If you’re planning to buy a home but worried about the upfront costs, you may be asking: who qualifies for down payment assistance? The good news is that thousands of buyers across the U.S. benefit from these programs every year—including first-time buyers, veterans, teachers, and moderate-income households.
Qualifying isn’t as difficult as it may seem, and understanding the eligibility requirements is your first step toward accessing free or low-cost assistance for down payment and closing costs.
✅ General Requirements for DPA Eligibility
While criteria vary by state and program, most down payment assistance (DPA) programs share the following basic requirements:
- 👨👩👧👦 Be a first-time homebuyer (or not have owned a home in the last 3 years)
- 🏠 Use the home as your primary residence
- 📍 Buy within the geographic area covered by the program
- 📉 Meet income limits based on family size and location
- 💼 Apply through an approved lender
- 📘 Complete a homebuyer education course
📊 Income Limits – What You Need to Know
Most DPA programs set income limits tied to the Area Median Income (AMI) where the home is located. These limits may range from 80% to 120% of AMI.
For example:
- 🧑 Single person in Phoenix, AZ: limit may be ~$66,000
- 👨👩👧👦 Family of 4 in Dallas, TX: limit may be ~$98,000
Your lender will check the latest limits for your county when you apply.
🏡 Property Requirements
To qualify for DPA, the home must generally:
- ✅ Be a single-family home, condo, or townhouse
- 📍 Be located within the approved city/county/state
- 🔧 Meet basic habitability standards
- 💲 Fall within the program’s purchase price cap
🎓 Education Requirements
Most programs require buyers to take a HUD-approved homebuyer education course before closing. These courses cover topics like:
- 📈 Budgeting for homeownership
- 🏦 Understanding mortgage terms
- 🔧 Maintenance responsibilities
💼 Employment and Loan Type
While not always required, some programs give priority or additional options to:
- 👩🏫 Teachers, first responders, healthcare workers
- 🎖 Veterans and active military
- 👷 Workers in high-need sectors or rural areas
In terms of mortgage loan types, DPA can usually be combined with:
- FHA loans
- VA loans
- USDA loans
- Conventional loans (e.g., Fannie Mae HFA Preferred)
🔁 First-Time Buyer Rule Exceptions
Many DPA programs define “first-time homebuyer” as someone who hasn’t owned a home in the past 3 years. You may also qualify if:
- 🧓 You are a divorced or displaced homemaker
- 🏚 You’re purchasing in a targeted revitalization area
- 🎖 You are a qualified veteran
🔍 Buyer Story Example
Erica, a childcare worker in Ohio, qualified for $7,500 in assistance through a state program even though she wasn’t a first-time buyer—because her new home was in a designated target area. Her credit was average, but her income and education completion made her eligible.
📍 Where to Check Eligibility by State
- 💵 Texas Down Payment Assistance
- 🌴 Florida DPA Programs
- 🏘️ Ohio Homebuyer Assistance
- 🏔️ Colorado DPA Programs
📥 Want to Know If You Qualify?
The fastest way to know if you qualify is to talk to a lender approved by your state housing agency. They’ll help determine your eligibility based on income, credit, location, and loan type.
📍 Check Local Programs by State (via HUD)
