The Complete Guide to Down Payment Assistance Programs in 2026
Stop Wishing. Start Closing. Get 100% Financing Without the Red Tape.
Most homebuyers think they have two choices: save for years or beg the government for a loan with a thousand rules. At Loans by Emmett, we offer a third way—exclusive Grant Programs that give you the cash you need without 5-year residency traps or "shared equity" nightmares that steal your future wealth.
Our Secret Weapon
2026's Best-Kept Mortgage Secret
- 2% or 3.5% Grant
Direct gift toward your down payment
- No 2nd Mortgage
No lien, no extra payment, no "silent second"
- No Residency Requirement
Move in 2 years? The money is yours to keep.
- 100% Your Appreciation
No state partner taking your equity gains
What is Down Payment Assistance (DPA)?
Down Payment Assistance (DPA) refers to programs that help homebuyers cover the upfront costs of purchasing a home—specifically the down payment and sometimes closing costs. These programs are offered by federal, state, and local governments, non-profit organizations, and private lenders.
According to the National Association of Realtors, the down payment is the #1 obstacle for first-time homebuyers. With median home prices exceeding $400,000 nationally and $800,000+ in California, saving 20% ($80,000-$160,000) can take a decade or more. DPA programs bridge this gap, allowing qualified buyers to purchase sooner.
However, not all DPA programs are created equal. Some are true gifts that never need to be repaid. Others are forgivable loans that disappear after a few years of on-time payments. And some—like California's Dream For All—are shared equity arrangements that can cost you tens of thousands of dollars when you eventually sell.
DPA programs available nationwide
Average DPA benefit amount
Of buyers unaware of DPA options
The 3 Types of Down Payment Assistance
Understanding these differences can save you thousands—or cost you a fortune.
True Grants
Free money that never needs to be repaid. No 2nd mortgage, no lien, no residency requirement. You keep 100% of your home's appreciation.
- Our 3.5% FHA Grant
- Some employer assistance programs
- Non-profit homebuyer grants
Forgivable Loans
A loan that's forgiven after a set period (usually 36-60 months of on-time payments). If you sell or refinance early, you repay the full amount.
- Chenoa Fund
- CalHFA MyHome (deferred)
- Kentucky Housing Corp
Shared Equity Loans
You repay the original loan PLUS a percentage of your home's appreciation. The state becomes your "partner"—and takes your profit.
- California Dream For All
- DC Open Doors EAHP
- Some state "silent second" programs
Real-World DPA Examples: See the Difference
Let's compare three buyers purchasing the same $500,000 home with different DPA programs.
Maria uses our 3.5% Grant
5 years later: Maria sells for $650,000
James uses Chenoa Fund
If James sells in year 2:
If James waits until year 4:
Sarah uses Dream For All
5 years later: Sarah sells for $650,000
Sarah's "free" $100,000 cost her $30,000 extra in shared appreciation.
Maria's $17,500 grant was truly free.
DPA Programs We Offer
We prioritize programs that give you cash without taking a "partner" in your equity.
The "Free Gift" Grant
FHA First Mortgage
- 2% or 3.5% Grant
- No 2nd Mortgage or Lien
- No Residency Trap
- Closes Same Speed as FHA
Chenoa Fund
National Program
- 3.5% to 5% DPA
- Forgivable After 36 Payments
- Works with FHA & Conventional
- No Funding Wait Lists
State Programs
Full Suite Access
- CalHFA, MyHome, ZIP (CA)
- DC Open Doors & HPAP
- KHC (Kentucky)
- And 16+ More States
Do You Qualify for Down Payment Assistance?
Most DPA programs share similar requirements. Here's what lenders typically look for.
Common Requirements
- Credit Score: 620+
Some programs accept 580 with compensating factors
- Income Limits Apply
Typically 80-150% of Area Median Income (AMI)
- Primary Residence
Most programs require owner-occupancy (no investors)
- Homebuyer Education
Online course (2-8 hours) often required
- DTI Under 50%
Total debt payments must be manageable. Use our affordability calculator
Common Misconceptions
- "I need to be a first-time buyer"
Many programs accept repeat buyers, especially if you haven't owned in 3+ years
- "I make too much money"
Income limits are generous—often $150K+ for a family in high-cost areas
- "DPA takes forever to close"
Our grant program closes in 30-45 days—same as standard FHA
- "I need perfect credit"
FHA-based programs accept 580-620 scores
- "All DPA programs are the same"
Huge differences between grants, forgivable loans, and shared equity
State-by-State DPA Programs
We're licensed in 18 states and can access programs in each. Here are some highlights.
CalHFA MyHome, ZIP, Dream For All, GSFA Platinum
Learn more →TDHCA My First Texas Home, Homebuyer Assistance Program
Learn more →Kentucky Housing Corporation (KHC) with forgivable 2nd
Learn more →VHDA Plus, Down Payment Assistance Grant
Learn more →CHFA SmartStep, Metro DPA programs
Learn more →WSHFC Home Advantage, House Key Opportunity
Learn more →Why Use a Broker for DPA?
The big banks often shy away from DPA because it's "too much paperwork."
We're here for it.
More Options
We aren't limited to one state fund. If one program runs out of money, we switch you to another—instantly. No waiting for the next funding cycle.
No Overlays
We work with wholesale lenders who follow the actual program rules, not "bank-specific" hurdles that disqualify you for no reason.
Speed
Our grant program closes just as fast as a standard FHA loan. No waiting for state agency signatures or committee approvals.
"Free Money" Shouldn't Come with a 50-Page Contract
We cut through the red tape of programs like the California Dream for All lottery and get you into a home with a clean, gift-based grant that protects your future equity.
State funds often exhausted in days. Our private grant programs are available year-round.
Emmett Clark | Licensed in 18 States