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First-Time Home Buyer Programs & Down Payment Assistance (2026)

MRBy Michael Reyes, CFP® Updated June 30, 2026 7 min read

Quick Answer

As of 2026 there are a record ~2,600 down payment assistance programs nationwide, with an average benefit around $18,000. First-time buyers (usually anyone who hasn't owned in 3 years) can combine low-down-payment loans — FHA 3.5%, conventional 3%, VA/USDA 0% — with grants or forgivable second mortgages from state, city, and employer programs. Start with your state housing finance agency and HUD's directory to find what you qualify for.

The biggest barrier to buying a first home is usually the down payment — and there's more help available than most buyers realize. As of 2026, a record number of assistance programs exist. Here's how they work and how to find yours.

Low-down-payment loan programs

ProgramMin. downBest for
Conventional (first-time)3%Good credit, want to drop PMI later
FHA3.5%Lower credit scores (from 580)
VA0%Veterans & service members
USDA0%Eligible rural & suburban areas

Down payment assistance (DPA)

~2,600 programs exist nationwide in 2026, averaging about $18,000 in help. DPA comes in three forms:

  • Grants — money you never repay (e.g., 3% of the price, up to a cap).
  • Forgivable second loans — erased after you make on-time payments for a set period.
  • Deferred / repayable loans — often 0% interest, repaid when you sell or refinance.

Examples in 2026 range from Bank of America's grant of up to 3% (max $10,000) and state programs offering $20,000–$25,000, to New York City's HomeFirst program of up to $100,000 in high-cost areas.

Do you qualify?

  • First-time status: usually means no homeownership in the last 3 years.
  • Income limits: often tied to your area's median income.
  • Education: many require a short homebuyer education course.

How to find programs near you

Start with your state housing finance agency (HFA) and HUD's state-by-state directory. Then ask lenders which programs they offer, and check your city, county, and employer.

Once you know your budget, estimate your payment with the mortgage calculator, figure out your price range in how much house you can afford, and see the low-down-payment details in how much down payment you need.

Frequently Asked Questions

What programs help first-time home buyers in 2026?

There's a record number — roughly 2,600 down payment assistance programs nationwide as of 2026, with an average benefit around $18,000. They include federal loan programs (FHA, VA, USDA), state housing finance agency loans and grants, and local city or employer programs. Assistance often comes as a grant or a forgivable second mortgage.

Who qualifies as a first-time home buyer?

Most programs define a first-time buyer as someone who hasn't owned a home in the past three years — so you may qualify even if you've owned before. Programs typically also have income limits (often tied to the area median income), a homebuyer education course requirement, and a minimum credit score.

What is down payment assistance?

Down payment assistance (DPA) is money — a grant or low/zero-interest loan — that helps cover your down payment and sometimes closing costs. Some DPA is a grant you never repay; some is a forgivable second mortgage that's erased after you make on-time payments for a set number of years; and some is a repayable loan.

How much down payment assistance can I get?

It varies widely by program and location. The average benefit is around $18,000, but amounts range from a few thousand dollars up to $100,000 in high-cost cities like New York. Bank and state programs commonly offer grants of a few percent of the purchase price or fixed amounts like $10,000–$25,000.

Do I still need a down payment with these programs?

Sometimes very little. FHA loans require just 3.5% down, conventional first-time-buyer loans start at 3%, and VA and USDA loans can be 0% down for those who qualify. Layered with down payment assistance, some buyers can get into a home with almost no out-of-pocket down payment.

How do I find first-time buyer programs near me?

Start with your state's housing finance agency (HFA) — every state has one — and HUD's directory of homebuying resources by state. Also ask lenders about programs they participate in, and check with your city, county, and even your employer, which sometimes offer homebuyer assistance.