Low-Income Homeownership Assistance — How It Works
Several federal programs make homeownership accessible for low- and moderate-income buyers. FHA loans require just 3.5% down with a 580+ credit score. USDA loans offer 0% down for rural properties with no minimum down payment. VA loans provide 0% down for eligible veterans. State Down Payment Assistance programs provide grants or low-interest second mortgages to cover down payment and closing costs.
Free HUD-approved housing counseling is available in every state and is required for many assistance programs. Counselors can help you review your credit, understand mortgage options, and identify state and local grants.
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Low-Income Homebuyer Programs Comparison
Low-Income Homebuyer Programs Comparison
2026 program requirements
| Program | Down Payment | Min. Credit Score |
|---|---|---|
| FHA Loan | 3.5% down | 580+ |
| USDA Loan | 0% down (rural) | 640+ |
| VA Loan | 0% down (veterans) | No minimum |
| State DPA Grant | Varies (covers DPA) | 620+ typically |
| HUD Good Neighbor Next Door | 50% off list price | 580+ |
Income limits apply to most programs. State DPA programs typically serve buyers at 80–120% AMI. USDA is capped at 115% AMI. Contact a HUD-approved counselor for your full picture.
How to Get Started With Homeownership Assistance
1
Get Free HUD Housing Counseling
HUD-approved counselors are free and required for many down payment assistance programs. They'll review your credit, income, and options with you.
Find a Free HUD Counselor →
2
Check Your Credit Score and Income
FHA requires 580+, USDA requires 640+, VA has no minimum. Most state DPA programs require 620+. Your income should be below 80–120% AMI for most programs.
3
Research Your State's DPA Programs
Every state offers unique down payment assistance. Some are grants (no repayment), others are second mortgages (low interest, deferred).
DPA Programs by State →
4
Apply for Your Mortgage
Apply through an FHA-approved lender, USDA-approved lender, or VA-approved lender. Bring your counseling certificate, income docs, and DPA award letter.
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Find Every Program You Qualify For
Take the free Benefits Match Quiz — discover DPA grants, FHA, USDA, and every homebuyer program available in your state.
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First-Time Buyers
First-Time Homebuyer Programs 2026 — Grants, Loans & Down Payment Help
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By State
Down Payment Assistance by State — Find Grants Near You
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Free Help
HUD-Approved Housing Counselors — Free Homebuyer Guidance
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Rural
USDA Rural Home Loans — 0% Down for Eligible Rural Buyers
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FHA
FHA Loan Guide 2026 — 3.5% Down for Low-Income Buyers
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