# Down payment assistance

> Money from a state, local or federal program toward your down payment and closing costs. It comes as a grant you don't repay, a loan that's forgiven after you live in the home for some years, or a 0% loan you repay when you sell or refinance.

By David Knorr, founder of BuyWise Home. Last reviewed October 28, 2026. Web page: https://www.buywisehome.com/guide/glossary/down-payment-assistance

## Why it matters to you

It can cover thousands of dollars you'd otherwise need in cash. Most programs have income and price limits, need a homebuyer course, and must be arranged through a participating lender before closing, so look before you choose a lender. [Find the federal and state programs that may fit](https://www.buywisehome.com/guide/tools/down-payment-help).

## Related

- [Step 1: Am I ready to buy?](https://www.buywisehome.com/guide/ready-to-buy)
- [Down payment](https://www.buywisehome.com/guide/glossary/down-payment): The part of the price you pay in cash. The loan covers the rest.
- [Closing costs](https://www.buywisehome.com/guide/glossary/closing-costs): Fees paid at closing on top of the down payment, often 2%–5% of the price.
- [FHA loan](https://www.buywisehome.com/guide/glossary/fha-loan): A government-backed mortgage with down payments from 3.5%.
- [Pre-approval](https://www.buywisehome.com/guide/glossary/pre-approval): A lender's written estimate of what it will lend you, after checking your finances.

_General information based on the standard Georgia REALTORS® purchase contract and public guidance. Your own contract decides: read it, and ask your agent or closing attorney about anything that matters. Not legal or financial advice._