A down payment does not have to come entirely from savings. There are thousands of down payment assistance (DPA) programs across the country, run by states, counties, cities and housing agencies, designed to close that gap for eligible buyers.
Your state housing finance agency typically keeps a directory of programs in your area.
Eligibility typically depends on:
Begin with your state housing finance agency, which typically maintains a directory of programs in your area. County and city housing departments often layer additional assistance on top. A lender experienced with these programs can also flag which ones you likely qualify for during pre-approval, before you assume a bigger down payment is your only option.
Assistance programs exist because saving 20% up front is not realistic for most buyers.
Using one does not make you any less of a homeowner. Pair the right program with a first-time homebuyer loan and the gap between renting and owning can close sooner than your savings alone would allow.
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A loan officer can flag which assistance programs you likely qualify for during pre-approval, before you assume a bigger down payment is your only option. Pre-qualifying will not affect your credit score.
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