Berkshire Hathaway urges homebuyers to use down payment assistance programs

When I bought my first house in 2022, I struggled to scrounge up the money for closing costs and a down payment. I wasn't even striving to make a 20% down payment - I was putting down the lowest amount possible, which was 3%.

As someone who had been reporting on mortgages and real estate for years, I understood the financial details of buying a house. My husband and I both had jobs that paid relatively well. So, why was saving for a 3% down payment still draining our finances?

The answer: Because houses are expensive, and gaining value all the time. Back then, I looked into a few assistance programs we might qualify for, but in hindsight, I wish I had hunkered down and done more research.

A recent article by Berkshire Hathaway drives home the importance of first-time homebuyers taking advantage of down payment assistance programs.

"There are a lot of programs designed to help you save for a down payment - and they can make a big difference in how fast you hit your savings target," the Berkshire Hathaway article reads. "Unfortunately, buyers don't realize how many there are, or that they may qualify for help."

Few eligible Americans use down payment assistance

A down payment assistance programs gives you money to use toward a down payment and/or closing costs. This can be in the form of a loan or a grant that you don't have to pay back.

According to Realtor.com data from 2024, around 80% of first-time homebuyers were eligible for down payment assistance programs. However, only 13% actually used these programs.

Related: Americans are losing money with this homebuying mistake

In late 2025, Down Payment Resource reported that the average down payment assistance benefit was $18,000, making DPA one of the most important tools in helping first-time buyers tackle the home affordability crisis in the U.S.

"Imagine how much further your savings could go with an extra $18,000 you can use to buy," reads the Berkshire Hathaway article. "In some cases, you may even be able to stack multiple programs, giving what you've saved an even bigger boost."

One problem is that many homebuyers don't even know that DPA programs are on the table, let alone whether they qualify for assistance.

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Who qualifies for down payment assistance?

According to the Federal Deposit Insurance Corporation (FDIC), many housing finance agencies (HFAs), which are at the state level, offer one DPA program for the general public and others for specific groups, such as teachers, recent college graduates, or military-affiliated borrowers.

Many are aimed at first-time homebuyers. You clearly qualify as a "first-time homebuyer" if you've never owned a house before. But mortgage lenders also consider you to be a first-time buyer if you haven't owned property in the last three years.

However, according to Down Payment Resource data, almost 40% of the DPA programs in its database don't require you to be a first-time homebuyer. If you're a repeat buyer, it's still worth looking into programs.

More on mortgages and home affordability:

• Real estate experts spot crucial signal for homebuyers
• Freddie Mac reveals shifting mortgage rate trends
• NAR reveals problem with home affordability and down payments

Each state HFA has its own rules about what types of properties qualify for down payment assistance. Most states agree that the programs are only for owner-occupied properties. So you couldn't, say, buy a house to use as a rental property and qualify for HFA assistance.

In the majority of cases, your income also must fall under a certain threshold for you to be eligible.

Most states also require you to attend a homebuyer education course to be eligible for down payment assistance. This is especially useful for first-time homebuyers who can use all the knowledge they can get before purchasing a property.

Common types of down payment assistance programs

There are multiple types of down payment assistance programs, so it's always worth asking your mortgage lender about what you qualify for.

Most are offered through state HFAs, but some are available through local governments or individual mortgage lenders. Here are the options.

• Down payment grants do not require you to repay the money.
• Zero- or low-interest second mortgages are customary. When you're required to repay the assistance money, it's considered a second mortgage, because it's a loan on your house alongside your regular mortgage loan. Some down payment loans don't charge interest, while others impose low rates.
• Deferred second mortgages postpone your repayment until you sell, move, or refinance.
• There are several types of forgivable second mortgages. Some will forgive your entire DPA amount, others just a portion of it. You must meet specific stipulations to qualify for forgiveness. For example, a percentage of your loan may be forgiven each year you stay in the home, and if you live there for 10 years, the second mortgage debt is wiped clean.

Related: Zillow shares shift in home sales, housing market

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This story was originally published May 5, 2026 at 8:03 AM.