What are down-payment assistance programs?
Down payment assistance programs make it easier to get a loan if you have enough income but you do not have a down payment. This assistance varies, and could be grants, interest-free loans, or low-interest loan. Federal loan programs like FHA can mean a much smaller down payment is required (usually just 3.5 percent). Many down-payment assistance programs may also be offered to homebuyers as a second, silent mortgage, and they are only repaid when the mortgage is paid off or the home is sold.