How to Find Down Payment Assistance to Buy a Home

Making a down payment on a home is one of the leading factors that prevents renters from becoming homeowners. Even with a minimum of 3.5% down with an FHA loan, a down payment can still be thousands of dollars out of reach for those who aspire to become homeowners. 

Thankfully, there's down payment assistance. We have some insights on how to find the right down payment assistance for you to make your dream of owning a home come true.

Nationally, down payment assistance (DPA) programs exist, and there are actually more than 2,000 of them. They help potential homeowners with grants or loans that reduce the amount they need to save for a downpayment. 

According to The Mortgage Reports, there are four types of DPA:

1. Loans that must be paid down with your first mortgage
2. Loans with deferred payments, which are only paid when you move, sell, or refinance
3. Loans that are forgiven over a set number of years and only need to be repaid if you move, sell, or refinance
4. Grants, which are basically gifts that never need to be repaid

The U.S. Department of Housing and Urban Development (HUD) lists countless homeownership assistance programs along with DPA here. 

Locally, there may be programs in your city, especially if you're a first-time homebuyer. There's even the option of checking to see if your profession makes you eligible for down payment assistance. Law enforcement officers, emergency medical technicians, firefighters, and teachers can utilize the Neighbor Next Door Program, which only requires a $100 down payment for those who are eligible. 

Lastly, if you're looking for help with DPA, consult with your real estate agent or lender. They may have resources or helpful tips.