Down Payment Assistance Programs

What is a down payment assistance program?

Instead of spending years saving for a down payment, you could get into your first home with little or no cash with a down payment assistance program.

Down payment assistance programs are designed to make homes more affordable for homebuyers. Programs come in several forms for eligible buyers: cash grants or secondary loans.

How do down payment assistance programs work?

Down payment assistance programs work to make homeownership more affordable and are usually for first-time homebuyers.

Most DPA programs are administered by state and local governments, private entities, charitable organizations, and even lenders like us. They are often in the form of forgivable loans and grants.

Qualifying for down payment assistance

Down payment assistance programs are often income-restricted and available to buyers in specific cities, communities, or neighborhoods only.

Other requirements may include:

  • First-time homebuyers only
  • Length of occupancy (such as 5 years for full loan forgiveness)
  • Homebuyer education

What makes you a first-time homebuyer?

You’ve never owned a home before or haven’t owned a home in the past three years, and the home is your primary residence.

We know saving for a down payment is a challenge for many homebuyers. To help relieve you of the financial stress, we offer a variety of down payment assistance (DPA) programs for conventional and FHA loans.

For most of these programs, one buyer must be a first-time homebuyer, and homebuyer education and other requirements may apply.

Max DPA Grant (no repayment required) Income restrictions Geographic eligibility restrictions First-time homebuyer requirement
CCM Smart Start 2% up to $5,250** Yes Yes Yes* Yes
Freddie Mac BorrowSmartSM Standard Up to $1,250 Yes Yes Available in all states No
The National 4% No Yes Yes§ No
Chenoa Fund 3.5% or 5% No No Available in all states except NY No
Essex 3.5% No No Available in all states except NY & WA No
What is down payment assistance?

Down payment assistance (DPA) is a homebuying program that gives cash grants and secondary loans to eligible buyers.

The vast majority of down payment assistance is offered to first-time homebuyers. Many cities and counties have other housing programs available, but down payment assistance is typically reserved for those who have not owned a home in the last three years.

There is no universal application. Most programs are administered through participating lenders like CrossCountry Mortgage. Your local CCM loan officer will know and understand the ins and outs of the different programs and help you complete the necessary applications.

Here are some key things to consider.

Pros

  • Buy a home faster instead of savings for years
  • Save money upfront
  • Afford more house
  • Get more favorable loan terms

Cons

  • May cost you more in the long run if it’s an interest-bearing loan
  • Not everyone qualifies
  • For certain types of assistance to be fully forgiven, there are requirements to be met

In many cases, yes, you can use multiple sources of down payment assistance, provided you qualify. Check with your lender to ensure you’re obtaining a mortgage through a program that allows for more than one source of assistance.

This depends on the program. Terms and funding amounts are determined primarily by the entity offering the DPA — find out what’s offered in your area, and what you need to do to apply, by contacting your loan officer.

Not everyone qualifies for down payment assistance programs. If you owned a home in the last three years, your income is too high, or you plan to rent out the property or use it as an investment, you might not qualify for many programs.

The time it takes varies. It’s best to start your research as early in the homebuying process as possible to give yourself as much runway as you can. Your loan officer will work directly with the assistance program to secure the necessary funds.

Yes. You can apply for down payment assistance with certain conventional mortgages.

Down payment assistance can help with closing costs, which are the fees and charges you pay when you finalize your mortgage.

Take the first step toward achieving your financial goals—apply now to get started!

Apply Now

*CrossCountry Mortgage LLC will contribute 2% down (up to $5,250) towards a 3% down payment. Home buyer is responsible for the remaining 1% of the down payment. This offer is available for the purchase of a primary residence only. Offer valid for home buyers when qualifying income is less than or equal to 80% area median income based on county where property is located. At least one occupying borrower must be a first-time homebuyer. Rate must be locked on or after 6/20/2023. Not available with any other discounts or promotions. Not available in the following MSAs: Miami, FL, Atlanta, GA, Chicago, IL, Detroit, MI, St. Louis, MO, Philadelphia, PA, Memphis, TN, El Paso, TX, Houston, TX, McAllen, TX. Offer cannot be retroactively applied to previously closed loans or loans that have a locked rate. This is not a commitment to lend. CrossCountry Mortgage, LLC has the right to accept, decline, or limit the use of any discount or offer. Acceptance of this offer constitutes the acceptance of these terms and conditions, which are subject to change without notice. Additional conditions may apply.

**Borrowers below 50% AMI qualify up to $5,250. Borrowers 51-80% AMI qualify up to $4,000.

***Borrowers at or below 100% AMI qualify up to $6,000. Borrowers between 100-140% AMI qualify up to $3,000.

† Available in select MSAs. For a full list of eligible MSAs, visit crosscountrymortgage.com/community-promise.

‡ Available in the following MSAs: Miami, FL, Atlanta, GA, Chicago, IL, Detroit, MI, St. Louis, MO, Philadelphia, PA, Memphis, TN, El Paso, TX, Houston, TX, McAllen, TX.

§ Not available in: CA, DE, FL, IN, IA, LA, MD, MT, NE, NV, NY, OH, RI, SC, TX, UT, VT, WA, WV.