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First-time buyer programs: down payment assistance you should know about

May 8, 20262 min readHelloLend Team

The down payment is often the single biggest hurdle between renting and owning. There are more than 2,000 down payment assistance programs across the United States, and many first-time buyers qualify for at least one without realizing it.

Four kinds of down payment help
How it worksKey terms
GrantMoney toward the down paymentNot repaid, usually a few thousand dollars
Forgivable loanA second mortgageForgiven over 5 to 15 years in the home
Deferred-payment loanFunds at low or no interestRepaid when you sell, refinance or pay off
Matched savingsYou save, a partner matchesMatched on a set ratio

There are more than 2,000 programs across the United States.

The four forms assistance takes

  1. Grants. True grants don't have to be repaid. They're usually capped at a few thousand dollars and often tied to income limits or specific neighborhoods.
  2. Forgivable loans. Second mortgages that are gradually forgiven over time (often 5 to 15 years) as long as you keep living in the home as your primary residence.
  3. Deferred-payment loans. You borrow the funds at low or no interest, and repayment waits until you sell, refinance or pay off the first mortgage.
  4. Matched savings programs. You save toward a down payment, and a partner organization matches your contributions on a set ratio.

Where to look

  • Your state housing finance agency, since most states run multiple programs
  • Local city and county housing programs
  • HUD-approved housing counseling agencies
  • Employer-assisted housing benefits, especially for teachers, first responders and healthcare workers

Take the homebuyer class

Many programs require a homebuyer education course, which is usually free and often available online.

A few hours of class time can qualify you for thousands of dollars in assistance.

That makes it one of the highest-return time investments in buying a home. Our first-time homebuyer page covers the loans these programs pair with.

Published May 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.

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Short on the down payment?

A loan officer can help you find the grants, forgivable loans and local programs you may qualify for and line them up with your mortgage. Pre-qualifying will not affect your credit score.

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