How Does Down Payment Assistance Work?

There are different types of down payment assistance, such as grants, loans and other programs.

Down payment assistance is for first-time home buyers who need money for their down payment. There are usually specific criteria for determining eligibility as a first-time homebuyer. If you have not owned a home in any form within the past three years, most state, federal, local and non-profit programs will consider you a first-time homebuyer.

Down payment assistance is usually offered by various organizations, such as the U.S. Department of Housing and Urban Development (HUD), your state or local housing authority, or a nonprofit organization.