Your options at a glance
Down payment assistance is not one program. It is a toolbox. The right tool depends on your credit, where you are buying, your income and whether you have served. Here is how the main options compare.
| Feature | What you get | Who it fits |
|---|---|---|
| IMS Homebuyer Grant | Up to 5% of the price for closing costs, escrow or down payment | 620+ score, first-time or repeat buyers |
| 1% Down Mortgage | You put down 1%, the lender adds 2% | 620+ score, income within area limits |
| VA loan | $0 down, no monthly mortgage insurance | Eligible Veterans and service members |
| USDA loan | $0 down, 100% financing | Eligible rural areas, income limits |
| FHA with gift funds | 3.5% down that family can gift | Fair credit, help from relatives |
| Seller concessions | Seller pays part of your closing costs | Any buyer, negotiated in the offer |
Grants: free money toward the costs that stop buyers
The IMS Homebuyer Grant Program offers grants of up to 5% of the purchase price. You can apply the funds to closing costs, setting up escrow, the down payment or other upfront costs, and it works with FHA, VA, USDA and conventional loans. On a $200,000 home that is up to $10,000 working for you.
Lender contributions: put 1% down, start with 3%
Our 1% Down Mortgage flips the usual math. You bring 1% and the lender contributes 2%, giving you 3% equity on day one, a 30-year fixed rate and an option with no monthly mortgage insurance. With a 680+ score you may qualify for up to 4.5% in lender grants.
Zero down loans for Veterans and rural buyers
VA loans and USDA loans both allow 100% financing. If you have served, or you are buying in an eligible small town, you may not need a down payment at all. Pair either one with a grant or seller concessions and your cash to close can be very small.
Gift funds and seller concessions
Family can help. Most programs accept gift funds from relatives with a gift letter and a clear paper trail. Sellers can help too. Depending on the loan, a seller can contribute toward your closing costs, up to 6% of the price with FHA and USDA. In a balanced market, asking for concessions is a normal part of an offer, and we will tell your agent exactly how much your loan allows.
To qualify for most assistance
- A credit score that meets the program, often 620 or higher
- Steady, documented income
- The home will be your primary residence
- Income and location within program limits where they apply
- Approval from the lender on the loan and property
