9 Down Payment Programs That Could Help You Buy a Home in 2026

Buying a home is still one of the best ways to build wealth. Research from Realtor.com shows that people who buy their first home before age 30 end up with about 22.5% more wealth by the time they turn 50.

However, saving for a down payment can be tough. About 20% of first-time buyers get money from family or friends to help cover this cost. But what if you don't have that kind of support?

Good news: There are several programs designed to help. Here are nine options worth exploring.
 

1. FHA Loans

 

• What it is: A loan backed by the Federal Housing Administration.
• Key benefits:
  • Only 3.5% down payment required
  • Can be used to buy a single-family home or a property with up to four units
  • Easier to qualify for, even with lower income or less-than-perfect credit

 

2. USDA Loans

 

• What it is: Loans backed by the U.S. Department of Agriculture for homes in rural areas.
• Key benefits:
  • No down payment required
• Two options available:
  • Housing Direct loans: For low-income buyers, with 33-year terms and payment help
  • Housing Guaranteed loans: 30-year fixed-rate mortgages for moderate-income buyers

 

3. VA Loans

 

• What it is: Loans for veterans, active-duty service members, and eligible spouses, backed by the Veterans Benefits Administration.
• Key benefits:
  • No down payment required
  • Lower closing costs
  • No Private Mortgage Insurance (PMI) needed

 

4. National Homebuyers Fund

 

• What it is: A program that provides money to help cover your down payment or closing costs.
• Key benefits:
  • Grants of up to 5% of your mortgage amount
  • California residents may qualify for up to 7% through a partnership with the Golden State Finance Authority

 

5. HUD Good Neighbor Next Door

 

• What it is: A program for teachers, police officers, firefighters, and EMTs.
• Key benefits:
  • Buy a home for 50% off the listing price
  • Must work in and live in a designated revitalization area
  • Required to live in the home for at least three years

 

6. Conventional 97 Loans

 

• What it is: A loan backed by Fannie Mae for first-time buyers.
• Key benefits:
  • Only 3% down payment required
  • Must not have owned a home in the past three years
  • Must have a credit score of at least 620
  • Requires a homeownership education course

 

7. Fannie Mae HomeReady

 

• What it is: A loan program for buyers with non-traditional income sources, like rental income.
• Key benefits:
  • Only 3% down payment required
  • You don't have to be a first-time buyer
  • Down payment can come from gifts, grants, or other programs

 

8. Freddie Mac Home Possible

 

• What it is: A low down payment program for low-income buyers.
• Key benefits:
  • Only 3% down payment required
  • Down payment can come from gifts, grants, employer programs, or even your own labor (sweat equity)

 

9. Bank-Sponsored Programs

 

• What it is: Grants and special loans offered by banks like Chase and Bank of America.
• Key benefits:
  • Grants of up to $10,000 available
  • Mortgages with just 3% down
  • Can be combined with FHA, VA, or other loan types
  • Ask your lender about what's available to you

 

Final Thoughts

You don't need wealthy relatives to buy a home. These programs exist to help everyday people achieve homeownership.

Take the time to explore your options, and don't be afraid to ask lenders about what assistance you might qualify for.

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Need help with your down payment? Find resources and assistance here!