How Much Can You Get for Down Payment Assistance? (Grants, Loans & Limits) 

 

What Is Down Payment Assistance and Why Does It Matter? 

If you’re dreaming of buying a home but feel like the down payment is out of reach, you’re not alone. Down payments—typically 3% to 20% of a home’s price—can be one of the biggest obstacles for first-time buyers. Fortunately, there are down payment assistance programs designed to help you get there faster, with fewer out-of-pocket costs. 

This guide explains how much you can get, where to find down payment assistance for low income families, and the difference between grants and loans. Whether you’re buying your first home or returning to homeownership, help is available—and it might be more than you think. 

 

Understanding How Down Payment Assistance Works 

The Basics of DPA 

Down payment assistance (DPA) programs provide financial help to cover your upfront home purchase costs. These programs are often offered by: 

• State or local housing finance agencies 

• Nonprofits 

• Lenders 

• Employer-sponsored programs 

Some assistance is forgivable if you meet the terms (like staying in the home for a number of years), while others must be repaid later or are provided as interest-free loans. 

 

Who Is Eligible for DPA? 

While each program has its own rules, most prioritize: 

• First-time homebuyers 

• Low- to moderate-income households 

• Buyers using the home as a primary residence 

• Those who complete homebuyer education classes 

💡 Pro Tip: Even if you’ve owned a home before, many programs define a “first-time buyer” as someone who hasn’t owned property in the last 3 years. 

 

How Much Down Payment Assistance Can You Get? 

The amount of down payment assistance you can receive depends on your location, income, and the type of program. That said, here’s a general idea: 

• Grants: $2,500 to $25,000 (not repaid) 

• Forgivable Loans: Up to $15,000 (forgiven over 5–10 years) 

• Deferred Loans: $5,000 to $40,000 (repaid when you sell, refinance, or move) 

• Matched Savings Accounts: Up to $4,000 or more in matching funds 

Some state-specific examples: 

• California Dream for All Shared Appreciation Loan – Offers up to 20% of the home’s price for down payment and closing costs 

• Texas Homebuyer Program – Offers up to 5% of loan amount in assistance 

• DC Open Doors – Offers up to $20,000 in down payment assistance loans 

Check your local housing agency to see what’s available near you:
🔗 National Council of State Housing Agencies – Find a Program 

 

Types of Down Payment Assistance Programs 

Down Payment Assistance Grants 

Grants are the gold standard because they don’t require repayment. 

Key Benefits: 

• Often offered to low-income or first-time buyers 

• May be combined with mortgage programs 

• Typically require completion of a homebuyer education course 

Some grants are available through nonprofits or employers—so be sure to check! 

 

Down Payment Assistance Loans 

Unlike grants, down payment assistance loans do require repayment, but often on generous terms: 

• Deferred loans: No payments until you sell or refinance 

• Forgivable loans: Canceled after a few years of owning the home 

• Subsidized second mortgages: Come with no or low interest 

These loans help bridge the gap when you don’t have enough saved upfront. 

 

Down Payment Assistance for Low Income Buyers 

Tailored Help for Low and Moderate-Income Households 

If your income is below the area median income (AMI), you likely qualify for down payment assistance for low income buyers. Some programs even offer higher amounts to very low-income households. 

Here are a few examples: 

• Good Neighbor Next Door (HUD) – 50% discount for teachers, police, EMTs, and firefighters 

• FHA loans + DPA programs – Combine flexible lending with assistance funds 

• Local housing authorities – Often provide the most generous support for low-income buyers 

Explore HUD’s Local Resources for programs in your area. 

 

Income Limits and Qualifications 

Most programs use income brackets to determine eligibility. For example: 

• A single buyer earning under $60,000 may qualify in one city 

• In a high-cost area, the limit might be $100,000 or more 

Use HUD’s AMI Tool to see if you qualify based on your household size and city.
🔗 HUD Area Median Income Lookup

 

Combining Assistance with Mortgage Options 

FHA, VA, and USDA Loans + DPA 

Many buyers combine low down payment loans with assistance to stretch their budget. 

Loan Type	Minimum Down Payment	Can Combine with DPA?
FHA	3.5%	✅ Yes
VA	0%	✅ Yes
USDA	0%	✅ Yes
Conventional (Fannie Mae/Freddie Mac)	3%	✅ Yes

 

Homebuyer Education Requirements 

Most down payment assistance programs require buyers to complete a homebuyer education course (often free or low-cost). These workshops cover: 

• Budgeting 

• Mortgage basics 

• Responsibilities of homeownership 

📌 Internal Link: Visit Homebuyer Wallet’s First-Time Buyer Guide 

 

FAQs About Down Payment Assistance 

Is down payment assistance only for first-time buyers? 

No—many programs are open to repeat buyers as long as they haven’t owned a home in the last 3 years. 

 

Can I use DPA funds for closing costs? 

Yes. Many programs allow funds to be used for both down payments and closing costs. 

 

Will DPA affect my loan approval? 

Not necessarily, but your lender must be aware and approve the use of outside funds. 

 

How do I find out what I qualify for? 

Start with your local housing agency or lender. You can also explore Homebuyer Wallet’s Assistance Programs for tools and advice. 

 

Final Thoughts: Make Your Dream Home a Reality 

The down payment assistance you receive can make the difference between dreaming about a home and actually owning one. Whether you’re looking for grants, low-interest loans, or assistance for low income buyers, there are programs out there that want to help you succeed. 

Don’t let the idea of a 20% down payment hold you back. With the right support, education, and planning, homeownership is closer than you think. 

 

Ready to Explore Your Down Payment Options? 

🎯 Visit Homebuyer Wallet to: 

• Explore verified down payment assistance grants and loans 

• Learn how to combine programs for maximum savings 

• Access budgeting tips, checklists, and mortgage calculators 

You’re not alone on this journey—let’s make homeownership happen together.