Down Payment Assistance Programs by State
Most states offer some form of down payment assistance, and many buyers qualify without realizing it. These programs typically come as a grant, a low-interest second loan, or a forgivable loan tied to how long you stay in the home.
Arizona: Home in Five and Home Plus
Arizona's Home in Five program offers down payment and closing cost assistance up to a percentage of the loan amount, structured as a soft second mortgage. Home Plus works similarly with a slightly different income and property eligibility structure. Both pair well with FHA and conventional financing.
Texas: TDHCA
The Texas Department of Housing and Community Affairs offers down payment assistance up to 5% of the loan amount through participating lenders, usable with FHA, VA, USDA, or conventional loans. Income limits apply and vary by county.
Pennsylvania: PHFA K-FIT
Pennsylvania Housing Finance Agency's K-FIT program provides a forgivable second loan for down payment and closing costs, forgiven over a set period as long as you remain in the home. It's designed to pair directly with PHFA's first-mortgage programs.
Florida: FL Housing 0% Second Mortgage
Florida Housing offers a zero-interest second mortgage specifically for down payment and closing cost help, deferred until the home is sold, refinanced, or the first mortgage is paid off.
Virginia: VHDA Plus Second Mortgage
Virginia Housing's Plus Second Mortgage pairs with their first-mortgage programs to cover down payment and closing costs, structured as a low-interest second loan.
Other states I'm licensed in
Oregon (OHCS programs), Utah (UHC FirstHome), Idaho (IHFA homebuyer programs), Kentucky, Tennessee, Iowa, Kansas, Missouri, Alabama, Colorado, Washington, Hawaii, and California all have their own state or local DPA programs. Availability, income limits, and property eligibility vary by county, so the right move is checking your specific location.
Does DPA money have to be paid back?
It depends on the program. Grants typically don't. Forgivable second loans don't, as long as you meet the residency requirement. Deferred and low-interest second mortgages usually do get repaid, just not immediately.
Frequently Asked Questions
Can I combine down payment assistance with an FHA loan?
Yes, most state DPA programs are specifically designed to pair with FHA financing, since FHA's low down payment requirement makes the combination especially effective for first-time buyers.
Is there an income limit for down payment assistance?
Most programs cap eligibility at 80 to 140% of the area median income, depending on the state and sometimes the specific county.
Does down payment assistance affect my interest rate?
It can modestly affect pricing, since lenders treat DPA-assisted loans slightly differently. It's usually a small tradeoff against the benefit of the assistance itself.
Emmett Clark
Licensed Mortgage Loan Officer · NMLS #233747 · 20+ Years Experience
This article has been reviewed for accuracy by Emmett Clark, a licensed mortgage professional serving homebuyers across 18 states including California, Texas, Florida, Arizona, and Colorado. Last updated: July 10, 2026.
About Emmett NMLS #233747
Emmett Clark (NMLS #233747) is a licensed mortgage professional with 20+ years of experience helping families achieve their homeownership dreams. Licensed in 18 states nationwide, Emmett specializes in finding the right mortgage solution for each client's unique situation. Powered by Loan Factory, Emmett provides access to competitive rates and a wide variety of loan programs including conventional, FHA, VA, and down payment assistance programs.
Work with Emmett