Down Payment Assistance

Your Down Payment Doesn't Have to Stand Between You and Homeownership

For many homebuyers, the biggest challenge isn't making the monthly mortgage payment—it's coming up with the money needed for the down payment and closing costs.

Down payment assistance programs may help eligible buyers reduce the amount of money they need to bring to closing.

What Is Down Payment Assistance?

Down Payment Assistance, often called DPA, refers to programs designed to help qualified homebuyers with some of the upfront costs of purchasing a home.

Depending on the program, assistance may be provided as:

• A grant

• A forgivable second mortgage

• A deferred-payment second mortgage

• A repayable second mortgage

• Assistance toward down payment

• Assistance toward eligible closing costs

Programs, funding, repayment requirements, and eligibility vary.

You May Not Need 20% Down

One of the most common misconceptions about buying a home is that you need a 20% down payment.

Depending on the loan program and your qualifications, significantly smaller down payments may be available. When combined with an eligible down payment assistance program, homeownership may be closer than you think.

Who May Qualify?

Eligibility varies by program and may be based on factors such as:

• Household income

• Purchase price

• Property location

• Credit qualifications

• Primary-residence occupancy

• Loan program

• Homebuyer education requirements

• First-time homebuyer status

• Available program funding

Some programs are limited to first-time homebuyers, while others may also be available to repeat buyers.

What Does “First-Time Homebuyer” Mean?

You may be surprised to learn that you don't necessarily have to be purchasing your very first home.

For many mortgage and assistance programs, someone who has not owned a principal residence during the previous three years may qualify as a first-time homebuyer.

Program definitions can vary, so we'll verify the requirements for the specific assistance program being considered.

Down Payment Assistance & Your Mortgage

Down payment assistance is generally used together with an eligible first mortgage.

Depending on the program, that may include financing such as:

Conventional Loans
FHA Loans
VA Loans
USDA Loans

Not every assistance program works with every mortgage, which is why it's important to evaluate the first mortgage and the assistance program together.

Look at the Complete Financing Package

Down payment assistance can be valuable, but the amount of assistance isn't the only thing to consider.

We'll also look at:

• Interest rate

• Monthly mortgage payment

• Mortgage insurance

• Closing costs

• Cash required at closing

• Second-mortgage terms, if applicable

• Repayment or forgiveness requirements

• How long you expect to own the home

The goal is to determine whether using assistance makes sense for your overall financing strategy.

Start Before You Find the House

Don't wait until you've already made an offer to find out whether you may qualify for down payment assistance.

Reviewing your financing first can help determine:

• Your estimated purchasing power

• The loan programs you may qualify for

• Whether DPA programs may be available

• Your estimated cash needed to close

• Your estimated monthly housing payment

Let's See What May Be Available

Down payment assistance programs can change, and funding may be limited. I'll help you review the programs currently available and determine which options may fit your situation.

Let's explore your options.  Click here to get prequalified

Down payment assistance programs are subject to eligibility requirements, funding availability, loan-program guidelines, property requirements, and other restrictions. Program terms and availability are subject to change. Prequalification is not a commitment to lend.