Down Payment Assistance: What It Is and How to Find It

Many buyers think they need 20% down. In reality, many loans allow far less, and thousands of state, county and city programs help with down payments and closing costs.

Common Types of Help

• Grants that never have to be repaid
• Forgivable second loans that are forgiven after you live in the home a set number of years
• Deferred or low-interest second loans
• Matched savings programs
• Employer and union homebuyer benefits

Where to Look

• Your state housing finance agency
• Your city or county housing department
• Lenders that participate in state first-time buyer programs
• HUD's local homebuying programs listing for your state