hellolend Apply online
Pre-qualify

Down payment assistance: how to find and qualify for a program

October 8, 20262 min readHelloLend Team

Down payment assistance programs exist in nearly every state, yet most first-time buyers either don't know about them or assume they won't qualify. State housing finance agencies, cities, counties and some employers run them, not lenders themselves.

How each kind of assistance gets repaid
What you repayWhen
GrantNothingNever
Forgivable secondNothing, if you stayErased after five to ten years in the home
Deferred secondThe amount borrowedWhen you sell, refinance or pay off
Low-interest secondMonthly paymentsAlongside the first mortgage

Most programs also set income limits and a purchase price cap.

The forms assistance takes

  • Grants, which never have to be repaid
  • Forgivable second mortgages, erased after you occupy the home for a set period, often five to ten years
  • Deferred second mortgages, repaid only when you sell, refinance or pay off the first mortgage
  • Low-interest second mortgages, repaid monthly alongside the first

What it takes to qualify

  • Income limits, usually tied to the area median income for the county where you're buying
  • A purchase price cap on the property
  • First-time buyer status, which many programs define as not having owned a home in the past three years
  • A homebuyer education course, generally a few hours and available online
  • An approved lender, since not every lender is authorized to originate with every program

Where the generous programs hide

The programs with the most generous terms are often the least advertised, and many run at the city or county level rather than statewide. Ask your lender which programs they're approved to originate, and check your state housing finance agency directly.

Funding is frequently first-come, first-served and can run out well before year-end.

Start looking early, before you've found the house. Our first-time homebuyer page covers the loans these programs most often pair with.

Published October 8, 2026 by the HelloLend Team. General information, not legal or financial advice. Talk to your loan officer about your own loan. This is not a commitment to lend or extend credit.

ShareEmailLinkedInFacebook

More articles

All articles
First time home buyerSeptember 24, 2026

Closing costs explained: what you're actually paying for

Closing costs usually run 2% to 5% of the purchase price, and first-time buyers are often surprised by what the line items pay for.

First time home buyerSeptember 1, 2026

Pre-qualified vs. pre-approved: what first-time buyers get wrong

These terms are often used interchangeably, but they mean very different things to a seller. Here's what first-time buyers should know.

First time home buyerAugust 18, 2026

Gift funds for a down payment: the rules lenders follow

Family gifts can cover part or all of a down payment, but lenders follow strict documentation rules. Here's what buyers need to know.

Wondering which programs fit your county?

A loan officer can check which assistance programs you're likely to qualify for and how each one pairs with your loan. Pre-qualifying will not affect your credit score.

Pre-qualify