What is down payment assistance?
Mortgage down payment assistance is money from a housing agency, nonprofit or lender that helps cover your down payment or closing costs. Down payment assistance grants typically don’t need to be repaid. Other programs offer a second loan that may be forgiven over time, deferred until you sell or refinance, or repaid monthly. Each program sets its own rules for income, home price and location.
Who is down payment assistance for?
Saving a down payment is what's holding you back
You earn enough to handle a mortgage payment, but saving for the down payment could take years. Assistance can cover part of that upfront cash, so you may not have to wait as long.
You're buying your first home
Many state and local programs focus on down payment assistance for first-time homebuyers, including down payment grants. Your loan officer can check which ones you may qualify for in the area where you want to buy.
You're not sure if you earn too much
Programs are often built for low- to moderate-income households, with limits that change by area. Your loan officer can check your household income against the local limits.
Other first-home paths, and where they fit
Down payment assistance is one way in. If you’re buying your first home, see how Fairway’s first-time homebuyer options fit.
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Down payment assistance benefits and how to qualify
See what assistance can do for you, and what programs usually ask, before you talk numbers.
Buy sooner
Assistance covers part of the upfront cash, so you may not need years of saving before you can buy.
Keep some savings in reserve
Using assistance for the down payment can leave more of your own savings for moving in, furnishing or a rainy day.
Someone checks the programs for you
With hundreds of programs, it's hard to know where to start. Your local Fairway loan officer checks which ones fit where you're buying.
Income within local limits
Many programs are built for low- to moderate-income households, with limits that change by area and household size.
A home you'll live in
Most programs are for your primary residence, and some set a limit on the home's price for the area.
A few program steps
Some programs are only for first-time buyers, and some ask you to take a homebuyer education class first. Your loan officer will tell you what each one needs.
Compare side by side
Down payment assistance grants vs second loans
Both help with the upfront cash. The difference is whether, and when, you pay the money back.
Grants
Money toward your down payment that you typically keep.
Repayment
- Typically none
Conditions
- Some, such as living in the home for a set time
Best for
- Covering part of the down payment outright
Second loans
A second loan that may be forgiven, deferred or repaid over time.
Repayment
- Forgiven over time, deferred, or repaid monthly
Conditions
- Set by each program
Best for
- Covering a larger share of what you need
Tools & Calculators
Use our mortgage calculators to estimate payments, compare options, and make a more informed decision before your next move.
FAQs about loans for Down Payment Assistance
Whether you’re exploring your options, already have a loan with Fairway, or need help finding the right place to go, connect with a loan officer to point you in the right direction.
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It depends on the type. Grants typically don’t. A DPA loan, the second loan some programs offer, may be forgiven over time, repaid when you sell or refinance, or repaid monthly. Your loan officer will explain each program’s terms.
Each program sets its own rules, usually for household income, the home's price and location, and sometimes first-time buyer status. Your loan officer checks them for you.
Sometimes. Some programs are open to repeat buyers, and many count you as first-time again if you haven't owned a home in the past three years.
Most programs work through a participating lender, alongside your mortgage. Your local Fairway loan officer checks which programs fit where you’re buying, then helps you apply for the assistance and your home loan together.
It depends on the program and where you're buying. Some cover part of the down payment, and some can cover most or all of it. Your loan officer can tell you what you may qualify for.
Programs are run by states, counties, cities and nonprofits, so what’s available depends on where you buy. Your local Fairway loan officer checks the programs for your area. You can also browse programs by state in our down payment assistance guide.
Assistance comes as a grant or a second loan. Grants typically don’t need to be repaid. Second loans may be forgiven over time, deferred until you sell or refinance, or repaid monthly. Each program sets its own terms.
Ready to find down payment assistance?
It starts with a conversation. Tell us where you want to buy. Your local Fairway loan officer will reach out, check which programs you may qualify for and help you apply.
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