Down Payment Assistance Programs 2026: Get $5K-$25K FREE Money | Complete List
Emily Rodriguez
Down Payment Assistance Expert | 11+ Years
NMLS #834921 | Helped 1,500+ Buyers Get FREE Money
Get FREE down payment assistance! Complete 2026 list of federal, state, and local programs offering $5K-$25K in grants and forgivable loans. 100% financing possible with DPA + FHA/VA. Learn requirements, how to apply, and which programs stack.
💰 Get FREE Down Payment Money - Find Programs Near You
Discover down payment assistance programs in your area. Get matched with lenders who offer DPA. Free, no obligation.
Find Down Payment Assistance Programs →What is Down Payment Assistance (DPA)?
📋 DPA Definition:
Down Payment Assistance (DPA) is FREE or low-cost money provided by government agencies, nonprofits, or employers to help homebuyers cover down payment and closing costs. DPA comes as grants (never repay), forgivable loans (forgiven after X years), or deferred loans (repay when you sell/refinance).
Example:
• Purchase price: $300,000
• FHA loan (3.5% down): $10,500 needed
• DPA grant: $10,500 ✅
• Your out-of-pocket: $0!
• Plus: DPA can cover closing costs too ($6K-9K)
Types of Down Payment Assistance
Type #1: Grants (Best - Never Repay)
FREE money you never have to repay. Most valuable type of DPA.
Examples:
- • HUD Good Neighbor Next Door: 50% discount (up to $100K+ savings)
- • State housing finance agencies: $5K-$15K grants
- • Employer assistance: $5K-$25K grants
- • Nonprofit programs: $2K-$10K grants
Type #2: Forgivable Loans (Forgiven After X Years)
Loan that's forgiven if you stay in home X years (typically 3-10 years). If you sell/refinance early, you repay.
Example:
• $15,000 forgivable loan
• Forgiven after 5 years
• If you stay 5+ years: $0 owed ✅
• If you sell in year 3: Repay $6,000 (40% remaining)
• Forgiveness schedule: 20% per year
Type #3: Deferred Loans (Repay When You Sell)
0% interest loan with no monthly payment. Repay when you sell, refinance, or pay off first mortgage.
Example:
• $10,000 deferred loan at 0% interest
• No monthly payment
• Repay when you sell (could be 10+ years)
• Benefit: Use $10K now, repay later with inflated dollars
Type #4: Second Mortgages (Low/No Interest)
Second mortgage with low/no interest and low monthly payment. Repay over time or when you sell.
Example:
• $12,000 second mortgage at 1% interest
• 10-year term
• Monthly payment: $106/month
• Or: Balloon payment when you sell
Top Federal Down Payment Assistance Programs 2026
Program #1: FHA Loans (3.5% Down) + DPA = 100% Financing
Combine FHA's low 3.5% down payment with DPA grants to get 100% financing.
How It Works:
• FHA requires 3.5% down (580+ credit)
• DPA grant covers 3.5% down + closing costs
• Result: $0 out of pocket!
Example: $300K home
• FHA down payment: $10,500
• Closing costs: $7,500
• Total needed: $18,000
• DPA grant: $18,000 ✅
• Your cost: $0!
Get FHA pre-approval and ask about DPA programs.
Program #2: VA Loans (0% Down) + DPA = Cover Closing Costs
VA loans require 0% down, but you still need $6K-12K for closing costs. DPA can cover it!
How It Works:
• VA loan: 0% down required ✅
• Closing costs: $6K-12K
• DPA grant: $6K-12K to cover closing costs
• Result: $0 out of pocket!
Example: $350K home
• Down payment: $0 (VA)
• Closing costs: $9,000
• DPA grant: $9,000 ✅
• Your cost: $0!
Program #3: USDA Loans (0% Down) + DPA = 100% Financing
USDA loans require 0% down for rural properties. DPA covers closing costs.
Requirements:
- • Property in USDA-eligible rural area
- • Income limits apply (varies by area)
- • 640+ credit score
- • DPA covers $5K-10K closing costs
Program #4: HUD Good Neighbor Next Door (50% Discount)
MASSIVE savings! Teachers, firefighters, EMTs, and law enforcement get 50% off HUD homes.
How It Works:
• HUD lists foreclosed homes
• Eligible buyers get 50% discount
• Must live in home 3 years
• Can combine with FHA loan (3.5% down on discounted price)
Example: $200K HUD home
• 50% discount: $100K purchase price ✅
• FHA 3.5% down: $3,500
• Savings: $96,500!
Eligible professions: Teachers (K-12), Law enforcement, Firefighters, EMTs/paramedics
Ready to explore DPA options? Compare lenders who specialize in down payment assistance programs and can help you stack multiple grants.
💡 Get Matched with DPA Programs
Find down payment assistance programs you qualify for. Get matched with lenders who offer DPA.
Find DPA Programs Near You →🎯 Get FREE Down Payment Money
Discover all DPA programs you qualify for. Get $5K-$25K in grants and forgivable loans. Free search.
Search DPA Programs Now →State Down Payment Assistance Programs
Find Programs in Your State
💡 How to Find Your State's Programs:
- 1. Google: "[Your State] housing finance agency DPA"
- 2. Visit: HUD.gov/buying/localbuying
- 3. Ask your lender about state programs
- 4. Check: DownPaymentResource.com
Want personalized help finding programs? Get matched with a DPA specialist who knows all programs in your state and can maximize your grants.
🏠 100% Financing Possible with DPA
Combine FHA/VA with DPA grants for $0 down payment. Get pre-approved and see your options.
Get Pre-Approved with DPA →DPA Requirements & Eligibility
Requirement #1: First-Time Homebuyer (Usually)
Most DPA programs require first-time buyer status (haven't owned home in past 3 years).
Exceptions:
- • Single parents (even if owned before)
- • Displaced homemakers (divorce/separation)
- • Buying in targeted revitalization area
- • Veterans (some programs)
Requirement #2: Income Limits
Many programs have income limits (typically 80-120% of area median income).
Example Income Limits:
• Los Angeles County: $118,000 (1-2 person household)
• Dallas County: $95,000 (1-2 person household)
• Miami-Dade County: $88,000 (1-2 person household)
Higher limits for larger households and high-cost areas
Requirement #3: Homebuyer Education Course
Most DPA programs require 6-8 hour homebuyer education course (online or in-person).
Course Details:
- • Cost: $50-$150 (sometimes free)
- • Duration: 6-8 hours
- • Format: Online or in-person
- • Topics: Budgeting, credit, mortgage process, home maintenance
- • Certificate required for DPA approval
Requirement #4: Primary Residence
Must use home as primary residence (not investment property or vacation home).
Occupancy Requirements:
- • Must move in within 60 days of closing
- • Must live in home minimum 1-10 years (program-specific)
- • Cannot rent out property
- • If you violate, must repay DPA
Frequently Asked Questions
Need expert guidance on DPA? Connect with a down payment assistance expert who can answer all your questions and help you apply.
💰 Get FREE Down Payment Money Today
Find down payment assistance programs you qualify for. Get matched with lenders who offer DPA. Start with $0 down!
Find DPA Programs & Get Approved →Free search • No obligation • $5K-$25K available • 100% financing possible