True down payment assistance comes in a few flavors, and some are much better deals than others. - The best version is a genuine grant, money that never has to be repaid. Real grant programs are rare and vary a lot by state: some states have a good one, plenty don't. - Next best is usually a forgivable second mortgage with a short forgiveness window, so the assistance effectively goes away after you've stayed in the home a while. - Below that sit bond-financed programs (California's CalHFA is the common example), which typically pair an above-market interest rate on the first mortgage with a second, sometimes third, lien on the home. The catch with those subordinate liens: they can complicate a future refinance, since a new lender has to agree to subordinate behind them. Most assistance programs also carry eligibility rules such as a minimum credit score (often around 640, though confirm the current requirement for the specific program). Before reaching for assistance, check whether you could cover the down payment yourself and use a lender or seller credit for closing costs. That route often leaves you with cleaner terms and no extra liens. We can help you compare the real all-in cost of assistance against that alternative.