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
Not sure how much you actually need up front? See real numbers for 0%, 3%, 3.5%, and 20% down.
Wondering how much you really need?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. See the true cost with our shared equity calculator.
- 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.
Down Payment Assistance FAQs
Click any question to expand the answer.
What's the difference between a grant and a forgivable loan for down payment assistance?
A grant is free money that doesn't need to be repaid—ever. Our 3.5% FHA gift is a true grant with no strings attached. A 'forgivable loan' (like the Chenoa Fund) is forgiven after 36 on-time payments, but if you sell or refinance before then, you must repay the full amount. State shared equity loans require you to pay back the original amount PLUS a percentage of your home's appreciation when you sell—which can cost tens of thousands more than you received.
Do I have to stay in the home for a certain number of years with DPA?
With our private grant program: No! You can sell or refinance whenever you want with no penalty or repayment. The Chenoa Fund requires 36 on-time payments for full forgiveness. State programs typically require 5-10 years of residency. If you move or refinance before that period, you'll owe the full DPA amount back—and with shared equity programs like California's Dream For All, you'll also owe their share of your home's appreciation.
What if I don't qualify for the 3.5% gift program?
We have multiple backup options! The Chenoa Fund has broader eligibility and works nationwide. State programs like CalHFA MyHome, Kentucky's KHC, or DC Open Doors may work for your situation. As a broker licensed in 18 states, we can pivot to another program the same day—we're not limited to a single funding source like big banks.
How long does it take to close with down payment assistance?
Our private grant closes in the same timeframe as a standard FHA loan—typically 30-45 days. State programs often take longer (45-60 days) because they require additional agency approvals and paperwork. Lottery programs like California's Dream For All can delay your purchase by months if you don't win a spot immediately. Speed matters in competitive markets.
What credit score do I need for down payment assistance?
Credit requirements vary by program. Our FHA-based grant program requires a minimum 620 FICO score. The Chenoa Fund typically requires 620-640 depending on the option. Some state programs accept scores as low as 580 with compensating factors. If your credit needs work, we can refer you to credit counseling resources. Check out our first-time buyer guide for credit-building tips.
How is DPA different from a gift from family?
A family gift requires a signed gift letter stating the money doesn't need to be repaid, plus documentation of the donor's ability to give (bank statements). DPA programs provide institutional funding with standardized paperwork that's often easier to document. Both can be combined in some cases—you might use DPA for the down payment and a family gift for closing costs. Learn more about how gifts work in our purchase loans guide.
Emmett Clark
Licensed Mortgage Loan Officer · NMLS #233747 · 20+ Years Experience
Down payment assistance guides
Guides & articles on down payment help
Gift Funds: The Rules for Down Payment Gifts
A family member can give you money for your down payment, and on most loan types the entire down payment can be a gift. The key rules: it has to be a true gift with no repayment expected, it must come from an acceptable source, and it has to be documented with a gift letter and a clear paper trail.
Read more
How Can You Buy a House With No Money Down?
Two true zero-down loans exist: VA for veterans and military, and USDA for eligible rural and suburban homes. A few other paths get you close.
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Down Payment Assistance Programs by State
Most states offer some form of down payment assistance, and many buyers qualify without realizing it.
Read more
Down Payment Reality Check: How Much You Actually Need
You don't need 20% down to buy a house.
Read more
How Much Down Payment Do You Need for a Conventional Loan?
The 20% rule is a myth. On a conventional loan you can put down as little as 3% as a first-time buyer or 5% otherwise, with 5% required on high-balance loans. Here is how to find your real down payment number.
Read more
First-Time Homebuyer Loan Options Explained
First-time buyers have more loan options than most people realize, ranging from zero down payment programs to specialized conventional products built specifically for buyers with limited savings.
Read more"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.
Questions about down payment assistance? Ask Emmett →
Emmett Clark | Licensed in 18 States