Down Payment Assistance Programs

Down payment assistance programs are designed to help homebuyers cover the upfront costs of purchasing a home. While they’re commonly called “down payment” assistance programs, many of them can also help pay for closing costs, making homeownership more accessible.

For first-time homebuyers, down payments can be as low as 3% with conventional financing or 3.5% with FHA financing. In addition, closing costs typically range from 3% to 4% of the purchase price, and sometimes even more depending on the situation.

For example, on a $300,000 home, the total cash needed to close could exceed $20,000 when you combine the down payment and closing costs.

Unfortunately, studies show that up to 70% of Americans don’t have $20,000 in savings. Down payment assistance programs help bridge that gap, giving hardworking and financially responsible buyers a real opportunity to achieve homeownership.

Depending on the program and your eligibility, you may be able to receive up to 5% of the home’s purchase price to help cover your down payment and closing costs.