Down Payment Assistance for Green Card Holders: State-by-State Basics

Quick answer (updated October 2026): Down payment assistance for green card holders is widely available because most state programs accept permanent residents, either directly or by following the underlying FHA, VA, USDA or conventional loan rules. Each program sets its own income limits, purchase price caps and first-time buyer rules. Non-permanent residents face far fewer options since FHA and USDA closed to them in 2025.

You finally have your green card, you're tired of paying rent in Houston or Atlanta or Sacramento, and you've saved, but not the 20% your parents insist is "proper." Down payment assistance (DPA) can close that gap, and permanent residents qualify for far more programs than most people realize.

This guide explains how DPA programs decide eligibility, the types of assistance, state basics, how to apply, and what changed for visa holders.

How DPA programs decide residency eligibility

There's no single federal DPA rule. Most programs are run by state or local housing finance agencies (HFAs), and each writes its own guidelines. In practice, residency eligibility usually comes from one of two places:

1. The program's own rule. Some programs state eligibility directly. For example, CalHFA's conventional program handbook requires each borrower to be a US citizen or national, or a "qualified alien" as defined in federal law (8 U.S.C. §1641). Lawful permanent residents are qualified aliens.

2. The underlying loan's rule. Others defer to the first mortgage. The Texas State Affordable Housing Corporation (TSAHC), for instance, tells lenders to follow the guidelines of the loan type being used (FHA, VA, USDA, Fannie Mae or Freddie Mac) for non-citizen borrowers.

For green card holders, both paths usually lead to "eligible":

First mortgage paired with DPA	Green card holder eligible?	H-1B/L-1/EAD-only eligible?
FHA	Yes	No, since HUD Mortgagee Letter 2025-09
USDA guaranteed	Yes (qualified alien)	No, since March 18, 2025
VA	Depends on veteran status	Depends on veteran status
Conventional (Fannie Mae/Freddie Mac HFA products)	Yes	Agency rules allow it; program and lender rules decide

That last row is the opening for visa holders. Conventional-based DPA can work for non-permanent residents if the specific program doesn't add its own citizenship requirement. Many do, so check before applying. For the broader picture of options without FHA, see FHA alternatives for visa holders in 2026.

Types of first time buyer grants and DPA for immigrants

"Grant" gets used loosely. Read the terms, because these are different products:

Type	How it works	What to watch
True grant	Funds you never repay	Often limited funding; may have occupancy requirements
Forgivable second loan	Forgiven over a set period if you stay and don't refinance or sell	Selling or refinancing early can trigger repayment
Deferred second loan	No payments; repaid when you sell, refinance or pay off the first	Reduces equity at sale
Repayable second loan	Monthly payment, usually small	Counts in your DTI
Rate-based assistance	Assistance funded through a slightly higher first mortgage rate	Compare total cost against no-DPA options

A useful habit: ask what happens if you refinance in three years. If rates fall, a forgivable second that becomes due on refinance can change the math.

DPA basics for permanent residents in key states

Programs change funding and terms often. The table below names major state agencies and what we confirmed about non-citizen eligibility as of October 2026. Where we haven't verified a rule, check the program guide or ask us.

State	Major state program administrator	Non-citizen eligibility (as of October 2026)
Texas	TSAHC (Homes for Texas Heroes, Home Sweet Texas); TDHCA	TSAHC: follow the underlying loan's guidelines; Home Sweet Texas has no Texas-residency requirement
California	CalHFA	Citizen, national, or qualified alien (green card holders qualify)
Georgia	Georgia Department of Community Affairs (Georgia Dream)	Check current program guide
New Jersey	NJ Housing and Mortgage Finance Agency	Check current program guide
North Carolina	NC Housing Finance Agency	Check current program guide
Washington	Washington State Housing Finance Commission	Check current program guide
New York	State of New York Mortgage Agency (SONYMA)	Check current program guide

Many cities and counties also run their own DPA, often with different income limits. Ask your loan officer which local programs are funded right now.

Talk to a loan officer who's seen this before: Tell us your state, county and household income and we'll match you to DPA programs you actually qualify for, with a two-minute pre-approval check. Book a call.

A worked example: FHA with DPA for a new green card holder

Here's a hypothetical illustration. The DPA terms are illustrative and not any specific program. Payment uses the Freddie Mac weekly average, Oct 15, 2026 (30-year fixed 7.40%) — illustration only, not a quote or offer; FHA rates, mortgage insurance and taxes differ and are excluded.

Say Farhana, a green card holder in Houston, buys a $350,000 home with FHA. Minimum down payment is 3.5%, or $12,250.

	Without DPA	With hypothetical 3.5% deferred DPA
Down payment from own funds	$12,250	$0
DPA second lien	$0	$12,250 (no monthly payment)
Base FHA loan	$337,750	$337,750
Monthly P&I on first loan	$2,339	$2,339
Cash left for closing costs and reserves	Lower	$12,250 more

The payment on the first loan doesn't change. What changes is how much of her savings stays in the bank. Our guide to FHA loans for green card holders in 2026 covers the FHA side in detail, including conditional cards.

Visa holder down payment assistance: what's realistic

If you're on an H-1B, L-1, O-1 or EAD:

• FHA- and USDA-paired DPA is out. Non-permanent residents lost FHA eligibility for case numbers on or after May 25, 2025, and USDA eligibility on March 18, 2025.

• Conventional-based DPA may be possible if the program itself doesn't require citizenship or qualified-alien status.

• HomeReady and Home Possible offer low down payment conventional options with income limits. See HomeReady 3% down income limits for 2026.

• Gifts from family, including parents in India, remain a common alternative to DPA.

Mixed-status couples: if one spouse has a green card and the other is on an H-4 or H-1B, program rules on who must be eligible vary. Some only care about borrowers on the loan. Ask before you structure the application.

Conditional green card holders are lawful permanent residents under immigration law and are generally treated as permanent residents by lenders; confirm with the lender and program. See our guide to conditional green card mortgages.

How to apply for DPA as a permanent resident

1. Check income and price limits for your county. Most programs cap both.

2. Confirm first-time buyer status. Many programs define it as not owning a home in the past three years; ask whether property you own abroad counts.

3. Complete homebuyer education if required. Many programs accept online courses.

4. Use a participating lender. DPA is delivered through approved lenders only.

5. Reserve funds early. Program funding can run out.

6. Bring your green card (front and back) and SSN documentation.

What the rules actually say

• CalHFA conventional program handbook: each borrower must be a US citizen or national, or a qualified alien under 8 U.S.C. §1641. As of October 2026.

• TSAHC Lender Guidelines 2.6: non-US citizen borrowers follow the underlying loan type's guidelines; Home Sweet Texas has no residency requirement.

• HUD Mortgagee Letter 2025-09: non-permanent residents ineligible for FHA for case numbers on or after May 25, 2025; lawful permanent residents remain eligible.

• USDA guaranteed loans: since March 18, 2025, applicants must be US citizens, non-citizen nationals or qualified aliens.

Frequently Asked Questions

Q: Can green card holders get down payment assistance?
A: Yes. Most state and local DPA programs accept lawful permanent residents, either by naming them as eligible or by following FHA, USDA or conventional loan rules, all of which allow green card holders. Income limits, price caps and first-time buyer rules still apply.

Q: Can H-1B visa holders get down payment assistance?
A: It's harder. FHA- and USDA-paired programs are no longer available to non-permanent residents. Some conventional-based DPA programs may still work if the program doesn't require citizenship or qualified-alien status. Each program's guide decides, so check before applying.

Q: Do I have to repay down payment assistance?
A: It depends on the program. True grants aren't repaid. Forgivable seconds are forgiven over time if you stay. Deferred seconds are repaid when you sell or refinance. Repayable seconds have a monthly payment that counts in your DTI.

Q: Does owning a home in India affect first-time buyer status?
A: It might. Many programs define a first-time buyer as someone who hasn't owned a home in the past three years, and some count property owned anywhere. Ask the program or your loan officer before you apply, and disclose foreign property accurately.

Q: Can I combine DPA with a gift from my parents?
A: Often, yes. Many programs allow family gifts alongside assistance, but the gift must be documented and the funds must reach a US account before closing. Program rules on combining sources vary, so confirm with your lender.

Get matched to the DPA programs you qualify for

Send us your state, county, household income, and immigration status for each borrower. We'll run a two-minute pre-approval check, identify which DPA programs are funded and open to you, and compare them against no-DPA options across our 150+ wholesale lenders so you see the true cost of each. We're licensed nationwide and work with green card holders and mixed-status families every week. Book a free 15-minute call at /contact, start your application at /apply, or call 713-366-4668.

Masala Loans is a brand of Matador Lending, LLC (NMLS #2072896). Written by Apurva Sanghavi, President, NMLS #227127. Equal Housing Opportunity. This article is general education, not tax, legal or immigration advice — consult a qualified CPA, attorney or immigration lawyer for your situation. Program availability, rates and terms vary by lender and borrower and are subject to change; not a commitment to lend.