Down Payment Assistance Programs For First Time Homebuyers

Congratulations on your decision to become a home owner!

Whether this is your first home or you have not purchased a home in the past 3 years – you may qualify for a first-time buyer program or a down-payment assistance program.

Requirements vary from state to state for down payment assistance but most commonly the assistance comes from government-subsidized programs and non-profit charitable organizations.

These programs are nationwide as well as specific state by state programs. Downpayment assistance for home buying can target low-income families or middle-income families.

The definition of a first-time buyer for a majority of the programs means you could not have purchased a home in the previous 3 years. It does not mean that you are barred if you have purchased homes in the past and are currently a homeowner.

The majority of downpayment assistance programs will require you to live in the home. Each program will have its own guidelines and not all borrowers will qualify.

Hud.gov Homeownership Programs by State

Alabama
Alaska
Arizona
Arkansas
California
Colorado
Connecticut
Delaware
District of Columbia
Florida
Georgia
Hawaii
Idaho
Illinois
Indiana
Iowa
Kansas
Kentucky
Louisiana
Maine
Maryland
Massachusetts
Michigan
Minnesota
Mississippi
Missouri
Montana
Nebraska
Nevada
New Hampshire
New Jersey
New Mexico
New York
North Carolina
North Dakota
Ohio
Oklahoma
Oregon
Pennsylvania
Puerto Rico/U.S. Virgin Islands
Rhode Island
South Carolina
South Dakota
Tennessee
Texas
Utah
Vermont
Virginia
Washington
West Virginia
Wisconsin
Wyoming

Nationwide Homeownership Programs

The Nehemiah Program
Nehemiah is the nation’s largest privately funded down payment Provide Gift funds up to 6% of the final contract sales towards your downpayment and/or closing costs.

  • Provide Gift funds for both first time and repeat homebuyers.
  • Provide Gift funds for both new construction and resale homes.
  • There is no repayment of gift money.
  • There are no income or asset limits.
  • No geographical restrictions

American Dream Downpayment Assistance Initiative
This program has been around since 2004. It provides grants to help home buyers with downpayment and closing costs. The program assists first-time homebuyers, low and moderate income individuals and families. Highlights of the program:

  • Grant recipients must be first time home buyers with annual incomes that do not exceed 80 percent of the area median income.
  • A maximum down-payment grant of $10,000 or 6% of the purchase price of the home, whichever is greater.
  • The grants help to defray the upfront costs of purchasing a first home and can also be used to offset the costs of rehabilitating the property.
  • Grants may be used to purchase one-to four family home units, condominium unit, cooperative unit or manufactured housing.

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