FHA Down Payment Assistance
The down payment is the part they never got to. It can be financed.
Most people who could carry a mortgage payment never get to make one, because the cash to close arrives years before they do. Down payment assistance is a second loan that sits behind an FHA first and pays the part you do not have — and on the programs here, it can cover the full minimum investment, with versions that are forgiven after a run of on-time payments. Combined financing reaches the full price, and on some versions a little past it toward closing costs. None of that is a giveaway, and this page says exactly what each piece costs.
Who this is built for
Renters who can pay but cannot save fast enough
The payment is not the problem; the lump sum is. Assistance sized to the minimum investment removes the lump sum and leaves the payment — which you were already making to a landlord.
Buyers whose savings keep getting spent on rent increases
Every year the down payment target moves and the rent moves with it. A second loan that fills the gap ends that race on the current year rather than a future one.
Households with income but no income limit to worry about
The lender programs here carry no income limits at all. That distinguishes them from most public assistance, where earning too much closes the door.
Buyers at credit scores the banks stopped calling back
These programs start at 600 with an automated approval. That is FHA’s forgiving floor, with assistance layered on top of it.
Send a credit score, a rough price range and the county. Whether assistance fits — and whether forgivable or repayable is the better version for you — is usually clear in one conversation.
Talk it through“Forgivable” is a real word, and it is not “free”
The forgivable second is wiped out after a run of on-time payments — but until then it is a recorded lien, and its cost is carried in the first mortgage’s terms.
Three facts that decide whether assistance is the right tool for a given file:
The honest comparison is against waiting: another year of rent at a rising number against the priced cost of a forgivable second. For a household that will stay put, the assistance usually wins that arithmetic. For one likely to move within the forgiveness period, it often does not — and that is worth knowing before, not after.
| Forgivable is priced | In the first mortgage | The version with no second payment costs something, and it shows up in the first mortgage’s terms. It is frequently still the right choice; it is never free. |
| It is a recorded lien until it is not | Sell or refinance early and it is due | Before the forgiveness period runs, the second is repaid from proceeds like any other lien. Plan the holding period honestly. |
| No income limits on the lender programs | Unlike most public assistance | This is the fact that makes these usable for households that earn too much for county programs and still cannot produce the lump sum. |
Program parameters reflect the lenders’ current published materials and change without notice. Pricing of forgivable options and second-mortgage terms are quoted per file. Not all applicants will qualify.
How it actually works
Two loans close at once, and the second one is the one people have never heard of.
An FHA first mortgage does the heavy lifting
The primary loan finances up to 96.5% of the price under ordinary FHA rules — the same credit floors, the same appraisal, the same mortgage insurance.
A second loan pays the down payment
The assistance is a recorded second mortgage, sized to the FHA minimum investment or a little larger. Combined, the two reach the full price — or slightly past it, with the excess going toward closing costs.
You choose forgivable or repayable
The forgivable version carries no monthly payment and is wiped out after a set period of consecutive on-time payments on your first mortgage. The repayable version amortizes alongside the first. The difference is priced, and it shows up in the first mortgage’s terms.
Then it behaves like any FHA loan
Primary residence, standard FHA underwriting, seller-paid buydowns permitted where the program allows. The assistance does not change what kind of borrower you need to be — it changes what you need in the bank.
The programs, side by side
Four tables: how the assistance layers, two FHA lender programs with published grids, and the conventional version of the same idea.
The structure is the same across the FHA programs on this page. Only the lender-specific conditions change:
| The layer | What it does | What it means for you |
|---|---|---|
| The FHA first mortgage | Finances up to 96.5% of the price | Ordinary FHA terms — credit floor, appraisal, mortgage insurance |
| The assistance second — standard | Sized to the FHA minimum investment | Combined financing reaches 100% of the price |
| The assistance second — larger | Sized above the minimum investment | Combined financing reaches 101.5% — the excess goes toward closing costs |
| Forgivable version | No monthly payment; extinguished after a set run of on-time first-mortgage payments | A recorded lien until it is forgiven; the cost is priced into the first |
| Repayable version | Amortizes alongside the first mortgage | A second monthly payment, at terms quoted per file |
The number that matters is combined financing, and it is honest to say what it does and does not do. Reaching 100% means the down payment is covered; reaching 101.5% means a portion of closing costs is covered too — not all of them, and the rest is still due at closing or negotiated from the seller. Three lenders on this shelf run FHA versions of this structure; two publish grids detailed enough to show here, and a third runs its own first-plus-second combination to 100% combined. If you work in one of the occupations Florida’s Hometown Heroes program names, that state assistance can also sit behind an FHA first — it has its own page.
Structural description of FHA down payment assistance programs offered through third-party lenders. Combined financing figures are maximum combined loan-to-value and are subject to FHA limits, appraisal and automated underwriting. Forgiveness periods, repayment terms and the pricing of forgivable versus repayable options are set per program and quoted per file. Assistance is a recorded second mortgage until satisfied or forgiven. Not all applicants will qualify.
One lender runs two versions of this program. Both are FHA purchase only, both offer forgivable and repayable options, and the differences are in the edges:
| The condition | Version one | Version two |
|---|---|---|
| Combined financing | 101.5% with the larger second — 100% with the standard one | Same |
| Credit floor | 600 with an automated approval | 600 with an automated approval, or manual underwriting at 600 following FHA guidelines |
| Manual underwriting | Not permitted | Permitted at 600 |
| Income limits | None | None |
| Homeowner education | Required for scores from 600 to 639 | Required for at least one borrower |
| Qualifying ratios | No maximum with an automated approval | No maximum with an automated approval; 45% on a manual file |
| Property | Single-family, two-unit, condo, manufactured | Same |
| Where | Every state except New York | Every state except New York and Washington |
The absence of income limits is the fact worth pausing on. Almost every public assistance program caps who can earn what; these do not, which makes them usable for a household that out-earns the county programs but still lacks the lump sum. Non-occupant co-borrowers are allowed per FHA rules on both versions, seller- or agent-paid temporary buydowns are available, and the property list includes manufactured homes — which have their own page and their own rules.
Representative of one lender’s down payment assistance program comparison dated 2026. FHA purchase transactions, primary residence only. Combined financing figures are maximum combined loan-to-value. Forgivable and repayable versions are priced differently; second-mortgage rate, term and forgiveness period are set by the program and quoted per file. Homeowner education requirements and manual-underwriting availability differ by version as shown. Not all applicants will qualify.
A second lender’s FHA assistance program, from a dated matrix rather than a flyer, with a slightly higher credit floor and a wider reach on the manual side:
| The condition | Where it lands | Worth knowing |
|---|---|---|
| Combined financing | 101.5% on the larger version, 100% on the standard | The larger version carries its own program name |
| Credit floor | 620 with an automated approval | 660 on a manual underwrite |
| Borrower’s own funds | The assistance can cover the full minimum investment | No contribution from your own savings is required by the program |
| Forgiveness | A deferred second with a forgivable option | Forgiven after the program’s set period; otherwise repayable |
| Where | Not available in New York | Georgia temporarily ineligible at the date of the matrix |
The practical difference from the first lender is the credit floor — 620 rather than 600 — traded for a manual-underwriting path at 660 that the first lender’s primary version does not offer. Which one fits is decided by the score and by whether the file needs a human underwriter, and both questions are answered in minutes.
Representative of one lender’s FHA down payment assistance matrix effective 05/11/2026. FHA purchase transactions, primary residence. Combined financing figures are maximum combined loan-to-value. The deferred second carries a forgivable option; forgiveness period, rate and repayment terms are set by the program and quoted per file. State availability as of the matrix date and subject to change. Figures do not combine with the other tabs on this page. Not all applicants will qualify.
The same idea exists on the conventional side, where an approved community second sits behind the first, from a 620 credit score. The combined ceiling is higher and the first mortgage steps down by unit count:
| The property | Combined with a community second | First mortgage |
|---|---|---|
| One unit, primary residence | 105% combined | First mortgage to 95% |
| Two units | 105% combined | First mortgage to 85% |
| Three to four units | 105% combined | First mortgage to 75% |
Combined financing to 105% is the highest figure on this page, and it comes with the conventional trade: a 620 credit floor and conventional mortgage insurance rules rather than FHA’s. The community second has to be an approved source — a housing agency, an employer program, a nonprofit — rather than any second lender, which is a real constraint. On a file that qualifies both ways, the conventional and FHA comparison is worth ten minutes before choosing which first mortgage the assistance sits behind.
Representative of one lender’s conventional affordable-lending matrix. Purchase and rate-and-term, primary residence, from a 620 credit score. Combined loan-to-value to 105% requires an eligible Community Seconds source as defined by the agency. First-mortgage maximums by unit count as shown. Figures do not combine with the FHA tables on this page. Not all applicants will qualify.
The boundaries that decide these files
What you actually hand over
The ordinary FHA file
Income, credit and assets exactly as FHA requires. The assistance does not add income documentation — it removes a savings requirement.
Homeowner education, where required
One lender requires it below a 640 score; another requires it of at least one borrower. It is a course, it is short, and it is scheduled early.
The property’s eligibility
Single-family, two-unit, condo or manufactured — each with its own program conditions, especially manufactured homes.
A holding-period conversation
Not a document, but the most important input: how long you expect to stay decides whether forgivable or repayable is the better version.
Where it wins — and the honest trade-offs
Told straight, because this page is useless otherwise.
Combined financing to the full price means the down payment is the second loan’s job, not yours. For most renters that is the whole obstacle.
Earn what you earn. These programs do not care, which sets them apart from nearly every public program in the category.
From 600 with an automated approval. The assistance layers on top of FHA’s forgiveness rather than tightening it.
For the file that qualifies conventionally, the community-second route reaches 105% combined — the highest figure on this page.
Its cost lives in the first mortgage’s terms. On a long hold it is usually worth it; on a short one it often is not, and that comparison should be done on paper before choosing.
A sale or refinance before the forgiveness period ends repays the assistance from proceeds. It is not a penalty — it is a loan doing what loans do — but it surprises people who thought “forgivable” meant “gone”.
Even at 101.5% combined, a portion of closing costs remains. The cash-to-close conversation is smaller with assistance, not zero.
The first is an FHA loan with FHA’s insurance structure. Assistance changes the down payment, not the insurance.
Start with the score and the county
A credit score, a rough price range and the county tell me whether assistance fits, which of the programs is open to you, and whether forgivable or repayable is the better version for how long you plan to stay. The answer comes back in writing, with the cost of the forgivable option stated rather than hidden.
Questions people actually ask
Open the full Q&A — forgivable versus repayable, what happens if you move, and the closing costs nobody mentions ▾
+Can the assistance really cover the whole down payment?
Yes — on the programs here it is sized to the FHA minimum investment, so combined financing reaches the full price and the down payment is the second loan’s job. The larger version reaches a little past the price toward closing costs. What remains is a portion of closing costs, which is negotiated or brought to the table.
+Forgivable or repayable — which is better?
It depends almost entirely on how long you will stay. The forgivable version has no second payment and is wiped out after a run of on-time payments, but its cost is priced into the first mortgage. The repayable version adds a second payment and prices the first more favorably. A long hold usually favors forgivable; a likely move within a few years usually does not.
+Is there an income limit?
Not on the lender programs on this page — none at all. That is unusual in this category, where public programs almost always cap income, and it is what makes these usable for households that earn too much for county assistance.
+What happens if I sell or refinance early?
The second is a recorded lien until it is forgiven or repaid, so a sale or refinance inside the forgiveness period settles it from the proceeds. It is not a penalty, but it does mean the assistance was a loan rather than a gift for that particular file.
+Can I use this on a conventional loan instead of FHA?
A conventional version exists — the fourth tab — using an approved community second behind a conventional first, to 105% combined. The second has to come from an approved provider such as a housing agency or employer program, which narrows who can use it, and the credit floor is 620.
+Does this work on a manufactured home?
On the first lender’s programs, yes — manufactured is on the eligible property list. Those homes carry their own rules about age, width and title status, all on the manufactured housing page.
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Loan programs, explained honestly
The programs described are down payment assistance programs offered through third-party lenders in conjunction with an FHA or conventional first mortgage, are subject to lender approval, agency requirements and underwriting approval, and change without notice. Assistance is provided as a recorded second mortgage; forgivable versions are forgiven only upon satisfaction of the program’s conditions, including a set period of consecutive on-time payments on the first mortgage and continued owner occupancy, and are otherwise due and payable, including upon sale or refinance. The cost of a forgivable option is reflected in the terms of the first mortgage. Combined financing figures are maximum combined loan-to-value and are subject to appraisal, FHA or agency limits and automated underwriting findings; second-mortgage rate, term, forgiveness period and repayment terms are set per program and disclosed per file. FHA loans carry FHA mortgage insurance. Conventional community seconds require an approved provider as defined by the agency. State availability varies by program. Figures from different lenders do not combine. Mortgages by Guido and MTGCASA are not affiliated with or endorsed by HUD, FHA, Fannie Mae or Freddie Mac. Not all applicants will qualify. This is not a commitment to lend. Equal Housing Opportunity.