Mortgage 101
August 22, 2023

Unlock Affordable Housing with Down Payment Assistance

Estimated reading time: 2 minutes

If you’re thinking about buying a home, don’t let the down payment hold you back. Down payment assistance programs are available nationwide to provide homebuyers with the funds necessary for upfront costs, allowing homeownership to be possible for more eligible buyers.

Why Down Payment Assistance Matters

Buying a home comes with certain costs. For some loan programs, your down payment is one of the largest upfront costs. ATTOM Data Solutions, a real estate data company, cites the median down payment was $26,250 in the first quarter of 2023.

With high listing prices sweeping across the country, a down payment can be a major roadblock for many perspective buyers. Down payment assistance (DPA) can help you save money upfront and can provide a boost to your long-term financial stability.

There are over 2,000 down payment assistance programs available nationwide. Each program has different requirements, qualifications, and benefits.

State, city, and county housing finance agencies are common providers. However, nonprofits, employers, and mortgage lenders may also grant assistance.

Down Payment Assistance Qualifications

Many down payment assistance programs are aimed toward first-time homebuyers, defined as a person who hasn’t owned a home in the past three years. According to Freddie Mac, 38% of DPA are open to eligible repeat homebuyers. Some programs are designed for specific groups of people based on their income levels, job, and even the area you’re planning to live.

Many DPA programs require homebuyers to take a homeownership education course. This upfront course covers the steps and process of buying a home, financing basics, and homeownership responsibilities. This way, you’re confident and prepared for your homeownership success!

Our Down Payment Assistance Programs

Homestead Funding accepts down payment assistance for eligible homebuyers. Our state bond programs include:

  • Connecticut Housing Finance Authority
  • Florida Housing Finance Corporation
  • State of New York Mortgage Agency

Our new specialty program, HomeReach, combines an FHA mortgage with our exclusive DPA program. With no first-time homebuyer requirements, no income limits, and two options to choose from, HomeReach is perfect for borrowers who want to use minimal out-of-pocket funds.

The Best Ways to Find Down Payment Assistance Programs

A woman sits on her couch with her laptop on her lap. Her legs are up on her wheelchair as she smiles at her dog.

We recommend searching for programs through the Department of Housing and Urban Development (HUD), non-profit organizations, local government, and the government grant database.

If you’re searching for a down payment assistance program that may work for you, contact us! As many DPA programs are on the local level, a dedicated Loan Originator will have the expertise to find the best opportunities for you.

Ready to get started?

Homestead Funding offers exceptional customer service and a convenient mortgage process. Whatever your financing needs, our goal is to exceed your expectations.