What is down payment assistance?

A down payment is the upfront portion of a home's price paid by the buyer. The median down payment for first-time buyers was 10% in 2025. Down payment assistance (DPA) programs, offered by banks, government agencies, and nonprofits, help buyers with grants, forgivable loans, or low-interest loans. Alternatives include low down payment mortgages and government-backed loans with specific eligibility criteria.