The deposit is the main obstacle for most first-time buyers, and a large number of programmes exist specifically to address it. They are underused because they are administered by state and local agencies under names that do not appear in ordinary searches.
The forms assistance takes
Grants that need no repayment. Least common, most valuable.
Forgivable loans that are written off if you stay in the home for a defined period, commonly five to ten years. Very common and effectively a grant if you do not move.
Deferred loans with no monthly payment, repaid when you sell or refinance.
Low-interest second mortgages repaid alongside your main loan.
The structure matters enormously for what happens if you move sooner than planned. Read which one you are being offered.
Where the programmes come from
State housing finance agencies. Every state has one, and they are the largest source. They typically combine a competitive mortgage with assistance for the deposit and closing costs.
City and county programmes. Often targeted at specific neighbourhoods the area wants to stabilise. Smaller but less competitive.
Employer assistance. Hospitals, universities and large employers sometimes help staff buy nearby. Almost nobody asks.
Occupation-specific programmes for teachers, healthcare workers, first responders and public employees.
Non-profit programmes, some structured as matched savings where your deposit is multiplied.
Typical requirements
Most programmes require income below a limit, a purchase price under a cap, the home as your primary residence, and completion of a homebuyer education course. Many but not all require first-time buyer status, which is often defined as not having owned in the past three years rather than never.
That definition catches many people who assume they are ineligible.
How to actually find them
Start with your state housing finance agency website, which lists their own programmes and often local ones. Then contact a housing counselling agency, which in the United States can be found through the housing department directory and which advises at no cost.
Then ask lenders directly. Some specialise in assistance programmes and know exactly what stacks with what. Ask how many assisted purchases they closed recently.
What to check before committing
How long you must stay before the assistance is forgiven, whether there is a recapture provision if you sell at a profit, whether it restricts which lenders you can use, and whether the required mortgage rate is competitive.
Occasionally a programme provides assistance but requires a mortgage priced high enough to cost more over time. Compare total cost, not just the cash at closing.
Watch the timing
Many programmes are funded in cycles and run out. Apply early in the funding year where possible, and get your education certificate completed in advance so it does not delay you.