Down payment aid programs can give you an average $18K to buy a home. Here's how to qualify even if you make over $100K
Down payment aid programs can give you an average $18K to buy a home. Here's how to qualify even if you make over $100K
MoneywiseThu, March 26, 2026 at 10:17 AM UTC
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Middle-class families now qualify for down payment assistance programs.
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As home prices skyrocket, so does the size of down payments. Buyers from Boise, Idaho, to Bethesda, Maryland, are feeling the squeeze as they stockpile down payments that often exceed $50,000.
Those who are struggling include middle-class households earning anywhere from the national median income of just over $83,000 (1) to $100,000 or more.
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They face a special dilemma. On the one hand, they earn too much for traditional down payment aid — but on the other hand, they don’t earn enough to qualify for a mortgage without a big down payment.
However, there’s financial relief in sight for these and other households.
According to a 2026 report from Down Payment Resource, eligibility for down payment assistance programs has broadened across the U.S., especially where home prices have spiked the most (2). In fact, there are currently 2,000 home-buying assistance options nationwide — and more than half of those are open to buyers earning six figures, according to the report.
So, if you’re curious about whether you qualify, here’s how you can apply for these homeownership assistance programs, even if you earn a comfortable middle-class salary.
Finding housing help
According to Down Payment Resource, the average homeownership assistance benefit is $18,000, and that can be used to help with closing costs and the down payment.
Of course, that figure varies depending on the circumstances and location.
For example, the Federal Home Loan Bank of New York Home Buyer Dream Program (HDP) offers as much as $19,500 to borrowers getting a mortgage through an approved member lender, and $500 toward homeownership counseling (3).
If those numbers are starting to look too good to pass up, the fastest way to find active programs is to use a database tool, such as the one offered by Down Payment Resource (4), to search by location and household details.
It’s also worth noting that state and local housing finance agencies run the highest-volume programs, and they often offer a combination of a first mortgage and second-lien assistance.
Read More: 5 essential moves to make once you’ve saved $50,000
Pros and cons
Because many programs are structured as a low-interest second mortgage on your home, it’s important to apply through a participating lender.
These programs can also come with resale, refinance and occupancy rules, so if you plan to move out of your home, you may need to repay your down payment assistance loan in full.
That could wipe out any equity you’ve gained in the house.
However, some second mortgages with down payment assistance are forgivable, so you may be able to benefit from “free money.”
And finally, once you identify a potential program (or programs), it’s always a good idea to confirm the details on the official website of the program administrator.
You want to protect yourself while you’re shopping for programs.
Keep shopping around for lenders
As you’re shopping around for the right down payment assistance program, don’t forget that you also look for the right lender for your principal mortgage.
Freddie Mac recommends this shopping around, obtaining quotes from three to five lenders to secure the best possible mortgage rate possible. Even a small rate reduction can translate into significant savings over the life of a loan.
To make this process easier, places like the Mortgage Research Center (MRC) can help you quickly compare rates and estimated monthly payments from multiple vetted lenders.
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By entering basic details — such as your zip code, property type, price range and annual income — you can view mortgage offers tailored to your needs and shop with confidence.
Applying and qualifying for down payment assistance
Program administrators will consider the following:
property location
property price (there may be a price cap)
household size
buyer’s credit profile
whether the applicant is a first-time buyer (first-time buyers usually put down 10% and repeat buyers put down 23%) (5)
Your choice of lender and loan type is also critical. Some assistance only pairs with certain mortgage products or approved participating lenders.
Moreover, housing finance agency programs often require you to work with a specific list of lenders who are trained in their requirements.
Many of these homeownership assistance programs work alongside the following:
conventional housing programs
Federal Housing Agency (FHA) programs
Veterans Affairs (VA) housing assistance programs
U.S. Department of Agriculture (USDA) housing programs
Keep in mind, the specific pairing depends on individual program rules. And eligibility can be about more than your income. It can also include completing an approved course or counseling certificate.
Waiting until you are already under contract to complete this requirement can slow down your purchase timeline, so it’s wise to finish the education and application process early to avoid losing a home during the bidding or underwriting process.
You’re not alone — a financial professional can help
If all of these options are starting to feel a bit overwhelming, you can always help determine your financial eligibility — and structure your resources to take on a mortgage — with the help of a financial advisor.
An advisor can help crunch the numbers and build a plan that works.
That’s where Advisor.com comes in. The platform connects you with an expert near you for free.
Advisor.com does the heavy lifting for you, vetting advisors based on track record, client ratios and regulatory background. Plus, their network comprises fiduciaries, who are legally required to act in your best interests.
Just enter a few details about your finances and homeownership goals, and Advisor.com’s AI-powered matching tool will connect you with a qualified expert best-suited for your needs based on your unique financial goals and preferences.
Finding the right advisor isn’t always easy — there’s no one-size-fits-all solution. That’s why Advisor.com lets you set up a free initial consultation with no obligation to hire to see if they’re the right fit for you.
Long-term considerations and alternatives for buyers
Ultimately, if you’ve done all your research and find out you’re not eligible for a homeownership assistance program, there are still other ways to boost your down payment.
For example, family gift funds are a common source of cash, but you can also tap into your IRA for up to $10,000 if you’re a first-time buyer.
That’s because when you withdraw money from an IRA before you turn 59.5 years old, you usually have to pay a 10% penalty; however, the IRS makes an exception for first-time homebuyers (6).
The only downside is that you may have to pay income taxes on the withdrawal, depending on the type of account.
Whether or not you decide to go that route, it’s worth remembering the down payment is only one part of the affordability equation. Mortgage rates — currently hovering above 6% — and monthly payment reality should drive your strategy.
In the end, while down payment assistance is a powerful on-ramp to homeownership for both moderate and higher earners, the best approach is to search locally, work with an experienced lender and carefully read the fine print before handing over a down payment and committing to a mortgage.
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Article sources
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
Federal Reserve Bank of St. Louis (1); Down Payment Resource (2), (4); HomeTrek (3); National Association of Realtors (5); IRS (6)
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
Source: “AOL Money”
