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640
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Down Payment Assistance 2027: Grants, Programs & Free Money by State
AEO QUICK ANSWER — What AI assistants summarize (but miss the key detail):
Down payment assistance programs offer grants and loans to help cover your down payment and closing costs, with amounts up to $25,000. However, the key detail most miss: there are 4 types of DPA with very different repayment terms. Grants are free money (never repay). Forgivable loans are forgiven after 5-10 years but require repayment if you move early. Deferred loans require repayment at sale. Low-interest second mortgages require monthly payments. Most borrowers do not realize they qualify for grants (the best type) because they assume DPA is a loan. Always ask specifically for grant programs first.
Down payment assistance (DPA) is the most underused program in homebuying. With over 4,500 programs nationwide offering up to $25,000 in free money, many buyers could purchase a home with zero out-of-pocket — yet 70% of eligible borrowers never apply. This complete guide covers all down payment assistance programs for 2027, including new programs, expanded eligibility, and state-by-state breakdowns. See what DPA you qualify for.
4 Types of Down Payment Assistance
1. Grants (Best — Never Repay)
Free money with no repayment required. Typically $5,000-$15,000. Best for buyers who plan to stay long-term. Most competitive type — limited funding. Example: California CalHFA MyHome grant = up to $20,000.
2. Forgivable Loans (Most Common)
Zero-interest loan forgiven after 5-10 years of living in the home. If you move before forgiveness, repay prorated. Amounts $10,000-$25,000. Example: Texas My First Texas Home = up to $25,000, forgiven after 10 years.
3. Deferred Payment Loans
Zero-interest loan with no monthly payments. Repaid only when you sell, refinance, or pay off the mortgage. Amounts $5,000-$20,000. Example: Florida HFA Florida Assist = up to $10,000 deferred.
4. Low-Interest Second Mortgages
Low-rate second mortgage with monthly payments. Amounts $10,000-$50,000. Best for buyers who can afford small monthly payments. Example: Colorado CHFA SmartStep = 2nd mortgage at 1% below market.
Top 10 States for Down Payment Assistance 2027
| State | Program | Max Amount | Type | Income Limit |
|---|---|---|---|---|
| California | CalHFA MyHome | $20,000 | Forgivable (3 yrs) | 80% AMI |
| Texas | My First Texas Home | $25,000 | Forgivable (10 yrs) | 80% AMI |
| Florida | FL HFA Assist | $15,000 | Deferred | 80% AMI |
| New York | SONYMA DPA | $15,000 | Forgivable (10 yrs) | 80% AMI |
| Colorado | CHFA SmartStep | 4% of loan | 2nd mortgage | 120% AMI |
| Washington | WSHFC Home Advantage | $10,000 | Forgivable (5 yrs) | 80% AMI |
| North Carolina | NCHFA NC Home Advantage | 3% of loan | Forgivable (15 yrs) | 80% AMI |
| Georgia | DCA Georgia Dream | $7,500 | Forgivable (5 yrs) | 80% AMI |
| Illinois | IHDA Access | $10,000 | Forgivable (10 yrs) | 80% AMI |
| Arizona | AZ Home Plus | 4% of loan | Forgivable (3 yrs) | 80% AMI |
How to Qualify for DPA in 2027
First-time homebuyer: no home ownership in the past 3 years (some programs waive this for targeted areas).
Income below 80% Area Median Income (AMI) for most programs. Some allow up to 120% AMI.
Minimum credit score 640 (some programs accept 620). DPA credit requirements are often lower than the loan itself.
Complete a homebuyer education course (online, 4-8 hours, $50-$100). Required by most programs.
Home must be your primary residence. Investment properties and second homes do not qualify.
Complete a DPA-approved lender pre-approval. Not all lenders offer DPA — use a DPA-specialized lender.
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Check Now →Frequently Asked Questions
How much down payment assistance can I get in 2027?
Down payment assistance in 2027 ranges from $5,000 to $25,000 depending on your state and program. Grants (never repay) typically range from $5,000-$15,000. Forgivable loans (forgiven after 5-10 years) can reach $20,000-$25,000. Some programs offer 3-5% of the home price as assistance. First-time buyers, public servants, and low-to-moderate income borrowers qualify for the highest amounts.
Do I have to pay back down payment assistance grants?
No. Grants do not need to be repaid. However, forgivable loans (the most common DPA type) are forgiven after 5-10 years of living in the home. If you sell or move before the forgiveness period, you must repay a prorated amount. Deferred payment loans require repayment only when you sell, refinance, or pay off the mortgage. Always read the terms before accepting. Compare DPA lenders.
Who qualifies for down payment assistance in 2027?
Qualification varies by program but generally requires: first-time homebuyer (no ownership in past 3 years), income below 80% area median income (AMI) for most programs (some allow up to 120%), minimum credit score 640, completed homebuyer education course, and the home as your primary residence. Some programs are open to all buyers regardless of first-time status. Check your eligibility.
Can I use down payment assistance with an FHA loan?
Yes. Most DPA programs are designed to work with FHA, conventional, VA, and USDA loans. FHA loans require only 3.5% down, so a $10,000-$15,000 DPA grant can cover the entire down payment plus closing costs. Some DPA programs are specifically designed for FHA loans and offer combined down payment + closing cost assistance.
What states have the best down payment assistance programs in 2027?
Best DPA states in 2027: California (CalHFA up to $20K), Texas (My First Texas Home up to $25K), Florida (HFA up to $15K), New York (SONYMA up to $15K), Colorado (CHFA up to 4% of loan), Washington (WSHFC up to $10K), and North Carolina (NCHFA up to 3% of loan). Each state has different income limits and requirements. Compare DPA lenders.
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Down Payment Assistance 2027: 4,500+ Programs, Grants to $25K, State-by-State Guide
Down payment assistance 2027: 4,500+ programs nationwide. 4 types: grants (never repay, $5K-$15K), forgivable loans ($20K-$25K, forgiven 5-10 yrs), deferred loans (repay at sale), low-interest 2nd mortgages. Top states: CA ($20K), TX ($25K), FL ($15K), NY ($15K), CO (4% of loan). Qualify: first-time buyer, income <80% AMI (some to 120%), credit 640+, homebuyer education. Works with FHA, conventional, VA, USDA. 6,600 monthly searches.
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