Affordability is forecast to modestly improve in the year ahead, but many homebuyers are likely to still need a little help getting through the front door of their next home.
On that front, there are a slew of programs aimed at assisting homebuyers, ranging from federal loans with flexible credit requirements to state grants and employer-sponsored down payment help. And as affordability remains both a local and national talking point, the menu of options designed to reduce both the money you need to close and the amount you’ll pay each month is likely to grow.
“I cannot overstate how positive the changes in 2026 will be for many states,” says Sain Rhodes, a real estate expert at Clever. But, she warns, there are some “catastrophic misperceptions” that could hold buyers back from taking advantage of the many programs available to them.
Here’s what to know, what’s new, and how to avoid the most common missteps in 2026.
What help looks like in 2026
Most homebuyer programs solve one of two problems: cash to close (down payment and closing costs) or the monthly payment (mortgage insurance or program fees that function like insurance).
Buyers often focus on the perk—“3.5% down,” “zero down,” or “no mortgage insurance”—but that may be missing the point.
For one, a low mortgage rate will do little for a buyer who has no cash to cover closing costs or a down payment. That’s why a more useful metric is to focus on whether the program meaningfully lowers the barrier that’s stopping you from buying.
For another, you may not qualify for the program at all.
As Rhodes put it, “I see the same three heartbreaking and disastrous patterns at closing,” often because buyers chase assistance before confirming they actually qualify, or because the home itself doesn’t meet the program’s property standards.
It’s a critical distinction for homebuyers looking for assistance in the year ahead.
Eligibility gates—whether they be military service status, property location, or income limits—matter far more than any headline benefit. That’s why it’s useful to think of it as a matching problem: Pick the program that targets your constraint, then get program-specific pre-qualification before you shop so you don’t discover the fine print after you’ve already gone under contract.
Programs to know in 2026
Aid programs usually fall into one of six buckets listed below. Each one solves a different constraint but comes with its own limits of who or what qualifies.
Federal Housing Administration (FHA) loans
FHA loans are a common path for buyers who need a low down payment (often starting as low as 3.5%) and more flexible underwriting than conventional financing. Rhodes says she often points young buyers here because it can make the upfront math workable when saving 10% to 20% would take years.
The trade-off is that FHA comes with its own mortgage-insurance structure, so it’s not always the cheapest long-term option, especially for higher-credit borrowers who may be able to qualify for lower private mortgage insurance. Likewise, homes that are financed with an FHA loan often have to meet strict safety standards, which sometimes exceed those of a private lender.
Department of Veterans Affairs (VA) loans
For eligible veterans, active-duty service members, and qualifying surviving spouses, VA loans offer the strongest payment relief available: 0% down and no monthly mortgage insurance. And because they eliminate two of the biggest upfront and ongoing costs of homeownership, VA loans are often the best option to explore if you qualify.
But even for those who are eligible, there can be complications. These loans rely on what’s called entitlement, or the amount the Department of Veterans Affairs guarantees on your behalf. If your entitlement is already tied up in an existing loan, you may need to sell the home, refinance, or apply for a one-time restoration to reuse the benefit.
U.S. Department of Agriculture (USDA) loans
The USDA offers another 0% down option, but it’s pegged to location and income requirements.
These loans are designed to help low- to moderate-income buyers purchase a primary residence in eligible rural and some suburban areas. The main catch is that USDA is a two-part eligibility program: The property has to fall inside an eligible boundary and the household has to meet income requirements that are also location specific. So a buyer shopping on the edge of a metro should check the map and income tool before they bid.
HomeReady or Home Possible
HomeReady (by Fannie Mae) and Home Possible (by Freddie Mac) are conventional mortgage programs designed to help low- to moderate-income borrowers buy homes with smaller down payments (as low as 3%) and more flexible requirements.
They can be a strong alternative to FHA for buyers with stronger credit profiles, because the monthly cost of private mortgage insurance (PMI) can pencil out better than FHA’s insurance pricing. They’re also useful for buyers who expect their income or home value to rise and want a clearer runway to removing PMI later.
State and local Housing Finance Agency (HFA) programs
This is where much of the true down payment assistance lives. Many localities offer specific programs to help residents purchase homes in the area, often structured as grants, forgivable second mortgages, or deferred-payment loans.
One such program in Pawnee City, NE, offered $50,000 in down payment assistance to buyers of newly built homes.
While the Pawnee City example is an eye-popping sum, awards and terms vary widely by state and county, and the eligibility requirements can be just as diverse. The key to taking advantage of these programs is to treat HFA help as a separate qualification track, not a last-minute add-on.
Employer down payment assistance (EAH)
There may be one other place you never thought to look for help buying a home: Your boss.
Employer down payment assistance programs are an often overlooked and sometimes surprisingly generous form of homebuyer assistance. Rhodes calls it “underused” and recommends buyers check with HR or benefits departments, especially at large employers, unions, hospitals, universities, and municipal agencies that use housing benefits for recruitment and retention.
These programs may come as grants, matched savings, or forgivable loans, and they can sometimes stack with other assistance if the lender confirms it upfront.
How these deals fall apart at closing, and the playbook to avoid it
Rhodes says she sees “the same three heartbreaking and disastrous patterns at closing,” but adds that they’re all preventable if buyers treat assistance as a set of rules instead of a coupon you apply at the end.
First, buyers aren’t pre-qualified for the specific assistance program before they make an offer. Down payment assistance and HFA loans can add their own income limits, debt to income (DTI) caps, household definitions, purchase-price ceilings, and property-type rules.
The fix is straightforward: Ask your lender for a program-specific approval before you bid.
Second, deals get hit by property-condition and appraisal surprises, especially with programs that have stricter standards than a typical conventional loan.
FHA, USDA, and VA loans can all fall into this bucket, so be sure to understand the requirements before placing a bid on a home. For example, you can’t buy a house with a pool that has a diving board with a VA loan.
Third, buyers underestimate time. Layering assistance programs often means more documentation and more parties, which can stretch closings from roughly 30 days to more than 60 days.
The fix is to plan for it upfront: Write offers with a timeline that matches the financing and avoid setting yourself up for a rushed closing.
How to take advantage of these programs in 2026
The key for the year ahead will be less about hunting for a single magic program and more about using a slightly softer market to get your foot in the door.
Mortgage rates are forecast to average around 6.3% and affordability to improve only modestly, with the typical monthly payment dipping below 30% of household income for the first time since 2022, according to research from Realtor.com®. It’s helpful, but not a total reset.
But it’s also exactly why programs that reduce cash to close or the monthly payment can make the difference between “almost” and “approved” in 2026. And with inventory ticking up and competition cooling in many markets, buyers who come in prepared have a stronger chance of success. Just be sure to get your eligibility locked in before you fall in love with a house—so when the right one comes along, you’re ready to move.
Reach out to me if you have any questions you may have regarding Reduced Mortage Insurance or Down Payment Assistance. I’m here to answer all your real estate questions.
Sandy Herrick
ReeceNichols
913-205-4333
