Common assistance structures
Assistance may be provided as a grant, forgivable loan, deferred-payment second lien or repayable second mortgage. The structure affects repayment, refinance and sale decisions.
- Grant or lender credit
- Forgivable subordinate financing
- Deferred-payment second mortgage
- Amortizing second mortgage
- Eligible community or employer programs
Eligibility varies
Programs may apply household-income limits, purchase-price limits, location requirements, first-time buyer definitions, occupancy rules, education requirements and approved-lender restrictions. Funding can also be limited or temporarily unavailable.
Compare the full financing package
Assistance may reduce upfront cash but can affect rate, fees, future equity or repayment obligations. Compare the assisted option with other eligible low-down-payment financing using complete payment and cost estimates.
Common questions
Frequently asked questions
Is down-payment assistance free money?
Sometimes assistance is structured as a grant, but many programs use a forgivable, deferred or repayable second loan. Review the exact repayment and recapture terms.
Do assistance programs require first-time buyer status?
Some do and some do not. Each program defines borrower, income, property and occupancy eligibility separately.
Can assistance pay closing costs too?
Some programs permit eligible funds to cover down payment, closing costs or both, subject to program limits and first-mortgage requirements.