Best Down Payment Assistance Programs for First-Time Homebuyers

One of the biggest hurdles for many first-time homebuyers is getting that down payment together. We understand, especially if you’re trying to scrape together 20% of a home’s purchase price (insert large gulp here).

There are two things many first-time homebuyers don’t realize, though:

• You generally don’t have to put a full 20% down on a home.
• Tons of down payment assistance programs are ready, willing, and able to help you out.

How Do Down Payment Assistance Programs Work?

Before exploring specific programs, it’s important to understand how down payment assistance works.

Down payment assistance (DPA) programs are designed to help qualified homebuyers reduce the upfront costs of purchasing a home. Depending on the program, assistance may come in the form of grants, forgivable loans, repayable second mortgages, lender-sponsored assistance, or low-down-payment mortgage options.

Some programs help cover your down payment, while others can also help with eligible closing costs. Because every program has different eligibility requirements and repayment terms, working with an experienced Loan Advisor can help you identify the solutions that best fit your financial goals.

What Is Down Payment Assistance (DPA)?

Down payment assistance (DPA) refers to programs designed to help qualified homebuyers reduce the upfront costs of purchasing a home. Depending on the program, assistance may come in the form of grants, forgivable loans, repayable second mortgages, lender-sponsored assistance, or low-down-payment mortgage options.

Some programs help cover your down payment, while others can also be used toward eligible closing costs. Because every program works differently, it’s important to understand how each option fits your financial goals and homeownership plans.

One of the biggest misconceptions about down payment assistance is that there is only one type of program. In reality, there are hundreds of local, state, national, and lender-sponsored programs available throughout the country. Some are based on household income, while others consider factors such as your location, loan type, occupation, or whether you’re purchasing your first home.

The good news? You don't have to research every program on your own. Working with an experienced Loan Advisor can help you understand which options may be available based on your goals and qualifications.

Explore Down Payment Assistance Programs Available Through APM

American Pacific Mortgage offers access to a wide variety of down payment assistance solutions, from proprietary programs developed by APM to nationally recognized assistance programs and affordable conventional financing options.

Whether you’re looking for help with your down payment, closing costs, or both, your local APM Loan Advisor can compare available programs and help identify the solution that best fits your financial situation and homeownership goals.

Below are some of the most popular down payment assistance programs available through APM.

Pathway DPA

Best for: Qualified buyers looking for an APM-exclusive down payment assistance solution.

Highlights:

• Available with APM’s 30-year fixed FHA loan
• Offers 3.5% or 5% down payment assistance
• Can be applied toward your required down payment and eligible closing costs
• Structured as a 10-year repayable second mortgage
• Available exclusively through American Pacific Mortgage

Pathway DPA gives buyers another option for reducing upfront homebuying costs while benefiting from APM’s personalized guidance.

1% Home

Best for: Qualified buyers who need additional help covering their down payment.

Highlights:

• Provides lender-sponsored down payment assistance of up to 2% of the home’s purchase price (up to $4,500)
• Can often be combined with eligible down payment assistance programs
• Helps reduce the amount of cash needed at closing
• Loan limits apply

For buyers with limited savings, 1% Home can provide another path toward homeownership by helping lower upfront costs while maximizing available assistance opportunities.

Chenoa Fund

Best for: Qualified homebuyers seeking flexible national down payment assistance options.

Highlights:

• Available to eligible low- and moderate-income borrowers
• May provide forgivable or repayable down payment assistance
• Assistance may also be used toward eligible closing costs
• Available in many markets nationwide

The Chenoa Fund is one of the country’s best-known down payment assistance programs and can help qualified buyers bridge the gap between their available savings and the funds needed to purchase a home.

Within Reach for FHA loans

Best for: Qualified FHA borrowers looking to reduce upfront homebuying expenses.

Highlights:

• Designed for eligible FHA borrowers
• Provides low-interest down payment assistance
• May also help cover eligible closing costs
• Can reduce the amount of cash needed at closing

Within Reach helps qualified buyers access affordable financing by making the initial costs of purchasing a home more manageable.

Lakeview National

Best for: Qualified buyers looking for nationwide down payment assistance.

Highlights:

• Available in many states nationwide
• Offers assistance for eligible down payment and closing costs
• Compatible with qualifying mortgage programs
• Designed to expand access to homeownership

Lakeview National provides another option for buyers who qualify for down payment assistance and want additional flexibility when financing their home purchase.

Fannie Mae HomeReady®

Best for: Eligible buyers looking for an affordable conventional mortgage with a low down payment.

Highlights:

• Conventional financing with as little as 3% down for qualified borrowers
• Flexible income and underwriting guidelines
• May be paired with eligible down payment assistance programs
• Designed to expand access to affordable homeownership

HomeReady® combines low down payment requirements with flexible qualifying guidelines, making it a popular option for many first-time homebuyers.

Freddie Mac Home Possible®

Best for: Qualified buyers seeking a flexible conventional mortgage option with a low down payment.

Highlights

• Conventional financing available with as little as 3% down for eligible borrowers
• Flexible underwriting requirements
• May be combined with eligible down payment assistance programs
• Designed to support affordable homeownership

Home Possible® offers another affordable conventional financing solution for qualified buyers who may benefit from flexible qualifying requirements and low upfront costs.

Which Down Payment Assistance Program Is Right for You?

Every homebuyer’s financial situation is different, which means there isn’t a one-size-fits-all solution.

You may want to explore:

• Pathway DPA if you’re looking for an APM-exclusive program paired with FHA financing.
• 1% Home if you’re looking to supplement your down payment with lender-sponsored assistance.
• Chenoa Fund if you qualify for national down payment assistance options.
• Within Reach if you’re financing with an FHA loan and need additional help covering upfront costs.
• Lakeview National if you’re purchasing with eligible conventional financing.
• HomeReady® or Home Possible® if you’re looking for affordable conventional mortgage options with low down payment requirements.

An experienced APM Loan Advisor can help compare available programs and recommend solutions based on your financial goals, loan program, and property location.

Can You Combine Down Payment Assistance Programs?

Many homebuyers wonder whether they can combine multiple forms of down payment assistance.

In some cases, the answer is yes.

Certain lender-sponsored programs may be combined with eligible down payment assistance programs, while others cannot. Program guidelines vary depending on the loan type and assistance provider.

For example, APM’s 1% Home program may be combined with many eligible down payment assistance programs, helping qualified buyers further reduce the cash needed at closing. Your Loan Advisor can help determine which combinations may be available based on your financing scenario.

What Documents Will You Need?

Although documentation requirements vary by program, many down payment assistance applications require:

• Government-issued identification
• Income documentation
• Asset statements
• Purchase contract
• Mortgage application
• Homebuyer education certificate (when required)
• Additional documentation requested by the assistance provider

Preparing these documents early can help streamline both your mortgage approval and your down payment assistance application.

Your Loan Advisor Can Help Compare Your Options

With so many down payment assistance programs available, it’s understandable if you’re unsure where to begin.

The good news is that you don’t have to navigate the options alone.

At American Pacific Mortgage, our Loan Advisors take the time to understand your goals, compare available programs, explain eligibility requirements, and help identify solutions that fit your financial situation. Whether you’re exploring an APM-exclusive program like Pathway DPA or 1% Home, or national options such as Chenoa Fund, Within Reach, Lakeview National, HomeReady®, or Home Possible®, we’re here to help you make an informed decision.

Connect with a local APM Loan Advisor today to explore the down payment assistance programs that may be available to you.

Frequently Asked Questions About Down Payment Assistance Programs

What are the best down payment assistance programs for first-time homebuyers?

The best program depends on your financial situation, loan type, and where you’re purchasing a home. American Pacific Mortgage offers access to a variety of options, including our in-house Pathway DPA, 1% Home, Chenoa Fund, Within Reach, Lakeview National, HomeReady®, and Home Possible®.

How do down payment assistance programs work?

Down payment assistance programs help qualified homebuyers reduce upfront costs through grants, lender-sponsored assistance, or second mortgage programs that can be used toward the down payment, closing costs, or both.

How do I apply for down payment assistance?

The process typically begins with speaking to an APM Loan Advisor. After reviewing your financial situation, they’ll help identify available programs, complete your mortgage pre-approval, and guide you through any program-specific application requirements.

Are there income limits for down payment assistance?

Some programs include household income limits, while others follow the requirements of the underlying mortgage program. Eligibility varies by program.

What documents are needed to apply?

Most programs require identification, income documentation, asset statements, your mortgage application, and other supporting documentation depending on the assistance provider.