Down Payment Assistance: What You Need to Know Before You Buy

Buying a home is a major milestone—and for many, the biggest barrier is the down payment. But did you know there are programs out there that can help? If you’re dreaming of homeownership but feel stuck because of upfront costs, down payment assistance could be the key to unlocking the door to your new home.

What Is a Down Payment?

A down payment is the upfront cash you put toward a home’s purchase price—typically a percentage of the total cost—before financing the rest with a mortgage. The typical range of down payments is 3% to 20%.

What you pay for the down payment can be based on a range of factors including, the type of mortgage loan you qualify for, the total cost of the home, and more. Covering a down payment can be challenging for many homebuyers—but fortunately, down payment assistance programs can help.

What Is Down Payment Assistance?

Down payment assistance is money provided to help buyers cover the initial costs of purchasing a home, including the down payment and sometimes also the closing costs. These programs can come in several forms:

• Grants – These are funds that do not have to be repaid
• Forgivable Loans – Loans that are forgiven after a certain number of years, provided you stay at the same home
• Deferred Loans – Loans with no payments due until you decide to sell or refinance the property
• Low-Interest Loans – Repayable over time, usually with favorable terms

Curious which loan fits your budget? See your mortgage options »

Who Qualifies for Down Payment Programs?

Many programs are designed to help first time homebuyers, but don’t let that term fool you—if you haven’t owned a home in the last three years, you may still qualify.

Some common requirements include:

• Income and purchase price limits (based on area median income)
• Credit score minimums (usually around 620 or higher)
• Completion of a homebuyer education course
• Purchasing a home within specific price or location guidelines

What Down Payment Programs Are Available?

Down payment assistance programs vary by state, county, and even city. In Ohio, there are several options for eligible buyers:

Statewide & Regional Programs

• OHFA Your Choice! DPA – Offers 2.5% or 5% of the home’s purchase price toward your down payment, closing costs, or other pre-closing expenses. Assistance is forgiven after seven years; if you sell your home within seven years, you must repay the assistance provided.
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• Welcome Home Program (WHP) – Provides grants of up to $20,000 for down payment and closing costs for low- and moderate-income homebuyers. Available through participating lenders on a first-come, first-served basis.
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• Miami Valley Community Action Partnership (MVCAP) – Offers up to $5,000 in down payment assistance and homebuyer counseling for prospective homeowners at or below 65% of the Area Median Income (AMI) in Montgomery, Greene, Darke, and Preble counties.
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• HomeOwnership Center of Greater Dayton – Provides a down payment assistance program offering up to 10% of the home’s purchase price (not to exceed $8,000) for first-time homebuyers in Montgomery County (excluding Dayton and Kettering). This is a 0% deferred second mortgage.
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• Miami Valley Fair Housing Center – ICF Program – In partnership with the HomeOwnership Center of Greater Dayton, offers up to a 20% equity contribution in the form of down payment assistance for eligible buyers in ZIP codes 45417 (Dayton) and 45426 (Trotwood).
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City-Specific Programs

• City of Kettering First-Time Homebuyer Assistance Program – Provides up to 10% of the home’s purchase price (up to $20,000) in down payment and closing cost assistance for first-time homebuyers purchasing within Kettering city limits. The program is administered in partnership with Day Air Credit Union.
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• City of Middletown HOME Program – Offers non-repayable loans of up to $5,000 (6% of the purchase price) for down payment and closing costs for homebuyers purchasing within Middletown city limits. Additional incentives are available for purchases in target neighborhoods.
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• Butler County Down Payment Assistance Program – Provides assistance to eligible low-income first-time homebuyers purchasing single-family homes in Butler County, including the cities of Hamilton and Middletown.
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• Clark County CHIP Homeownership Assistance Program – Offers down payment assistance and property rehabilitation assistance for eligible homebuyers in Clark County, including Springfield. Funding is limited and provided on a first-come, first-served basis.
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• City of Dayton Down Payment Assistance Program – Provides qualifying individuals and families with up to 10% of the purchase price of a home purchased in the city of Dayton.
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• City of Troy’s Homebuyer Incentive Program (HIP) – Offers down payment and/or closing cost assistance in the amounts of $15,000 & $20,000 to income-eligible first-time homebuyers in Troy.
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• City of Troy Residential Exterior Housing Improvement Loan Program – Provides loans up to $40,000 for exterior home improvements to eligible homeowners in Troy.
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• City of Cincinnati American Dream Downpayment Initiative (ADDI) – Provides down payment assistance of up to $14,000 to lower- to middle-income first-time homebuyers buying a single-family property in Cincinnati.
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• The Port – Communities First Down Payment Assistance Program – Offers 3%, 4%, or 5% down payment assistance grants to eligible homebuyers in Cincinnati.
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• HomeBase Cincinnati Down Payment Assistance Program – Provides down payment assistance funds to support the efforts of member Community Development Corporations (CDCs) to increase sales of property renovated or constructed by local CDCs in Cincinnati.
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• NEST Egg Homebuyers Assistance – Offers grants equal to 10% of the home purchase price up to $15,000 to eligible recipients purchasing a home offered for sale by NEST in Cincinnati.
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How Much Down Payment Assistance Can You Get?

The amount you receive depends on the program, your income, and the cost of the home—but many buyers can receive up to thousands of dollars in assistance. This could mean the difference between continuing to rent or finally owning a place of your own.

Why Down Payment Assistance Matters

With rising home prices and inflation, saving for a down payment can feel out of reach—but DPA programs are designed to level the playing field. These resources help make homeownership more accessible, especially for:

• First time homebuyers
• Single parents
• Veterans
• Educators and first responders
• Buyers in rural or underserved areas

Homeownership Might Be Closer Than You Think

Don’t let down payments hold you back from your homeownership goals. With the right information and support, you could qualify for valuable assistance that puts keys in your hand faster than you imagined.

Have questions? A Coldwell Banker Heritage agent is happy to guide you through the process and connect you with trusted lenders who know the ins and outs of local programs.

Let’s make your dream home a reality—with a little help and a lot of expertise.