Buying a house in the U.S. has become very difficult, mostly because of the down payment which is the initial payment before buying a house. In this article you will find that there are special programs that help people cover that cost, even with money that hasn’t to be given back.
To picture how hard the situation is, we are going to tell you the story of a couple in Texas who could buy the house they wanted thanks to these programs. So, if you want to do the same, we are here to tell you how you can have the house of your dreams.
Buying a house
House prices keep growing, but this is not the only issue. A study showed that 61% of the people who want to buy a house see the initial payment and the closing costs as a very big issue for them.
Many people are fighting hard to find a house that is the right size, location, and price. However, even when the perfect choice is found, the down payment makes it impossible to continue with the purchase.
According to Rocket Mortgage, the down payment is normally between 3% and 20% of the total price of the house. The thing is that these amounts have increased: in December of 2024, it was $63,188, 7.5% higher than the previous year. Then, Redfin, an online real estate company, said that this increase is mostly happening because home prices are rising. When home prices go up, the amount that people need to pay upfront also goes up.
Programs that help with the down payment
Even though the costs are high, there are programs (which are run by states, counties, and cities) that can help people buy a house. These programs are called Down Payment Assistance Programs (DPA) and they offer two types of aids:
- Grants: which are free money that you do not have to pay back.
- Interest-free loans: they help people pay for their down payments and closing costs.
For example, the state of Texas has about 46 different DPA programs. One Texas couple received help from one of these programs and were able to buy a four-bedroom home that they thought they could never afford. Thanks to the Texas State Affordable Housing Corporation (TSAHC), the couple received a $7,000 grant. This money was automatically used toward their down payment and closing costs, and the best part is that they do not have to pay it back. The woman, Erika Loza, said the experience felt amazing and almost unbelievable.
Careful because not everybody qualifies for these programs, it depends on: their income, where the home is located, and whether they are a first-time homebuyer. Because these programs vary so much, what a person receives will depend on their specific situation.
Examples of aid programs
In the U.S. there are more than 2,000 programs that help people with the down payment and closing costs. Let’s have a look at some of them:
- Texas State Affordable Housing Corporation
- NYC HomeFirst Down Payment Assistance Program
- Orange County, Florida Homebuyer Program
- Indiana’s Hoosier Homes Homebuyer Assistance Program
- California Dream For All Shared Appreciation Loan
Down Payment Resources
This is a webpage that helps people find aid programs, here you will find information about more than 2,000 programs in the U.S. You should know that many programs are not limited to first-time buyers. In fact, about 39% of programs accept people who owned a home within the last three years.
People can fill out a form on the website. This form uses their information to show:
- Which programs they may qualify for.
- How many programs fit their situation.
- How much help they may be able to receive.
To sum up
In a market where costs keep rising, knowing there are over 2,000 programs designed to ease the burden of the down payment can completely change how people see the homebuying process. For many, like the Texas couple, these programs don’t just make buying a home easier—they make a dream that once seemed impossible become real.