Down-payment assistance is not one federal check. In 2026, most programs are offered by state housing finance agencies, cities, counties, housing authorities or approved nonprofit partners. Assistance may be a grant, forgivable loan, deferred-payment second mortgage or repayable loan, and the cheapest-looking option can carry occupancy, resale or repayment conditions.
Information checked: September 10, 2026.
Find official programs
Use HUD's homebuying programs by state, a state housing finance agency, and local government housing pages. A HUD-approved housing counselor can help identify legitimate programs. Verify that applications are open and that the lender or counselor is approved for that specific program.
First-time buyer definitions
Many programs treat a person as first-time if they have not owned a principal residence during the prior three years, but definitions and exceptions vary. Veterans, displaced homemakers, single parents, educators or buyers in targeted areas may have special pathways. Read the program definition instead of judging from the name.
Eligibility beyond income
Programs may limit household income, purchase price, property type and location. They can require owner occupancy, homebuyer education, a minimum credit score, debt-to-income limits, reserves and use of an approved lender. Funds may run out before the published program year ends.
Understand the assistance form
A grant may have no scheduled repayment, while a forgivable loan can become due if the home is sold or occupancy ends before a set period. A deferred second mortgage may be due at sale, refinance or payoff. Ask for the note, deed restriction and payoff examples before comparing offers.
Protect the transaction
Get a Loan Estimate for the first mortgage and a written assistance disclosure. Compare the combined interest rate and fees with a loan that has less assistance. Never send a wire using emailed instructions without independently confirming the recipient by a trusted phone number.
Action checklist
Start at the official agency page linked below and confirm that it applies to your location, tax year, account, property, or claim. Write down the deadline and the event that starts it. Gather notices, contracts, statements, payment records, identification, and dated correspondence before submitting. Save a complete copy, confirmation number, delivery proof, and the name of any agency representative. Review the resulting decision promptly and calendar every appeal or follow-up date.
Common mistakes to avoid
Do not rely on an undated search snippet, a commercial calculator, or a rule from another state or county. Do not assume an application pauses a lawsuit, collection action, tax deadline, or housing deadline unless the responsible authority confirms it. Avoid sending original records or sensitive information through an unverified link. When a deadline or legal consequence is disputed, obtain the written rule and consider qualified local advice.
Frequently asked questions
Is assistance free money?
Sometimes it is a grant, but many programs use loans or conditional forgiveness.
Must I use an approved lender?
Often yes. Confirm before applying for a mortgage.
Can assistance cover closing costs?
Some programs allow it, but eligible uses and maximums vary.
Summary
Start with HUD's state homebuying directory and your state housing finance agency. Compare the assistance agreement, first-mortgage rate, fees, required cash, occupancy period and repayment trigger before signing. Verify current agency instructions before acting.