Direct Answer
Down payment assistance (DPA) is available in every state and can cover 3% to 20% of your home purchase. A qualifying first-time buyer making $75,000/year could receive $10,000 to $25,000 in combined assistance — enough to cover the full down payment on a $250,000 to $400,000 home. Most programs cap household income at 80% to 120% of the AMI (area median income) for your county. Use the Home Affordability Calculator to estimate a target price range that fits DPA limits.
Last verified on: June 4, 2026
Editorial note: DPA (down payment assistance) programs change frequently as state housing finance agencies allocate and deplete funding. This guide is a snapshot of major programs available in mid-2026. Always verify current availability, income limits, and program terms with the official agency before applying.
Research method: Daily Calcs reviewed state housing finance agency websites, HUD (U.S. Department of Housing and Urban Development) official DPA lists, and Down Payment Resource program data. All sources verified on June 4, 2026.
Types of Down Payment Assistance
| Type | Repayment? | Typical amount | Best for |
|---|---|---|---|
| Grant | No repayment (after 3-10yr occupancy) | $5,000-$25,000 | Buyers who want no ongoing obligation |
| Forgivable loan | Forgiven over 5+ years (20%/year) | $5,000-$50,000 | Buyers who plan to stay 5+ years |
| Deferred loan | Repay at sale/refi at 0% interest | $10,000-$60,000 | Buyers who can wait for repayment |
| Amortizing second loan | Monthly payments, 1-3% interest | $10,000-$30,000 | Buyers who want small payment now |
| Match savings (IDA) | Buyer saves, program matches 2:1-4:1 | Up to $20,000 match | Buyers with time to save |
Notable State Programs in 2026
California
- Forgivable Equity Builder Loan — Up to $148,000 for qualifying first responders, teachers, and school employees. Forgiven after 10 years in the home.
- CalHFA Dream For All — Deferred 0% interest loan up to 20% of purchase price. Repay when you sell or refinance.
- Income limit: 80-120% AMI depending on county.
Texas
- My First Texas Home — Grant up to 5% of mortgage amount (approx $15k on $300k home). No repayment after 3 years.
- Texas Statewide Homebuyer Program — Offers combined DPA and mortgage rate reduction.
- Income limit: Up to $99,500 (varies by county).
New York
- SONYMA (State of New York Mortgage Agency) — Low-rate second mortgage for DPA and closing costs. 0-3% interest, deferred for some programs.
- Income limit: Up to $124,700 (varies by county).
Florida
- State Housing Initiative Partnership (SHIP) — County-administered grants. Amount varies by county. Some counties offer up to $40,000.
- HFA Preferred — DPA combined with Fannie Mae conventional loans.
- Income limit: 80-140% AMI depending on county.
Washington
- Washington State Housing Finance Commission DPA — Deferred 0% loan up to $50,000 for first-time buyers. No payment until sale/refi.
- Income limit up to $115,000 (varies by area).
Illinois
- Illinois Housing Development Authority (IHDA) Access Forgivable — $7,500 forgivable after 10 years, combined with lower mortgage rates.
- Income limit: Up to $95,200.
How DPA Affects Your Mortgage Payment
DPA changes your PITI (principal, interest, taxes, insurance) by reducing your loan amount or providing a second, low-cost loan. Here is the impact:
| Scenario | Loan amount | Down payment | Monthly P&I | Monthly DPA payment | Total monthly |
|---|---|---|---|---|---|
| No DPA | $240,000 | $60,000 | $1,517 | $0 | $1,517 |
| $15k deferred DPA (0%) | $240,000 | $60,000 | $1,517 | $0 (deferred) | $1,517 |
| $15k forgivable DPA | $225,000 | $75,000 | $1,422 | $0 (forgiven) | $1,422 |
| $15k amortizing DPA (2%) | $240,000 | $60,000 | $1,517 | $55 | $1,572 |
*$300,000 home, 20% down (base scenario), 6.5% fixed rate. DPA applied to down payment increases equity. Amortizing DPA adds a small monthly second mortgage payment.
Eligibility Requirements
Most DPA programs require:
- First-time buyer — No homeownership in the past 3 years (some programs exempt veterans and targeted areas)
- Income limit — Typically 80-120% of AMI (area median income) for your county
- Homebuyer education — 6-8 hour HUD-approved course, typically $50-$100 fee
- Property type — Primary residence only (no investment or second homes)
- Purchase price limit — Varies by county and program (typically $400k-$700k)
How to Apply for DPA
- Find programs in your state — Start at your state housing finance agency website or Down Payment Resource
- Check income limits — Use the AMI lookup for your county
- Complete homebuyer education — HUD-approved course (online, 6-8 hours)
- Find a participating lender — Not all lenders offer DPA products; ask upfront
- Get pre-approved — The lender processes both the mortgage and the DPA application
Calculator Methodology
DPA amounts and income limits in this guide come from official state housing finance agency websites and Down Payment Resource. Payment calculations use standard amortization at 6.5% for the first mortgage and 2% for amortizing DPA second mortgages.
Official and Supporting Sources
- HUD (U.S. Department of Housing and Urban Development): Homeownership assistance
- Down Payment Resource: DPA by state
- California CalHFA Forgivable Equity Builder
- Texas My First Texas Home
- NY SONYMA Down Payment Assistance
- FHA vs. conventional loan — which is cheaper in 2026?
- Closing costs explained — what to expect in 2026
- How much house can you afford on $80k, $120k, or $150k?
Next Step
Check your state housing finance agency’s current DPA offerings and income limits. Use the Home Affordability Calculator to find a price range where you qualify for DPA eligibility. Then estimate your full monthly payment with the Mortgage Calculator.
Frequently Asked Questions
DPA (down payment assistance) is a grant, zero-interest loan, or deferred-payment loan that helps first-time homebuyers cover their down payment and sometimes closing costs. Most DPA programs are administered by state housing finance agencies or local housing authorities and target households below 80% to 120% of the AMI (area median income).
DPA amounts vary significantly by state and program. Typical grants range from $5,000 to $25,000. California's Forgivable Equity Builder Loan offers up to $148,000 for qualifying first responders and teachers. Some programs cover the full 3%-5% down payment plus closing costs. Most are capped at 80-120% AMI.
It depends on the program type. Grants and forgivable loans do not require repayment if you stay in the home for a specified period (typically 3-10 years). Deferred-payment loans require repayment when you sell, refinance, or move out (often at 0% interest). Amortizing loans are repaid monthly like a second mortgage.
Grants are free money — no repayment required if you meet the occupancy period. Forgivable loans convert to grants over time (e.g., 20% forgiven per year for 5 years). Deferred loans require repayment when you sell but charge 0% interest. Second mortgage loans require monthly payments and often carry 1%-3% interest.
Yes. Most DPAs work with FHA (Federal Housing Administration) loans, conventional loans, VA (U.S. Department of Veterans Affairs) loans (for veterans), and USDA (U.S. Department of Agriculture) loans. Some programs require a specific loan type. Always confirm DPA compatibility with your lender before applying.
California leads with programs like Forgivable Equity Builder ($148k for teachers/first responders) and CalHFA Dream For All (deferred 0% loan). Texas offers the My First Texas Home grant (up to 5% of mortgage). Florida's State Housing Initiative Partnership (SHIP) varies by county. Washington has up to $50,000 in deferred DPA. New York's SONYMA offers low-rate second mortgages.
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