Department of Housing and Urban Development Downpayment assistance. Highlighting June as National Homeownership Month, HUD has announced $161.5 million in downpayment funding for first-time homebuyers. The amount will be divided among 400 state and local governments this year to help cash-strapped homebuyers make a downpayment and pay closing costs on their first home. Properties that are eligible for downpayment assistance include 1-4 family homes, condominium units, cooperative units or manufactured housing. Funding also will