Understand what assistance may—and may not—cover.

What is down payment assistance?

Down payment assistance may be offered through government agencies, housing authorities, nonprofit organizations, employers, or other approved programs. Assistance can sometimes take the form of a grant, forgivable loan, deferred-payment loan, or repayable second mortgage.

Questions to ask

• Is the program currently funded and available?
• What income, credit, occupancy, and property requirements apply?
• Is homebuyer education required?
• Does the assistance need to be repaid?
• Are there resale, refinance, or occupancy restrictions?
• How does assistance affect the first mortgage, payment, rate, or closing costs?

Assistance does not always mean zero cash needed

Even when a program supports down payment or closing costs, buyers may still need funds for items such as inspections, earnest money, appraisal, reserves, or costs not covered by the program.