Down Payment Assistance (DPA)
Down Payment Assistance programs provide grants, forgivable loans, or low-interest seconds to help cover your down payment and closing costs. Hundreds of programs exist nationwide—we'll help you find the right one for your situation.
Program Details
Key Benefits
- Free grant money in many cases
- Lower cash needed to close
- Forgivable after 3-5 years typically
- Works with multiple loan types
- Special programs for essential workers
Program Tags
Who It's Best For
- First-time homebuyers with limited savings
- Low to moderate-income buyers
- Essential workers (teachers, nurses, first responders)
- Buyers in targeted communities or census tracts
- Those who can afford payments but struggle with down payment
Advantages
- Reduces or eliminates down payment requirement
- Some programs offer forgivable grants (never repay)
- Can be combined with FHA, conventional, VA, or USDA loans
- Multiple programs can sometimes be stacked
- Closing costs may also be covered
- Makes homeownership accessible sooner
Considerations
- •Income and purchase price limits apply
- •First-time buyer requirement for most programs
- •Homebuyer education required
- •May need to repay if you sell within 3-5 years
- •Process can add time to closing
- •Limited availability in some areas
Eligibility Requirements
- First-time buyer (no ownership in past 3 years)—some programs have exceptions
- Income within program limits (typically 80-120% AMI)
- Purchase price within program limits
- Property in eligible area (some programs are location-specific)
- Complete homebuyer education course (required by most programs)
Additional Requirements
- Meet underlying loan requirements (FHA, conventional, etc.)
- Complete approved homebuyer education course
- Occupy the home as primary residence
- May need to stay in home for minimum period (3-5 years) or repay assistance
- Income and asset documentation
Pro Tips
- DPA programs are often underutilized—ask specifically about programs in your state and county
- Many programs are 'forgivable'—stay in the home 3-5 years and you never repay
- Homebuyer education is usually required but takes only a few hours and costs $0-50
- First-time buyer often includes anyone who hasn't owned in 3 years—or in some cases displaced homemakers, veterans, or buyers in targeted areas
- Stack multiple programs when possible—some areas have city, county, AND state assistance
- Essential workers (teachers, nurses, firefighters) often have dedicated programs
- Non-first-time buyers may qualify for certain programs in targeted census tracts
Also Known As
Generally, someone who hasn't owned a home in the past 3 years. Many programs also include displaced homemakers, single parents who owned only with a spouse, and buyers purchasing in targeted areas—even if they've owned before.
It depends on the program. Grants never need to be repaid. Forgivable loans are forgiven after 3-5 years of homeownership. Deferred loans are repaid when you sell, refinance, or move. Repayable loans have monthly payments.
Most programs limit income to 80-120% of Area Median Income (AMI). For example, if AMI is $80,000, limits might be $64,000-$96,000 depending on the program. Limits vary by household size and location.
Most DPA programs work with FHA, conventional, and sometimes VA or USDA loans. Each program specifies which loan types are eligible. We'll match you with programs compatible with your best loan option.
Homebuyer education courses teach the buying process, budgeting, and homeownership responsibilities. Most take 4-8 hours and cost $0-75. They're required by most DPA programs and actually provide valuable information for first-time buyers.
Programs typically offer 3-5% of the purchase price, with some providing up to $10,000-$25,000 or more. Many programs also help with closing costs. We'll research all available programs to maximize your assistance.
Yes! Programs like Good Neighbor Next Door (HUD), Homes for Heroes, and state-specific programs offer additional assistance for teachers, nurses, police officers, firefighters, EMTs, and military personnel.
With forgivable loans, you'll typically repay a prorated amount if you sell or refinance before the forgiveness period ends. For example, if it's a 5-year forgivable loan and you sell after 3 years, you might repay 40% of the assistance.
Sometimes yes! In some areas, you can stack city, county, and state programs. There are also employer-assisted housing programs that can combine with government DPA. We'll research all available options for your situation.
DPA can add 1-2 weeks due to additional program approval requirements. Plan for 35-45 day closings. Some programs are faster than others—we'll set realistic expectations based on the specific programs you're using.
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Typical Documents
- Last 30 days of pay stubs or income docs
- Last 2 years W-2s or 1099s (as applicable)
- Most recent 2 months of bank statements
- Government-issued ID
Exact items vary by program and scenario.
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Information provided is for educational purposes only and is not a commitment to lend. All loans subject to underwriting approval. Rates and terms subject to change. Equal Housing Lender. Equal Housing Opportunity.