It depends on the type. Down payment assistance comes in three forms: grants you never repay (e.g. Texas’s TSAHC grants), deferred loans you repay only when you sell or refinance (e.g. California’s CalHFA MyHome), and forgivable loans that are wiped out after you live in the home a set number of years (e.g. Ohio’s 7-year forgivable option). On a $299,188 home the $8,976 down payment could come from any of these — which one changes whether, and when, you pay it back.
As of Q1 2026 there are 2,679 down payment assistance programs in the U.S., and 77% are active and funded (source: Down Payment Resource, Q1 2026 program count). Most cover part or all of the 3% conventional or 3.5% FHA minimum down payment.
Related questions
What is a forgivable down payment assistance loan?
A second loan that is gradually cancelled the longer you stay in the home — commonly forgiven fully after 5–10 years of owner-occupancy, leaving you owing nothing.
Is down payment assistance ever truly free?
Grants are non-repayable, so effectively yes. Forgivable loans become free once you meet the occupancy term. Deferred loans must eventually be repaid, usually at sale or refinance.
Do you pay interest on assistance?
Many programs are 0% interest, especially deferred and forgivable seconds. Terms vary by agency — confirm on the official program page.