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What is down payment assistance?

Quick answer

Down payment assistance (DPA) is money from a state housing finance agency, city, county, nonprofit or employer that helps cover your down payment and closing costs. It usually comes as a grant, a forgivable loan, or a 0% deferred second mortgage repaid when you sell or refinance. Most programs have income limits and require homebuyer education.

By Purchase Mortgage Loan Editorial Team Checked against official sources per our editorial standardsLast updated
Min. down: VariesMin. credit: Usually 620–640

Types of down payment assistance

TypeDo you repay it?Typical terms
GrantNoGift of funds, sometimes with a short occupancy requirement
Forgivable loanNo, if you stayForgiven over 5–10 years of living in the home
Deferred loanYes, later0% interest, repaid on sale, refinance or payoff
Repayable secondYes, monthlyLow-rate loan with a small monthly payment

How to find down payment assistance

  • Start with your state housing finance agency (see our state pages).
  • Check city and county housing departments.
  • Ask your employer — some offer homebuyer benefits.
  • Ask a loan officer which programs they're approved to offer.

Frequently asked questions

Yes. Many state programs pair DPA with FHA, conventional, VA or USDA first mortgages.

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Figures on this page are estimates for educational purposes only and are not a loan offer or commitment to lend. Rates, loan limits, fees and assistance programs change frequently and vary by lender, location and borrower profile. Confirm current terms with a licensed loan officer.