan that is only paid when you sell, refinance the home, or stop using it as your primary residence. The last type comes in the form of a forgivable loan that requires you to own the home for a set amount of time.
Qualifying For Home Loan Down Payment Assistance
Down payment assistance programs are usually aimed at first time home buyers, but the criteria to be a “first-time buyer” can include simply not owning a home in the three years leading up to your application.
All DPA programs are different and are affected by state law, and other variables. In most cases you will not be allowed to use down payment assistance on an investment property or any home that will not be your primary residence.
Down Payment Assistance Programs By State
The following list of down payment assistance programs broken down by state is current at press time, but as always be sure to check with the official site of each program you want to know more about to get the most up-to-date information about requirements, down payment dollar amounts, etc.
Alabama Down Payment Assistance Programs
The Alabama Housing Finance Authority’s (AHFA) Step Up program offers down payment help via a 10-year second mortgage and are, as the official site explains, “combined with a 30-year, fixed-rate first mortgage”.
These loans are serviced by division of AHFA, so homeowners only write one check each month. You must complete a homebuyer education course to qualify and there are income limits which are current at press time:
- Participants who earn $130,600 or less may qualify for the FHA Step Up program, regardless of household size or location.
- Participants who earn 80 percent or less of the Area Median Income (AMI) for property location OR $130,600 (whichever is less) may qualify for Conventional Step Up (HFA Advantage).
- Participants who earn over 80 percent of the Area Median Income (AMI) for property location but less than $130,600 may apply for the Freddie Mac Advantage Loan Product.
Alaska Down Payment Assistance Programs
The Alaska Housing Finance Corporation offers a grant toward your down payment and closing expenses.
This is for purchase loans only (no refinances) on owner-occupied single-family homes. The loans can be 30-year, fixed-rate FHA, VA or USDA mortgages. More information is at the AHFC Closing Cost Assistance Program official site.
Arizona Down Payment Assistance Programs
The Arizona Department of Housing’s Home Plus home loan program is for borrowers in approved areas–it offers assistance up to five percent of the initial balance on your new mortgage.
Minimum credit scores of 640 or better are required to qualify. Purchase price limits and income caps may also apply. There is a Home Buyer Down Payment Assistance Program which is only associated with Home Plus mortgages.
This program offers a 30-year fixed-rate mortgage combined with down payment assistance (DPA) ranging from 0% – 5% depending upon the new underlying first mortgage. The DPA can be used toward the down payment, closing costs, or both.
Another down payment assistance program offered in Arizona is called Pathway to Purchase (P2P) Down Payment Assistance Program. This features a 30-year fixed-rate mortgage with a Down Payment Assistance (DPA) second mortgage equal to up to 10% of the purchase price.
The DPA second mortgage is described as “a five–year forgivable lien against the subject property at a 0% interest rate and no required monthly payments” and is offered only with a P2P first mortgage. Applicants are generally approved for purchase of an owner-occupied primary residence in targeted areas. This program is not to be used on new construction properties.
Arkansas Down Payment Assistance Programs
The Arkansas Development Finance Authority (ADFA) Move-Up Choice program offers a grant worth up to four percent of the home loan’s balance. The Move Up program features a home loan with a maximum purchase price ($424,100 at press time–these numbers are always subject to change so check before you commit) which is identical to the Arkansas conventional conforming loan limit.
Another program called the ADFA Down Payment Assistance Program offers a second mortgage loan for up to $10k repayable over a decade. This is described on the official site as being “DPA” but also adds that the assistance, “ranges from $1,000 to $10,000 for closing cost assistance. Cash back to the borrowers is allowed for expenses paid outside of closing”.
California Down Payment Assistance Programs
The California Housing Finance Agency (CalHFA) MyHome Assistance Program offers down payment help in the form of a second mortgage for as much as 3.5 percent of the home’s purchase price, or $10,000. This program is for first-time buyers who are those who have not owned or occupied a non-rental property in the last three years.
Colorado Down Payment Assistance Programs
The Colorado Housing Assistance Corporation’s (CHAC’s) Down Payment Assistance Program for first-time buyers can help low or moderate income borrowers who can contribute $1,000 toward their own down payment. Those who are on the Colorado state disability program may have lower contribution requirements. This down payment assistance may be offered as a second lien on the property and a counseling session about homeownership and related issues may also be required.
Connecticut Down Payment Assistance Programs
The Connecticut Housing Finance Authority (CHFA) offers a second mortgage down payment assistance program featuring an interest rate that is the same in most cases as the first mortgage. An application fee applies. There are minimum down payment assistance loan amount requirements and certain net worth restrictions may apply.
Delaware Down Payment Assistance Programs
The Delaware State Housing Authority (DSHA) provides eligible applicants a Second Mortgage Assistance Loan (SMAL) that can be used for both down payments and closing costs.
Preferred Plus assistance provides a no-interest second mortgage loan of 2 percent to 5 percent of your overall loan amount.
The DSHA Advantage 4 program, offered in the past, has featured a grant good for up to four percent of the mortgage balance. This does not have to be repaid. This program may be offered intermittently or may have limited availability.
Washington, D.C. Down Payment Assistance Programs
The Home Purchase Assistance Program (HPAP) has been offered to low or moderate-income borrowers. Eligible applicants can receive a maximum of $80,000 in gap financing assistance and an additional $4,000 in closing cost assistance.
Qualified moderate-income borrowers can also get $4,000 as an interest-free loan, payable in five years.
Florida Down Payment Assistance Programs
The Florida Housing Finance Corporation (FHFC) offers multiple down payment assistance including something called an HFA Preferred Grant, plus another program known as Florida Assist. There is also something called the Hardest Hit Fund offering $15,000 interest-free for five years to those buying homes in approved zones. 20 percent of the loan is forgiven annually.
Georgia Down Payment Assistance Programs
The Georgia Dream Homeownership Program (GDHP) is for first time home buyers. Applicants must contribute a minimum amount toward the down payment to qualify for assistance up to $7,500 in 2021. Eligibility caps may apply.
Idaho Down Payment Assistance Programs
The Idaho Housing and Finance Association (IHFA) offers down payment help in the form of a second mortgage or a forgivable loan. For the second mortgage:
- Can be used for down payment and closing cost assistance
- Available for 2.5% or 3.5% when using the First Loan
- Fixed rate of 5% over 10 years with low monthly payments
- Income limits up to $110,000 for some products
- Credit score of 680 required or 640 when using the First Loan
- Finally Home!® Homebuyer Education is required
- Borrower must contribute at least 0.5% of the sales price to the transaction
The forgivable loan program includes:
- No first‐time homebuyer requirement
- Available for up to 3.5% of the sales price
- Tiered loan forgiveness over seven years
- Finally Home!® Homebuyer Education is required. Only one certificate is required per loan
- Borrower must contribute at least 0.5% of the sales price to the transaction
Illinois Down Payment Assistance Programs
There are five programs offered at the Illinois Housing Development Authority official site. Opening Doors, SmartBuy, and three Access Forgivable programs offer down payment help up to $10k depending on the program, the applicant, and other variables. Many of these programs are forgivable loans that don’t require repayment if the borrower meets terms and conditions of the program.
At press time, you can be either a first-time home buyer or a “non-first-time home buyer” to qualify for these programs. Loan forgiveness options are offered only to those who meet the program’s requirements for occupancy and time owning the property where applicable.
Indiana Down Payment Assistance Programs
The Indiana Housing and Community Development Authority currently offers two programs that provide down payment help.
- Down Payment Assistance (DPA) of 6.0% based on purchase price but not to exceed the appraised value of the property
- Applicant must be a first-time homebuyer, unless the subject property is located in a qualified census tract or the borrower is a veteran
- For 30-year fixed rate FHA mortgages
- Minimum FICO credit score of 640 with a DTI of less than 45.00%
- Minimum FICO credit score of 680 with DTI greater than 45.00%, but less than 50.00%
- Down Payment Assistance (DPA) of 3.50% based on purchase price but not to exceed the appraised value of the property
- FHA 30-year fixed loan
- Minimum FICO credit score of 640 with a debt-to-income ratio of less than 45%
- Minimum FICO credit score of 680 with debt-to-income ratio greater than 45%, but less than 50%
Iowa Down Payment Assistance Programs
The Iowa Finance Authority (IFA) has a program called FirstHome offered as either a down payment grant or a loan. The FirstHome grant provides up to $2,500 in the form of a non-repayable grant to assist with down payment and closing costs.
The loan version offers up to 5% of the sale price or $10k (whichever is less) repayable when the first mortgage is refinanced, paid in full, or the home sold. No monthly payments are required.
Kansas Down Payment Assistance Programs
The Kansas Housing Resources Corporation (KHRC) offers the First Time Homebuyer down payment assistance program for home purchases outside the following excluded areas:
- Kansas City
- All of Johnson County
The First Time Homebuyer Program “helps income-eligible applicants” in making their down payment on a home purchase. There is a home buyer investment requirement of at least 2% but no more than 10% of the sale price.
There is also a statewide program administered by the Kansas Housing Assistance Program providing up to 5% down payment assistance for qualifying borrowers. Credit score requirements, income limits, and residency requirements apply.
Kentucky Down Payment Assistance Programs
The Kentucky Housing Corporation (KHC) offers the following down payment assistance options:
Regular KHC DAP
- Purchase price limits apply
- Down payment assistance is a loan up to $6,000 in $100 increments
- Repayable ten years (5.50% interest)
- Available to all KHC first-mortgage loan recipients
Affordable KHC DAP
- Purchase price caps apply
- Assistance up to $6,000
- Repayable over a ten-year term at 1.00 percent
- Borrowers must meet DAP income limits
These DPA programs feature no “liquid asset review”, and there is no limit on borrower cash reserves. There may be specific credit score requirements or other credit guidelines for these down payment assistance programs.
Louisiana Down Payment Assistance Programs
The Louisiana Housing Corporation offers multiple down payment assistance programs, including the following:
- Market Rate GNMA Program offers up to 4% down payment assistance on 30-year, fixed-rate FHA, VA or USDA Rural Development mortgages.
- Market Rate Conventional Program offers down payment help up to 4%.
- MRB Home and Assisted Programs provides up to 4% of DPA for the MRB Assisted Program. Assistance for the MRB Home program ranges between 5-9% (depending on loan amount).
- Resilience Soft Second Program provides as much as $55,000 in “Soft Second Assistance” for down payments and up to $5,000 for closing costs on 30 year, fixed-rate FHA, VA, USDA, and Conventional loans. This program may be restricted to targeted areas.
Maine Down Payment Assistance Programs
The MaineHousing First Home Loan Program is for first-time buyers, defined in this case as anyone who has not owned a home within the last three years. First Home Loans “makes it easier and more affordable to buy a home of your own by providing low fixed interest rate mortgages” with low down payment options and a down payment and Advantage, described as a closing cost assistance option.
Advantage provides up to $3,500 “toward the cash you need for closing”. The program requires attendance at an approved homebuyer education class prior to closing. A minimum borrower contribution is also required.
Maryland Down Payment Assistance Programs
The Maryland Department of Housing and Community Development (MDHCD) Down Payment Assistance and Partner Match Programs offer the following assistance to qualifying borrowers:
- Zero-percent interest loans, which typically become payable only when you sell the home or refinance.
- Forgivable loans for those occupying/owning the home for the minimum required period.
- Down payment and/or closing cost grants offered by MDHCD lending partners.
Massachusetts Down Payment Assistance Programs
MassHousing provides down payment assistance of up to $25,000 for qualifying areas including Boston, Gateway City, or in any of the state’s 26 “Gateway Cities” which include:
- Fall River
- New Bedford
There are also down payment assistance options for borrowers purchasing anywhere else in the state–as much as $15,000 at press time “for Homebuyers in all Massachusetts Communities” according to the official site.
Michigan Down Payment Assistance Programs
The Michigan State Housing Development Authority (MSHDA) offers down payment assistance in two forms:
MI Home Loan Mortgage
- Down Payment Assistance Loan for up to $7,500. A home buyer education / home buyer counseling class is required
- There are $10,000 down payment assistance loans offered in more than 200 qualifying areas
MI Home Loan Flex Mortgage
- A Down Payment Assistance Loan up to $7,500 available statewide
- A homebuyer education class is required
- Offered to first-time and repeat home buyers
Minnesota Down Payment Assistance Programs
The Minnesota Housing Finance Agency (MHFA) features down payment loans for qualifying borrowers:
Monthly Payment Loan can be used with Start Up or Step Up programs in the state. DPA loans offered are as high as $17k in 2021, with an interest rate equal to the mortgage loan interest rate on the purchase loan. The DPA loan is paid over a ten year term.
Deferred Payment Loans may also be used with the Start Up program but this is only for first-time homebuyers. You can get a deferred payment loan up to $10k in 2021 or a Deferred Payment Loan Plus for qualifying borrowers purchasing in targeted areas. The Deferred Payment loans are for as much as $13k in 2021.
Mississippi Down Payment Assistance Programs
Mississippi Home Corporation provides down payment loans for some qualifying borrowers and down payment grants to others–income caps and credit score requirements apply for these two programs:
Smart Solution Second offers a loan for the borrower’s 3-percent down payment. This is offered via a 10-year second mortgage, which has the same interest rate as the purchase loan.
Smart Solution Plus offers qualifying applicants a four percent “cash advance” as a grant that is not repaid. Income caps and FICO score requirements apply.
Missouri Down Payment Assistance Programs
The Missouri Housing Development Commission (MHDC) offers payment assistance for qualifying first-time and repeat buyers. This comes in the form of a “forgivable second mortgage of 4 percent of the loan amount” according to the official site. This is to be used for the down payment and/or closing costs.
This loan is forgivable after the owner has been residing in the home for ten years. Standard closing costs apply and income caps may vary depending on zip code or region.
Montana Down Payment Assistance Programs
NeighborWorks Montana offers down payment assistance loans starting at $2,500 in 2021 and as high as $40k in certain cases to “help fill the gap between the total financing needed and the amount the primary mortgage lender is willing to lend”.
This down payment program for Montana residents is offered to households with income at or below 80% of the county median income (based on the size of the family). This program is for first-time homebuyers, a single parent with dependent children in the household, or a household with a disabled individual.
This program features qualifying regions and targeted areas, your eligibility for this program may depend on where you are buying the home.
Nebraska Down Payment Assistance Programs
The Nebraska Investment Finance Authority (NIFA) offers a homebuyer assistance program for those who can contribute $1,000 (in 2021) toward their own down payment and closing costs.
The NIFA Homebuyer Assistance (HBA) Program features a second mortgage for the down payment with a caveat that, “The interest rate on the first mortgage loan is higher than NIFA’s other programs that do not offer down payment and closing cost assistance.”
The maximum amount for the DPA second mortgage loan is 5% of the home’s purchase price with a 10 year loan term. Income caps and other restrictions may apply.
A NIFA grant is offered through its The First Home Grant Program. This is meant for applicants with a total household income “that does not exceed 50% of the Area Median Income” according to the official site.
Grants were offered for as much as $5,000 per household in 2021. These funds are not to be repaid but there is a limited amount of such funding offered each year.
Nevada Down Payment Assistance Programs
The Nevada Housing Division Home Is Possible Down Payment Assistance Program offers a down payment grant of up to “5% of the home loan value” at press time in 2021. A one-time fee is required for this program at closing time but Home Is Possible offers:
- Funds for both down payment and closing costs
- No first-time homebuyer requirement
- Financing available for manufactured homes
- Offered statewide program
Program requirements include qualifying income caps, the home price is capped, and there is a minimum credit score requirement. Applicants are also required to take a home buyer education course.
New Hampshire Down Payment Assistance Programs
The New Hampshire Housing Finance Authority offers the Home Flex Plus program, which features Home Flex Plus (FHA, VA & RD) and Home Preferred Plus programs for “cash assistance for up to 4% of base loan amount to help with your down payment, and closing cost”.
Cash Assistance is a second mortgage program which is forgivable after four years unless the borrower sells the home, refinances it, or files for bankruptcy. Income caps and other restrictions may apply.
New Mexico Down Payment Assistance Programs
The New Mexico Mortgage Finance Authority offers help with closing costs and down payments. There are programs including FirstDown, offering a second mortgage with a low rate that helps with both down payment and closing expenses. This program is exclusively for first-time buyers.
There is also a program called NEXTHome, described as a combination first mortgage loan and down payment assistance second mortgage loan, offered to both qualifying first-time homebuyers and non first-time homebuyers. This program features a qualifying income limit and purchase price caps.
New York Down Payment Assistance Programs
The Community Foundation for the Greater Capital Region offers something known as the NYSAR Housing Opportunities Foundation Grant to low to moderate-income families in New York State.
Applicants must be first-time homebuyers or be someone who has no ownership interest in a home in the last three years. The following restrictions apply:
- Applicant income caps apply and these caps will vary by county
- Home price limits apply, and the limits will vary by county
- Grants are only offered for owner-occupied residence purchases – no investment properties
This down payment assistance is provided by lottery. There is a limited amount of funds each year. The official site advises that winners are selected at random with “all completed applications submitted during a calendar month” being entered into the same lottery pool.
North Carolina Down Payment Assistance Programs
The North Carolina Housing Finance Agency offers a down payment assistance program called NC Home Advantage Mortgage. Offered to both first-time buyers and “move-up home buyers”, this program offers fixed-rate mortgages and down payment assistance for as much as five percent of the loan amount.
A second program called 1st Home Advantage Down Payment which the official site describes as a zero percent, deferred second mortgage. This loan “is forgiven 20 percent per year at the end of years 11-15, with complete forgiveness at the end of year 15.”
North Dakota Down Payment Assistance Programs
The North Dakota Housing Finance Agency (NDHFA) offers the Start and the DCA programs to help low-income home buyers find an affordable mortgage that includes closing cost and down payment assistance. Assistance is also provided for moderate income borrowers.
DCA program features include:
- Income limits which vary based on county and family size
- The home must not be located within a 100-year flood plain
- Occupancy required
- Maximum of two units
- Homebuyer education course completion required
Applicants must seek DCA purchase assistance via a participating lender.
The Start Program is intended for low and moderate-income buyers. Start cannot be used in conjunction with any other down payment assistance program and can be used only for owner-occupied properties with a maximum of two living units.
Start purchase assistance is offered via NDHFA participating lenders.
Ohio Down Payment Assistance Programs
The Ohio Housing Finance Agency offers the YourChoice down payment assistance program. Terms and conditions are subject to change but in 2021 the program offered qualifying borrowers (see below) either 2.5% or 5% of the home’s purchase price.
The funds can be applied to down payments, closing costs or “pre-closing expenses”. The down payment assistance is forgiven after seven years. Those who sell or refinance before the seven years have ended are required to repay all assistance.
The Ohio Housing Finance Agency also has a Grants for Grads program featuring a discounted mortgage rate and down payment assistance up to 5%. This assistance is forgiven after five years as long as you remain an Ohio resident. Those who sell the home and move out of Ohio within five years must repay “some or all of the assistance provided”.
Both programs feature income caps, credit score requirements, and the previously mentioned occupancy rules. For Grants For Grads, applicants must have graduated within the last 48 months with a degree from an accredited college or university.
Oklahoma Down Payment Assistance Programs
The Oklahoma Housing Finance Agency Homebuyer Down Payment Assistance program provides up to 3.5% of the loan amount “to be applied first to any down payment required for your loan; and secondly to closing costs”. These loans are issued via approved lenders and for those who already have down payment funds and closing cost money, OHFA offers discounted interest rates instead.
FICO score requirements apply–you must have a “middle credit score” of 640 or better and be a legal United States resident. The down payment assistance is for owner-occupied residences only. No investment properties or second homes.
- This assistance is available in all Oklahoma counties but purchase price limits apply
- Loans are 30-year fixed rate mortgages for new or existing construction
- First-time home buyer requirements may apply but not in all cases–certain areas require first-time buyers and others do not
- DPA is for all available loan types including conventional mortgages
- Special offers are made for teachers and other critical workers
Oregon Down Payment Assistance Programs
The Oregon state government official site, Oregon.gov, has a page dedicated to down payment assistance programs. Oregon has a decentralized approach to DPA funds, which in Oregon’s case are intended for low to moderate-income applicants with as much as $15,000 in down payment help available depending on circumstances, where you apply, etc.
The following is a list of down payment assistance resources broken down by Oregon counties.
- ACCESS / Jackson, Josephine
- African American Alliance for Homeownership / Clackamas, Multnomah, Washington
- Redmond Habitat for Humanity / Deschutes
- Columbia Cascade Housing Corporation / Hood River, Sherman, Wasco
- Community Action Program of East Central Oregon / Gilliam, Morrow, Umatilla, Wheeler
- Community Connection of Northeast Oregon / Baker, Grant, Union, Wallowa
- Community in Action / Harney, Malheur
- DevNW / Benton, Clackamas, Lane, Lincoln, Linn, Marion, Polk
- Habitat for Humanity, Portland Metro East / Multnomah
- Habitat for Humanity of Oregon / Benton, Columbia, Coos, Clatsop, Deschutes, Douglas, Hood River, Josephine, Lane, Lincoln, Linn, Marion, Sherman, Tillamook, Union, Wasco, Washington, Yamhill
- Hacienda Community Development / Clackamas, Multnomah, Washington
- Native American Youth and Family Center / Clackamas, Multnomah, Washington
- NeighborImpact / Crook, Deschutes, Jefferson
- NeighborWorks Umpqua / Coos, Curry, Douglas
- Open Door HousingWorks / Washington
- Portland Community Reinvestment Initiatives / Multnomah
- Portland Housing Center / Clackamas, Columbia, Multnomah, Washington, Yamhill
- Proud Ground / Multnomah, Washington
- Willamette West Habitat for Humanity / Washington
Down payment assistance programs like the ones listed above are funded by the state’s document recording fee, and “certain jurisdiction’s Construction Excise Taxes”. A portion of these funds are distributed to Oregon Housing and Community Services to provide down payment assistance programs and other efforts to expand homeownership in Oregon.
Pennsylvania Down Payment Assistance Programs
The Pennsylvania Housing Finance Agency offers multiple down payment assistance options including:
The PHFA Grant offers $500 in down payment and closing cost assistance when used with the HFA PreferredTM (Lo MI) loan. Some qualifying borrowers may combine the PHFA Grant of $500 with the Keystone Advantage Assistance Loan Program.
The Keystone Forgivable in Ten Years Loan Program (K-FIT) provides down payment and/or closing cost help in the form of a second mortgage of up to five percent (5%) of “the lesser of the purchase price or appraised value with no maximum dollar limit in down payment and closing cost assistance”. The second mortgage loan is forgiven on an annual basis over ten years at 10% per year as structured in 2021.
The Keystone Advantage Assistance Loan Program provides a second mortgage loan to up to four percent of the purchase price or market value or $6,000 (whichever is less) in down payment and closing cost assistance. This loan is repaid over a ten year period at zero interest and be used with HFA Preferred™(Lo MI), Keystone Government Loan, or a Keystone Home loan.
The HOMEstead program offers up to $10,000 in down payment and closing cost assistance. This is provided as a zero-interest second mortgage. HOMEstead funds are forgiven at 20 percent per year over five years (your loan must have closed on or after Jan. 1, 2007).
For these and related programs, occupancy is required. Income caps and purchase price limits may apply. Some down payment assistance is meant for targeted areas and you may be limited when trying to purchase in non-targeted regions.
Rhode Island Down Payment Assistance Programs
Rhode Island Housing offers zero-down mortgage loans to qualifying applicants but also features the10kDPA program, which offers up to $10,000 (in 2021) down payment assistance loan to ﬁrst-time homebuyers in Rhode Island. Credit score and income requirements apply as well as the following requirements:
- Be a first-time homebuyer
- Must be applying to purchase a one to four unit home in Rhode Island
- Complete a homebuyer education course
- Obtain a RIHousing-funded first mortgage
- Occupy the home as your primary residence
Another program, Extra Assistance, provides down payment assistance to eligible first-time homebuyers in Rhode Island. Similar income caps and credit score requirements apply.
South Carolina Down Payment Assistance Programs
The South Carolina State Housing Finance and Development Authority features a First-Time Home Buyer Mortgage Loan Program, which is designed to provide first-time low-to-moderate income buyers.
This program is also open to those who have not had an ownership interest in a property in the last three years. Targeted areas may apply and all borrowers must complete a homebuyer education course to qualify.
Forgivable down payment assistance is offered in the form of a second mortgage with either a 10 year or 20 year term. There are NO monthly payments with this second mortgage and the loan is fully forgiven at the end of the loan term as long as the borrower meets occupancy requirements.
South Dakota Down Payment Assistance Programs
The South Dakota Housing Development Authority (SDHDA) offers down payment assistance via a program called Fixed Rate Plus, offered by participating lenders. Those who qualify are offered up to 3% “to help with the costs of your mortgage” including down payment. The Fixed Rate Plus loan is a second mortgage with zero interest payable on the sale of the home or “satisfaction”.
Tennessee Down Payment Assistance Programs
The Tennessee Housing Development Agency provides the Great Choice down payment assistance program. This is for those who qualify for the Great Choice Home Loan and the following assistance is offered:
For purchase prices under $150,000, the amount of down payment assistance is $6,000.
- For purchase prices at or over $150,000, the amount of down payment assistance is $7,500.
Great Choice Plus is a second mortgage paid over 15 years at the same interest rate as the first mortgage. Home buyer education is required.
Texas Down Payment Assistance Programs
My First Texas Home is offered to veterans and first-time home buyers who are first-time buyers or who haven’t owned a home in the previous three years. My First Texas Home down payment assistance can be in the form of a zero percent interest “silent second” loan with no monthly payments. Those who sell, refinance or pay off the original 1st lien mortgage are required to pay back the down payment assistance.
The Texas Home Buyer Program offers a My Choice Texas Home down payment assistance up to five percent of the loan amount, depending on the type of mortgage. This down payment assistance is for those with income “below a certain level” according to the official site and there are purchase price caps.
Utah Down Payment Assistance Programs
The Utah Housing Corporation (UHC) offers down payment assistance for those who qualify for a Utah Housing Corp. first mortgage. Down payment assistance will be determined when you speak to a participating lender but applicants should know “You may be able to borrow your entire minimum required down payment plus all or a portion of your closing costs on a Utah Housing Corp 30 year fixed rate second mortgage.”
First time home buyers may be offered up to six percent of the loan as down payment assistance while repeat borrowers may be offered up to four percent of the loan as down payment help. Owner occupancy is required and you may not rent out the home for the duration of the down payment assistance loan.
Homebuyer education classes are required in some instances and not required in others. You will need to discuss the program with a participating lender to see whether you are required to attend a homebuyer counseling or education program to qualify.
Vermont Down Payment Assistance Programs
The Vermont Housing Finance Agency (VHFA’s) ASSIST Second Mortgage down payment help is offered to first-time buyers who have never owned a home. Asset limits and other limitations apply. This down payment assistance is available for those who apply for VHFA Move, Move MCC, and Advantage mortgage loans.
Pre-purchase homebuyer education and counseling are required as a condition of loan approval. This loan offers up to $5,000 toward your down payment and closing costs.
The second loan is interest-free, and payment-free with a 30-year loan term, coming due “only when your first mortgage ends: normally, when you pay it off, refinance or sell your home” according to the official site.
Virgin Islands Down Payment Assistance Programs
The Virgin Islands Housing Authority provides down payment assistance via funds offered through the National Affordable Housing Act of 1990 and something known as the HOME Program.
HOME is designed to help provide affordable housing for very-low and low-income families through VIHFA, which administers the program on a local basis. The target demographic for this assistance is first-time home buyers. The assistance comes in the form of both low-interest loans and grants which can be used to buy down the mortgage “to an affordable level” or to help offset closing costs and down payment expenses.
HOME funds are intended for the following qualifying applicants:
- Single persons, couples, and families with children are all eligible to apply
- Applicants for homebuyer assistance must be a first-time homebuyer
- Applicants for rehabilitation assistance must own and occupy the home as a primary residence
- The household’s gross annual income must fall within the HOME income limits published annually by HUD.
Virginia Down Payment Assistance Programs
The Virginia Housing Development Authority offers a down payment grant for qualifying first time home buyers.
The amount of the non-repayable grant can be as much as 2.5 % of the purchase price, but can only be used with eligible Virginia Housing loans. The first mortgage must have a loan-to-value ratio of 90% “if the DPA Grant is used with other acceptable non-Virginia Housing funds in accordance with the first mortgage requirements.”
- Grant funds may not be paired with the Virginia Housing Plus Second Mortgage
- Minimum credit score requirements apply
- Buyers must have household incomes at or below program limits
- Virginia Housing’s eligible first mortgage must be locked on or after the program implementation date
Washington Down Payment Assistance Programs
The Washington State Housing Finance Commission (WSHFC) offers multiple down payment assistance programs. These include:
- Home Advantage DPA provides up to 5% of the first mortgage total or gross loan amount depending on the loan.
- Home Advantage DPA Needs Based Option offers up to $10,000, for borrowers using a Home Advantage loan and who meet income limits.
- Opportunity DPA offers as much as $10,000, for borrowers using a “House Key Opportunity” loan.
- Veterans DPA for as much as $10,000 for military veterans.
- HomeChoice DPA provides down payment funds up to $15,000 for buyers with a disability or disabled family member living with them.
These programs are offered in the form of repayable loans. As the official site reminds, “Our down payment assistance is only for homebuyers who use our home loan programs” and income limits also apply.
West Virginia Down Payment Assistance Programs
The West Virginia Housing Development Fund offers help with down payments and closing costs with two programs: the Homeownership option and Movin’ Up.
- $7,500 in down payment assistance offered for loans with a loan-to-value ratio greater than or equal to 90% of the purchase price
- $10,000 in assistance offered for loans with a loan-to-value ratio less than 90% of the purchase price
Movin’ Up program:
- $5,000 in down payment assistance for loans with a loan-to-value ratio greater than or equal to 90% of the purchase price
- $8,000 in down payment assistance for loans with a loan-to-value ratio less than 90% of the purchase price
The down payment assistance is offered in the form of a low-interest second loan. Qualified borrowers under the Homeownership program will not have an ownership interest in their principal residence “at any time during the three-year period ending on the date the program loan is closed” if the borrower purchases a residence located in non-targeted counties.
Further Movin’ Up program details were not available at press time and you may need to speak to a participating lender to learn more about your down payment assistance options under that program.
Wisconsin Down Payment Assistance Programs
The Wisconsin Housing and Economic Development Authority (WHEDA) offers two down payment assistance options:
WHEDA Easy Close DPA featuring a maximum down payment assistance loan amount of 6% of the purchase price “when partnered with a WHEDA Conventional first mortgage loan”. Similar terms are offered for government backed mortgage options such as FHA loans. Income limits and other restrictions may apply. This DPA is a loan, not a grant.
WHEDA Capital Access DPA is offered as a down payment loan, the maximum of which is the greater of $3,050 or 3% of the purchase price “when partnered with a WHEDA conventional loan”. Income caps and other restrictions may apply.
In most cases you may be required to maintain occupancy for the duration of the loan for either program, and while you do not have to be a first-time buyer to qualify you must be purchasing in Wisconsin.
Wyoming Down Payment Assistance Programs
The Wyoming Community Development Authority (WCDA) has two down payment assistance programs offered in the form of a loan featuring:
- $10,000 maximum loan for down payment help
- 620 minimum credit score
- $1,500 minimum borrower contribution required
The WCDA “Home$tretch DPA Loan Product” offers a zero percent interest rate 0% interest rate and 0.080% APR based on an average down payment loan amount of $5,500. No monthly payment is due on this loan, it comes due upon sale, refinance or amortization of the loan.
The “Amortizing DPA Loan Product” features a fixed interest rate, and monthly payments over a ten year term.
Joe Wallace is a 13-year veteran of the United States Air Force and a former reporter for Air Force Television News