How to tell a real assistance program from a scam

Questions buyers ask about this

Should I ever pay a fee to apply for down payment assistance?

No. Legitimate programs do not charge for access to funds. Real costs, such as a homebuyer education course fee or an administrator's document fee, are disclosed in the program guide and are not payments to unlock money.

How do I verify a down payment assistance program is real?

Find it on the administering agency's own website, read the written repayment terms, look up the company arranging your mortgage on NMLS Consumer Access, and confirm with a HUD-approved housing counselling agency, which costs nothing.

Can a seller provide my down payment assistance?

No. Assistance funded directly or indirectly by the seller is not permitted on government-insured loans, which is why legitimate programs are administered by agencies, governments, Federal Home Loan Banks or lenders rather than transaction parties.

Should I ever pay a fee to find down payment assistance?

No. Program information is published free by housing finance agencies and HUD, and legitimate assistance is applied for through a participating lender. An upfront fee to 'secure' or 'reserve' a grant is the clearest warning sign there is.

How can I tell an official program page from a lookalike?

Official state agency and municipal pages sit on government or agency domains and publish dated program guides with limits tables. Lookalikes lead with a lead-capture form, avoid naming the administering agency, and rarely publish an effective date.

Is a program that guarantees approval legitimate?

No. No one can guarantee approval before underwriting your income, credit, property and program eligibility. Guaranteed-approval language is a marketing claim, not an underwriting outcome.

What about 'free money from the government' advertising?

Treat it as a red flag. Most assistance is a lien with conditions, not a gift, and even true grants carry occupancy and eligibility strings. Anyone describing assistance as free money is not describing the note you would sign.

Is it a problem if someone asks me to misstate my income or occupancy?

It is mortgage fraud, and the certification you sign says so. Walk away immediately, and report it to the administering agency and to your state regulator.

How do I verify that a lender actually participates in a program?

Housing finance agencies publish participating lender lists. Check the lender's NMLS record at nmlsconsumeraccess.org as well, and confirm the loan officer's individual licence covers your state.

What should I do if I think I have been targeted?

Stop sending money and documents, keep every message, and contact the administering agency, your state mortgage regulator and the Consumer Financial Protection Bureau. Identity documents already sent should be followed with a credit freeze.