Down payment assistance programs & options

by Mary Kay Daughters/ Jeff Brown 06/22/2025

Affording a down payment on a home can be a major hurdle in the homebuying process, but luckily, there are down payment assistance options to help. With a down payment assistance program, first time homebuyers can get better mortgage terms and afford the house of their dreams.

Here is the most important info about these assistance programs for buyers to know:

How do down payment assistance programs work?

Down payment assistance programs are provided by a variety of institutions, including local government agencies and nonprofits. If you're eligible - decided based on household income, credit history and other factors depending on state - you can either receive a grant or special type of loan to pay for your down payment.

What are the different types of down payment assistance?

There are several types of assistance programs to help new buyers with a down payment:

Grants
Forgivable loans
Deferred-payment loans
Low-interest loans
Matched saving accounts

Grant programs offer monetary assistance without expectation of repayment. Other programs like forgivable loans or low-interest loans can serve as affordable second mortgages to cover the cost.

Who is eligible for assistance?

Eligibility requirements for down payment assistance programs depend on the individual program. Generally, you need a good credit score and a stable debt to income ratio. Some other requirements include:

The home must be in a specific location or county.
You must live in the home for a minimum amount of time (usually 3 to 10 years).
You have to be a first-time homebuyer.
You have to take a homebuyer education class.

How to apply for down payment assistance

The availability of down payment assistance is different in every area of the country. Check online or with a loan officer for eligibility requirements, applications and details.

Should you consider applying for a down payment grant or other assistance program? Remember these key points when factoring the option into your financial decisions.

About the Author

Mary Kay Daughters/ Jeff Brown

Thank you for visiting our website! We're the Realtor team of Mary Kay Daughters & Jeff Brown. Please be sure to look at our “Promotion Event Tab”, at top of page, for typical property marketing event examples. As members of the Greenwich, Darien & Connecticut State MLS Boards, we are your single-source Realtor team who has Shown, Listed & Sold many dream-homes, throughout Fairfield, Litchfield & New Haven Counties.

We work hard to develop an understanding of your lifestyle & living goals to: 1). Assist you in finding & buying your dream home. 2). Estimate the market value of your home with a free Comparative Market Analysis (CMA), in order to sell your home. When Buying, we make your home search fun and keep your property information organized. When Selling, we use special marketing techniques and as a professional photographer, act as your personal public relations property promoter!

Whether you're in the beginning of your real estate search or, you know exactly what you're looking for, or you want to sell, you'll benefit from our experience and area knowledge. Call, Email or Text us anytime! We would be honored to put our real estate experience to work, for you!