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The down payment is the hard part. This is where it comes from.

Down payment assistance is a grant or a low-cost second loan from a state housing agency or a lender program, layered on top of an FHA, conventional or USDA first mortgage. In New Jersey the state program alone can cover the down payment and closing costs on a typical first home.

FormGrant or deferred second loan
Pairs withFHA, conventional, USDA, VA
IncomeLimits vary by county
EducationHomebuyer course, usually online
See if I qualifyCall (800) 511-3330
4.4 on Google · 214 reviewsNMLS 13988Licensed in 15 states + DC
Who it's for

Is down payment assistance right for you?

  • First-time buyers with steady income but little saved
  • Buyers whose savings would be wiped out by the down payment
  • Teachers, first responders and other professions with dedicated programs
  • Anyone buying in a state with an active housing agency program
How it works

Three steps from here to closing.

Find the program

We match your county, income and profession to the assistance available and confirm you fit.

Homebuyer course

Most programs require an approved course, usually a few hours online.

Close with both loans

The first mortgage and the assistance close together. Many second loans are forgiven after a set number of years.

What you'll need

Requirements at a glance.

  • Household income within the program limit for your county
  • Credit score that meets the first mortgage program (often 620 to 640)
  • Primary residence, and usually first-time buyer status
  • Completion of an approved homebuyer education course
  • Purchase price within the program limit
Straight talk

The upside, and what to weigh.

Why people choose it

  • Can cover most or all of the down payment and closing costs
  • Many second liens carry 0% interest and are forgiven over time
  • Layers on the low-rate first mortgage you would use anyway

Things to consider

  • Income and price limits apply, and programs change through the year
  • Some assistance must be repaid if you sell or refinance early
Common questions

Asked on almost every first call.

Is it free money?

Grants are. Deferred second loans are repaid when you sell or refinance, and some are forgiven after five to ten years.

Which states?

Every state we lend in has at least one program. New Jersey, Pennsylvania, Maryland, Virginia, Florida, Georgia, Texas and Colorado all have active agency programs.

Does it raise my rate?

Some programs price the first mortgage slightly higher. We show you the total cost against a standard loan with your own down payment.