Unlocking Homeownership: Down Payment Assistance Programs for First-Time Buyers

If you are a first-time homebuyer earning a solid income but struggling to save for a down payment, you are not alone. In 2025, rising rent prices and higher living costs have made saving tens of thousands of dollars feel nearly impossible, even for households earning more than $100,000 a year.

The good news is there are down payment assistance programs that can reduce or even eliminate the upfront cash you need to buy a home. These programs are designed to make homeownership realistic, even for buyers who have strong incomes but little saved.

In this article, we will look at three of the most widely available and flexible programs: Boost, Elevate, and Aurora. We will also cover the pros and cons of each and help you see which one might be the best fit if you are earning around $120,000 a year, do not have much in savings, and are comfortable with a higher monthly payment.

What Is Down Payment Assistance?

Down payment assistance programs provide grants, loans, or forgivable second mortgages that help cover your down payment. In some cases, they can also cover closing costs. Programs like these exist at local, state, and national levels, but the three we are focusing on today are available to most buyers across the country and come with very flexible guidelines.

1. Boost Down Payment Assistance Program

Boost is one of the most flexible options, especially for buyers with higher incomes who still need help with upfront costs.

Highlights of the Boost program:

• Provides either 3.5% or 5% in assistance

• Uses FHA guidelines

• Offers two choices: a forgivable loan after 30 years or a repayable second loan on a 15-year fixed term (with an interest rate typically 2% higher than the first loan)

• No income limits

• Allows non-occupant co-borrowers

• Not limited to first-time buyers

Who it helps most: Buyers who may not qualify for income-restricted programs but want the flexibility to combine assistance with their own savings or qualify with the help of a co-borrower.

2. Elevate Grant Program

Elevate offers an attractive path to forgiveness in a short amount of time.

Highlights of the Elevate program:

• Provides 1% to 3.5% in assistance

• Forgiven after six months of on-time mortgage payments

• Can be used with FHA or conventional loans

• Income limits are set at 160% of the Area Median Income (AMI). For example, if AMI is $80,000, the limit would be $128,000

• Allows non-occupant co-borrowers

• Not limited to first-time buyers

Who it helps most: Buyers earning higher incomes who still meet the AMI limits and want their down payment assistance forgiven quickly.

3. Aurora Down Payment Assistance Program

Aurora combines features of both Boost and Elevate while also offering something unique for buyers with lower credit scores.

Highlights of the Aurora program:

• Provides 3.5% or 5% assistance

• Works only with FHA loans

• Two choices: forgivable (with income limits) or repayable (no income limits)

• No minimum credit score required

• Allows non-occupant co-borrowers

• Not limited to first-time buyers

Who it helps most: Buyers who may not meet traditional credit score requirements but still want access to assistance, or higher-income buyers who need a flexible repayment option.

Pros and Cons of Down Payment Assistance Programs

These programs can be incredibly helpful, but it is important to understand both the advantages and trade-offs.

Pros:

• Reduce or eliminate the upfront cash needed

• Forgivable options can save thousands of dollars

• Available to both first-time and repeat buyers

• Non-occupant co-borrowers allowed

• Manual underwriting available if automated approval does not go through

💬 “What I love about these programs is that they are not one-size-fits-all,” says Amber Jones, Certified Mortgage Advisor. “We can look at your goals and finances and then match you to the program that helps you most, whether that means forgiveness, flexibility, or lower upfront costs.”

Cons:

• Interest rates are usually a little higher compared to loans without down payment assistance

• Repayable programs add a second loan and monthly payment

• Income limits apply to Elevate and the forgivable version of Aurora

Which Program Is Right for You?

Here is a simple breakdown based on common buyer situations:

Down payment assistance programs are not just for low-income buyers. They are also powerful tools for buyers with strong incomes who want to bridge the gap between their earnings and their savings.

“Every buyer’s situation is unique. The best choice depends on your credit, income, and long-term goals. My job is to guide you toward the right solution, whether that includes down payment assistance or another strategy,” says Amber Jones.

Frequently Asked Questions

Do I have to be a first-time homebuyer?
No. All three programs are open to both first-time and repeat buyers.

What is a non-occupant co-borrower and why does it help?
It is someone, such as a parent or relative, who helps you qualify for the loan but does not live in the home. All three programs allow this option.

What happens if I sell or refinance before the assistance is forgiven?
In most cases, you would need to repay the assistance. The exact terms depend on the program.

Can I combine assistance with my own savings?
Yes. Each of these programs allows you to add your own funds to increase your down payment.

Is there a downside to using down payment assistance?
The main trade-off is usually a slightly higher interest rate. With repayable programs, there is also the additional monthly payment from the second loan.

Ready to Explore Your Options?

If you are earning a solid income but short on savings, down payment assistance programs like Boost, Elevate, and Aurora could help you take the next step toward homeownership in 2025.

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