How These Programs Are Structured
- Grants — money that doesn't need to be repaid, often the most competitive/limited funding.
- Forgivable second loans — a no-interest loan that's forgiven if you stay in the home for a set period (often 3-10 years).
- Deferred-payment loans — repaid only when you sell, refinance, or pay off the first mortgage.
Typical Eligibility Requirements
Most programs require completing a homebuyer education course, staying under an income limit tied to your area's median income, and using the home as your primary residence — investment properties and second homes are almost universally excluded.
Combining DPA With Your First Mortgage
Most DPA programs are designed to layer on top of an FHA, conventional, or VA first mortgage rather than replace it — your lender needs to be approved to originate loans alongside that specific state program, so ask early in the process.
Where to Start Your Search
Your state housing finance agency's website is the authoritative source, since third-party aggregator sites are often outdated on funding availability and income limits.
This page is for educational purposes and isn't personalized financial or tax advice. Figures, rates, and program details change frequently — confirm current terms directly with lenders, tax professionals, or the IRS before acting.