Down Payment Assistance Helps First-Time Buyers Overcome Affordability Hurdles

Programs provide an average of $18,000 in benefits, lowering loan-to-value ratios and improving borrower eligibility.

Published on Feb. 7, 2026

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Down payment assistance (DPA) programs are growing in number and offering more flexibility to help first-time homebuyers overcome the biggest obstacle to homeownership - coming up with a sizable down payment. These programs, which provide forgivable grants or repayable second mortgages, can bridge the gap between a buyer's savings and the amount needed to purchase a home. However, many buyers are unaware these programs exist or how to access them.

Why it matters

With home prices and mortgage rates rising significantly in recent years, the typical U.S. household can no longer afford the typical home. Down payment assistance programs are a practical tool to address this affordability crisis, especially for first-time and first-generation homebuyers who don't have the luxury of financial gifts from family.

The details

Down payment assistance programs can provide around $18,000 in benefits on average, reducing a buyer's loan-to-value ratio by 8.8 percentage points and strengthening their overall qualification profile. These programs come in the form of forgivable grants or repayable second mortgages, and have specific requirements around income limits, credit scores, first-time buyer status, property types, and loan types. While the programs are operated by state, county, and local housing agencies as well as nonprofits, the information gap makes it difficult for many buyers to find and access the assistance.

  • In the fourth quarter of 2025, there were 2,619 homebuyer assistance programs in the U.S., up 6% over the previous year.
  • As of December 2025, the national median existing-home sales price was $405,400, with the average 30-year fixed mortgage rate remaining above 6%.

The players

Down Payment Resource (DPR)

A company that tracks homebuyer assistance programs in the U.S. and found the average program provides around $18,000 in benefits.

Rob Chrane

Founder and CEO of Down Payment Resource, who stated that affordability will remain the defining challenge for homebuyers in 2026 and that down payment programs are one of the most practical tools lenders have to address it.

Edwin Santiago

Producing branch manager with CrossCountry Mortgage in Wayne, Pennsylvania, who explained that down payment assistance programs want to help buyers purchase a home they plan to live in and stay in.

Kara Ng

Senior economist with Zillow Home Loans, who noted that the typical U.S. household cannot afford the typical home in the U.S. right now, making down payment assistance a valuable resource for first-time and first-generation homebuyers.

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What they’re saying

“Affordability will remain the defining challenge for homebuyers in 2026, and down payment programs are one of the most practical tools lenders have to address it.”

— Rob Chrane, Founder and CEO, Down Payment Resource

“No organization wants to give you, say, 5% of the purchase price as a grant, and then you go sell the property in six months. They want to help you buy a home that you're planning on living in and staying in.”

— Edwin Santiago, Producing Branch Manager, CrossCountry Mortgage

“If you're the first in your family to buy a home, then that means you can't tap into the bank of mom and dad for down payment help.”

— Kara Ng, Senior Economist, Zillow Home Loans

What’s next

To help borrowers find down payment assistance information, Zillow now includes links to applicable DPA programs directly on property listings on its home search portal.

The takeaway

Down payment assistance programs are a valuable resource for first-time and first-generation homebuyers struggling with affordability in the current housing market. By bridging the gap between savings and the required down payment, these programs can make homeownership more accessible, though many buyers remain unaware of their existence and how to access them.