The Quick Read: Usually, yes, but not in every shape and not in every state. FHA has no income ceiling, and the forgivable and repayable second-lien options carry no income limit of their own. The grant option does have an income test, though several categories bypass it. Lendmire is licensed for consumer lending in 16 states, so “any state” is a real boundary, not a figure of speech.
Why Does Income Even Matter Here?
Two separate income tests can apply to one purchase. The first mortgage has its own rules. The assistance has its own rules. Mixing them up is where most high earners talk themselves out of help they could use.
Start with the first mortgage. HUD’s FHA answer center says FHA programs typically have no maximum income limit. You still need enough income to carry the payment and your other debts. A big salary does not hurt you. It usually helps.
Now the assistance. Across the wholesale programs Lendmire places files with, the answer depends on which of four shapes you use. That is the whole game, so the rest of this piece walks through each one.
The Four Shapes, and Which Ones Test Income
| Shape | Income test? | Repay? | Credit floor |
|---|---|---|---|
| Grant | 140% of area median, or a category | Nothing to repay | 620 |
| Forgivable second | None (USDA’s own on USDA) | Forgiven after 36 or 60 payments | 640 |
| Repayable second | None (USDA’s own on USDA) | Yes, balloon in year 10 | 660 |
| Refinance-cost second | None | Yes, same terms as repayable | 660 |
All of this runs through wholesale lenders, subject to program guidelines and full underwriting. Blended scores can help on the second-lien options when a co-borrower has a lower score. Not a commitment to lend.
The structure matters more than the salary. A buyer earning well above the area median can skip the grant’s income test entirely by choosing a second lien, or by fitting a qualifying category.
How Does the Grant Treat a High Earner?
The grant option gives 2% or 3.5% of the purchase price toward the FHA minimum investment. Nothing to repay. It releases at closing with no lien, no payment and no interest. The first lien must be FHA.
Here’s the catch. Household income must be at or below 140% of the area median income, unless a qualifying category applies. For a high earner, the categories are the real door:
- First responders: police, fire, public safety, paramedics, EMTs, current, former or entering service.
- Educators.
- Medical personnel, including nurses, doctors, phlebotomists and hospital or Red Cross workers.
- Civil servants at the federal, state or local level.
- Military personnel, current, retired, volunteer or unpaid.
- First-time buyers, meaning no ownership interest in a residence in the three years before applying.
- Buyers purchasing in an underserved census tract.
A physician, a teacher married to a software engineer, a retired service member with a big pension: each can clear the test by category even when household income runs far above the cap. A homebuyer education course is required (you pay up front and the cost is credited back at closing). The grant is not offered in Washington.
If none of those fit and your household sits above 140% of area median, the grant is out. Move to a second lien.
What About the Forgivable and Repayable Seconds?
These are where a pure high earner usually lands. Neither carries an income limit, beyond USDA’s own cap if the first lien is USDA. Neither requires a first-time buyer. Repeat and move-up buyers qualify.
The forgivable second is 3.5% of the lesser of price or appraised value. No interest, no monthly payment. It is forgiven after the first 36 or 60 on-time first-lien payments, with no 90-day-or-worse delinquency. Credit floor is 640 (660 blended). It pairs with FHA, HUD-184 and USDA first liens, on one- to two-unit homes.
The repayable second is 3.5% or 5%. At 5%, it also covers closing costs and prepaid items (the 3.5% minimum investment plus 1.5% toward closing costs). This is a real loan. It is interest-bearing, carries a monthly payment, amortizes over 30 years and balloons in year 10. Credit floor is 660 (670 blended). High-balance first liens are allowed here, which matters in expensive counties. Manual underwriting is not.
The repayable second adds a payment that counts in your debt ratios. For a high earner that is often fine. For someone stretching, it is not. Picture a buyer who could easily write the check but would rather keep cash in reserve: the repayable second is a defensible trade. Picture a buyer with a strong salary and heavy debts: the forgivable one fits better, since it adds no payment.
And the Refinance-Cost Second?
This is the fourth shape, and it is for people who already own. It is a second lien that covers part of the closing costs on an FHA refinance of your primary home.
The amount runs from 1% to 3.5% of the lesser of your current first-lien balance or the appraised value. Combined loan-to-value can reach 104%. It works on an FHA 203(b) refinance of a one- to four-unit property, as long as one unit is owner-occupied. Credit floor is 660 (670 blended).
Two limits matter. It is never used on a streamline refinance. And it can’t refinance an existing assistance loan. Repayment terms match the repayable second: interest-bearing, a monthly payment, and a balloon in year 10. There is no income limit beyond USDA’s own, and USDA does not come into play on an FHA refinance.
For a high earner, this is a cash-preservation tool, not a purchase tool. If you already hold an FHA loan and refinancing makes sense, it can reduce what you bring to the table. Because it adds a second loan on top of the first, the combined leverage deserves a hard look before you accept it.
Does the First Mortgage Have Its Own Cap?
Yes for USDA, no for FHA and HUD-184. This is the exception people miss.
USDA’s guaranteed program caps income at 115% of median household income and requires you to live in the home as your primary residence. The test counts the household, so a non-borrowing adult’s income can matter. A forgivable or repayable second with no income limit of its own still inherits USDA’s cap when it sits on a USDA loan. Check USDA’s eligibility tool for your county rather than guessing.
FHA has no such ceiling. HUD-184 is the third lane. HUD’s own program materials list no maximum income limits for Section 184, but it is limited by who the borrower is (tribal members, tribes and tribally designated housing entities) and by lending area. Income is not the barrier there.
Under FHA, the minimum required investment is 3.5% of the lesser of price or appraised value. FHA also charges an upfront mortgage insurance premium, which can be financed, plus annual mortgage insurance. One-unit FHA loan limits for 2026 run from $541,287 to $1,249,125 depending on the county. A high earner in a pricey metro should check that county’s limit first. The grant has no high-balance first lien. The repayable second allows one.
Is It Available in Every State?
No. Be precise about this. Lendmire’s consumer lending license covers 16 states: Alabama, California, Colorado, Florida, Georgia, Indiana, Michigan, Montana, New Mexico, North Carolina, Ohio, Pennsylvania, Tennessee, Texas, Virginia and Washington. The grant option is not offered in Washington.
Outside those states, other public programs exist. Many cap income, and some add recapture periods. State and local housing finance agencies run their own, so terms differ by location. Industry research from the Urban Institute and Down Payment Resource shows that most assistance programs nationally set an income cap, but not all do. Assuming you earn too much is a bad bet. Checking each program is the better one.
What “No Income Limit” Really Means
It means no income test. It does not mean no cost, and it does not mean no rules.
- Owner-occupied primary residence only. No second homes, vacation homes or rentals. If you want help buying a rental, assistance is not the tool.
- Nothing stacks. No option combines with another assistance program. No mortgage credit certificate with the second liens.
- A second lien is a loan. Repayable means repayable, with its own disclosure and a balloon.
- Credit floors are higher than FHA’s baseline. FHA’s minimum can be reached at lower scores. The assistance options start at 620, 640 or 660, depending on the shape.
Whether a high earner should bother is a genuine judgment call. If you have the cash and want to keep it liquid, a forgivable second can preserve reserves at the cost of a longer commitment: leave early, and the unforgiven portion is a problem. If you would rather own the home free of any second lien, skip assistance and put your own money in. An HUD-approved housing counselor can give independent advice on whether a set of terms fits you.
If You’re Over the Limit: A Short Path
1. Check your category. A first responder, educator, medical worker, civil servant or service member may qualify for the grant despite income.
2. Check whether you’re a first-time buyer under the three-year definition. That is one more grant door.
3. Look at the second liens. No income limit, repeat buyers welcome.
4. Avoid USDA if household income exceeds 115% of the median. Use FHA instead.
5. Compare the repayment shape against your cash position, your debts and how long you plan to stay.
If you want to see the full menu, Lendmire’s down payment assistance programs page lays out how the options pair with each first lien.
Key Terms Defined
Area median income: The midpoint household income for a county, used to set program income caps.
Forgivable second: A second loan with no interest or payment that is erased after a set number of on-time first-lien payments.
Balloon: A lump sum due at a set point, in year 10 for the repayable second.
Blended score: A credit score that averages in a lower-scoring co-borrower under set conditions.
Underserved census tract: A neighborhood the program designates as eligible regardless of income.
Frequently Asked Questions
Can I make too much money for down payment assistance?
Only for some shapes. The grant option has a 140% of area median income test unless you fit a qualifying category. The forgivable and repayable seconds have no income limit, other than USDA’s cap on a USDA first lien. Eligibility is subject to lender guidelines and underwriting.
Do I have to be a first-time buyer?
No. Repeat and move-up buyers qualify for every option. The three-year first-time definition is only one of several categories that open the grant, so it is a door, not a requirement.
Can a high earner use assistance on a rental or second home?
No. Assistance is for an owner-occupied primary residence only. Second homes, vacation homes and rental properties are excluded.
Does the assistance count against my debt ratios?
The repayable second does, since it carries a monthly payment. The grant and forgivable second add no monthly payment. Your lender’s underwriting review decides how the file is treated.
Is a forgiven loan taxable?
Tax treatment can depend on your situation; buyers should speak with a qualified tax professional before relying on any deduction or credit.
If you are buying a primary home and want to see whether a down payment assistance option fits your file, Lendmire can help you compare the grant, forgivable and repayable structures alongside an FHA, USDA or HUD-184 first mortgage.
Investors who want the broader program framework can review how DSCR loans work.
About Lendmire
Lendmire, NMLS# 2371349, is a mortgage brokerage with consumer lending licenses in 16 states. Down payment assistance options are arranged alongside FHA, USDA and HUD-184 first liens through wholesale lending partners, and each application is reviewed individually by the lender. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
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References
1. HUD FHA Answer Center, “How can FHA help me buy a home?”
2. USDA Rural Development, Single Family Housing Guaranteed Loan Program
3. Urban Institute and Down Payment Resource chartbook
This article is part of Lendmire’s down payment assistance program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: How Much Down Payment Assistance Can You Get? · Down Payment Assistance vs Gift Funds From Family · Can A Repeat Buyer Get Down Payment Assistance On A Primary Home?
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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- Lendmire LLC · Firm NMLS# 2371349 · Verify firm licensure
Required disclosures. Lendmire (NMLS# 2371349) operates as a licensed mortgage broker, not a direct lender or depository. The discussion in this article is general in nature and should not be relied upon as financial, legal, or tax advice — every investment scenario is unique and should be reviewed by a qualified professional. Any loan inquiry is subject to lender underwriting, and this article is not a commitment to lend or a guarantee of approval. Mortgage rates, loan terms, and program guidelines vary by borrower, property, and state, and may change without notice. Equal Housing Opportunity. Verify licensure at NMLS Consumer Access.