What are down payment programs/grants?
A down payment grant or program typically refers to assistance provided by an organization such as a government or non-profit agency, to a homebuyer to assist them with the down payment for a home purchase. The funds may be provided as an outright grant or may require repayment, such as when the home is sold.
Down Payment/State & Local Programs
Many states, local governments, and nonprofits offer programs to make homeownership more affordable. Many of these programs focus on low- and moderate-income families buying their first home, though some may be available to families who have previously owned a home. Other programs target teachers, firefighters, and other public service employees, or people interested in purchasing a home in a particular neighborhood.
Many programs offer down payment assistance that can be used with a regular FHA or conventional loan. Some programs lend money directly through subsidized loans.
But there are no hard-and-fast rules—a lot depends on the current market. If you’re not sure, ask lenders for quotes for both options and compare total costs to see which offers the best overall deal.