Common questionCommon question
What is recapture tax on down payment assistance?
Short answer
Recapture is a federal provision that can apply when a home bought with mortgage-revenue-bond financing is sold within nine years, and 249 of the 2,700-plus programs in the catalog carry a recapture provision. They are recorded in 46 states and territories.
By the numbers
programs with a recapture provision
- States and territoriesStates and territories with one
- 46
- Open nationwideOpen nationwide
- 0
- Grants or forgivableGrants or forgivable loans
- 96
- Deferred second loansDeferred second loans
- 82
- Ask for a homebuyer classAsk for a homebuyer class
- 216
- No first-time ruleNo first-time requirement
- 47
Hey Prescott catalog of 2,000+ programs. Types are as each program record labels them.
What to know
It applies only where all three conditions are met at sale — the sale happens within nine years, the home sells at a gain, and the seller’s income has risen above a published threshold. Many state agencies reimburse borrowers who do owe it. Recapture is a tax matter, and a tax professional is the right person to ask about any particular situation.
Near you
See programs where you’re buying
Start with a ZIP code, then a few short questions to see every program that matches your answers. No SSN, no credit pull.
State by state
Programs with a recapture provision.46 states and territories have at least one. Each links to that state’s full directory.
| State | Programs with a recapture provision |
|---|---|
| Maryland | 26 |
| Virginia | 22 |
| New York | 16 |
| Massachusetts | 15 |
| Connecticut | 14 |
| Illinois | 10 |
| Pennsylvania | 8 |
| California | 7 |
| South Carolina | 7 |
| Louisiana | 6 |
Questions, answered
Where do these numbers come from?
Hey Prescott maintains a catalog of 2,000+ active down payment assistance programs across all 50 states and DC, each verified against the administering agency’s own published material and carrying the date it was last checked. The counts on this page are drawn from that catalog and refresh as it does.
Is Hey Prescott a lender?
No. Hey Prescott is an educational directory of down payment assistance programs. We list programs and link to official sources; we do not make loans or give individualized lending advice.