Buying a home has become more challenging with today’s mortgage rates and rising home prices. This difficulty might have you exploring grants and assistance programs to see if you qualify for any help. However, many homebuyers are unsure where to begin.

A recent study by the Bank of America Institute revealed that 53% of prospective buyers feel they need more information about homebuying grant programs. Here’s some information to help bridge that knowledge gap.

What Is Down Payment Assistance?

Down payment assistance (DPA) programs offer loans and grants to cover part or all of a homebuyer’s down payment and closing costs. There are over 2,000 DPA programs nationwide, each varying by location. Many buyers could receive thousands of dollars in assistance if they qualify.

Additionally, you might not need to save as much for your down payment as you think. Contrary to popular belief, you typically don’t have to put down 20% unless specified by your loan type or lender. These programs can make your down payment more manageable.

First-Time and Repeat Buyers Are Often Eligible

These programs are not limited to first-time homebuyers. In fact, 39% of all homeownership programs are available to repeat homebuyers who have owned a home within the last three years. Whether it’s your first home or your fifth, there could be assistance available for you.

Additional Down Payment Resources

Here are some programs helping many buyers achieve homeownership:

• Teacher Next Door: Assists teachers, first responders, health providers, government employees, active-duty military personnel, and veterans in reaching their down payment goals.

• Fannie Mae: Provides down payment assistance to eligible first-time homebuyers in majority-Latino communities.

• Freddie Mac: Offers options for homebuyers with modest credit scores and limited funds for a down payment.

• 3By30 Program: Aims to add 3 million new Black homeowners by 2030 with actionable strategies.

• Native American Programs: Down Payment Resource highlights 42 programs across 14 states to support Native American homebuyers with down payments and other costs.

For more information on these and other programs, contact a trusted real estate professional. They can provide details on available programs, including those tailored to specific professions or communities, and help you explore federal, state, and local options.

Bottom Line

Affordability remains a challenge, so it’s essential to take advantage of all available resources when buying a home. Connecting with a team of real estate professionals, including a trusted lender and local agent, is the best way to discover and utilize these resources.