Home prices are near all-time highs. Mortgage rates are more than twice what they were during the pandemic. Buying a home can seem impossible. Income isn’t keeping up with home prices, either.

Home prices relative to income rose to their highest point even in 39 markets across the country in 2024, according to Harvard University’s Joint Center for Housing Studies, up from 19 markets in 2019.

Down payment assistance programs (DPAs) – homebuying initiatives that provide a loan for down payments – give a financial boost to aspiring homeowners struggling to find affordable options in the 2026 housing market.

“DPAs continue to proliferate across the country because a down payment continues to be the biggest hurdle for first-time buyers trying to enter the housing market-especially while home prices have continued to rise faster than wages,” said Chloe Shubin, vice president of operations and strategy at mortgage lender Griffin Funding.

More than 2,600 such programs are available at the federal, state and local levels, said Lisa Lund, a mortgage broker and owner at Lund Mortgage Team. Finding the programs and knowing their qualifications are an important part of the process, as not every homebuyer qualifies.

“The most suitable DPA programs vary by state and local market, so prospective buyers should evaluate the options available in their area rather than relying on a single national program,” Lund said.

National Homebuyers Fund

This national fund provides homebuyers with down payment or closing-cost assistance of up to 5 percent of the buyer’s mortgage amount. A buyer would be eligible for up to $20,000 of assistance for a $400,000 home loan, for example.

The program allows for a wide range of buyers, and there are no first-time homebuyer requirements. Buyers can use the program for multiple types of mortgages, including:

The program states its income limits are “higher than expected,” and both credit-score requirements and debt-to-income ratios – total monthly income compared to total monthly debt payments – are lenient, the fund notes.

At least one type of National Homebuyers Fund mortgage – “Platinum” – doesn’t put a limit on the home sale price, requires a minimum 640 credit score and has a maximum debt-to-income ratio of 45 percent.

The program is available in every state except New York and Washington, according to Florida-based Essex Mortgage.

Chenoa fund

This national program offers down payment assistance of up to 3.5 percent or 5 percent for mortgages from programs such as the Federal Housing Administration and Fannie Mae. The program’s minimum credit requirement is 600, while there are no income limits and participants don’t have to be first-time homebuyers, according to the fund.

Funding from Chenoa is treated as a second mortgage – homebuyers, in most cases, will close on their home with a mortgage from their primary lender and a mortgage from Chenoa.

The program provides homebuyer support for up to 18 months after the home purchase through Money Management International, a nonprofit debt management firm. The group provides buyers with educational materials and tools as well as monthly support.

The program is available in every state but New York.

Chenoa notes the importance of down payment assistance programs in a time when fewer people can afford a home down payment.

“Studies reveal that many would-be buyers have the income and credit history to qualify for a loan, but they lack sufficient savings for a down payment,” the program says. “This barrier is often the most significant economic obstacle for families seeking to transition from renting to sustainable homeownership, and the consistent availability of down payment assistance programs can make all the difference for more U.S. families.”

California’s Dream for All program

The Dream for All program combines up to 20 percent of a buyer’s down payment or closing costs (capped at $150,000) for Dream for All conventional mortgages, according to the California Housing Finance Agency.

Applicants earn as much as or less than income limits of $153,000 to $310,000, which vary depending on the county the borrower resides in, according to the California Housing Financing Agency.

To be eligible, the buyer must be a “first-generation” homebuyer, which means they have to meet the following requirements, according to the California Housing Financing Agency:

Eligible applicants enter a drawing for the program; winners are given vouchers they can use for their home purchase.

The program provides homebuyers with a “shared appreciation” loan that’s a little more complex than the typical mortgage. If approved, borrowers use the loan for a down payment or closing costs. They have to repay the loan, plus 20 percent of the amount the home appreciates during ownership (if applicable), according to the California Housing Finance Agency.

“Many state housing finance agency programs similarly combine assistance with traditional mortgage products,” Lund said.

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