Billions in down payment assistance and first-time buyer programs go unused every year because people don't know they exist. Here's what's available in 2026.
Federal Programs
- FHA loans: 3.5% down with 580+ credit score. Allows gift funds for entire down payment.
- USDA loans: 0% down in eligible rural/suburban areas (more areas qualify than you think).
- VA loans: 0% down for veterans and active military. No PMI.
- Good Neighbor Next Door (HUD): 50% off list price for teachers, firefighters, EMTs, and law enforcement in revitalization areas.
State Programs
Every state offers down payment assistance — typically $5,000-$25,000 in grants or forgivable loans. Check your state's housing finance agency website. Many have income limits of $80,000-$120,000.
New for 2026
The proposed first-generation homebuyer tax credit offers $25,000 toward a down payment for buyers whose parents never owned a home. If passed, it could help 850,000 families annually.
