skip to Main Content

Down Payment Assistance Options

Probably the largest obstacle for a first time home buyer is saving for a down payment and closing costs. Depending on the type of mortgage you apply for the expected down payment ranges from 3% to 20%. But don’t worry, help is available!

At Troy City we won’t let it get in the way of you owning a home and, with your good credit, there are down payment assistance programs that we can help you qualify for. We are licensed in Massachusetts, Rhode Island, Connecticut, and Florida, and each of these states have down payment assistance programs. Here is a summary of the programs in each of these states.


In Massachusetts there are two state agencies that coordinate state-wide down payment assistance.

MassHousing – Offers affordable mortgage options to low- and moderate-income buyers, closing cost assistance to military borrowers, and even a no-mortgage-insurance-required program, among other benefits.

Massachusetts Housing Partnership – Offers the ONE Mortgage Program for first-time home buyers, which gives you peace of mind knowing that your mortgage is financially sustainable.

Additionally, many Massachusetts towns and cities have down payment assistance programs administered through the local Housing Authority. Generally speaking these programs provide down payment assistance of 5% of a home’s purchase price, up to $25,000.

Once you decide where in Massachusetts you want to live Troy City Mortgage will work with you to secure the most generous first-time buyer down payment assistance possible.

Rhode Island

Rhode Island Housing is the primary agency that coordinates first-time home buyer down payment and closing cost assistance programs. Their two assistance programs are:

  • First Homes Tax Credit– The program provides qualified first-time Rhode Island home buyers (and non-first time home buyers purchasing a home in parts of Central Falls, Pawtucket, Providence, and Woonsocket) with a mortgage credit certificate. You’ll receive a dollar-for-dollar tax credit of up to $2,000 against your federal tax liability for the life of the loan.
  • Closing Cost and/or Down Payment Assistance– Rhode Island Housing offers a 15 year fixed second mortgage to finance the down payment and/or closing costs.

Providence, Cranston, Woonsocket, and Central Falls also offer down payment and closing costs assistance programs above and beyond what is offered by Rhode Island Housing.


The Connecticut Housing Finance Authority (CHFA) is the main source of down payment and closing cost assistance programs in Connecticut. They can also provide access to inexpensive mortgage programs for first-time buyers that help bridge the gap between your savings and your down payment needs.

If you have the monthly income to make mortgage payments, but not enough pay the upfront costs, you may qualify for a low-interest loan that helps cover the down payment and closing costs. Borrowers can finance the down payment and closing costs with a Down Payment Assistance Program (DAP) Loan. A DAP Loan provides home purchase assistance up to $20,000 to put towards your down payment and closing costs.

In order to qualify for a DAP Loan you must first apply and qualify for a CHFA mortgage and be able to demonstrate your ability to repay both your first mortgage and the DAP loan.

There is also down payment assistance available through the Housing Development Fund, Inc. (HDF). HDF has first-time home buyer down payment assistance programs to help make buying your first home affordable. If qualified HDF offers first time buyers two primary down payment assistance programs:

  • SmartMove CT offers low interest down payment assistance for CT first time homebuyers for up to 25% of purchase price when used for down payment and qualified closing costs.
  • Live Where You Work CT provides up to $20,000 in 0% down payment assistance for first time homebuyers purchasing homes in the city where they work.

At Troy City we stand ready to help you with the qualification and application process.


Down payment assistance is available through the Florida Housing Finance Corporation (FHFC). First-time homeowners can apply for a 3% or 4% FHFC preferred down payment grant. The grant amount is based on the purchase price of the home, and unlike loans, do not have to be repaid.

If you’re not eligible for a FHFC down payment grant there are other options. FHFC offers down payment and closing cost assistance in the form of a second mortgage loan to assist eligible homebuyers with their down payment and closing costs. The Florida Assist Loan offers up to $7,500 and the Florida Homeownership Second Mortgage provides up to $10,000 to be used for down payment and closing costs.

The Florida Assist Loan is a deferred second mortgage with a 0% interest rate. The Florida Homeownership Loan Program Second Mortgage is a 15-year second mortgage with a 3% interest rate. Program eligibility for these programs is determined by your income level.

At Troy City Mortgage we are dedicated to helping you buy a home. If you’re a first-time home buyer who needs help getting your down payment together, we stand ready to shepherd you through the process. Use this link to schedule a time for your free qualifying consultation.

Back To Top
×Close search
Traduz para o português