DOWN PAYMENT ASSISTANCE
Buying a home may require less upfront than you think. Down payment assistance programs may help eligible buyers cover certain upfront costs. Programs, availability, and eligibility vary, so it's worth exploring what options may fit your situation.
WHAT IS DOWN PAYMENT ASSISTANCE?
Down payment assistance refers to programs that may help eligible homebuyers with certain upfront costs of purchasing a home, such as part of the down payment or closing costs.
These programs can come from a variety of sources, including state and local housing agencies, nonprofit organizations, and certain loan programs. Each one sets its own rules for who may qualify and how the assistance works.
WHY ELIGIBILITY VARIES
Down payment assistance eligibility depends on a combination of factors, and this list is not exhaustive. Requirements vary by program.
Household Income & Circumstances
Many programs consider household income, household size, and other personal circumstances when determining eligibility.
Property Location & Purchase Price
Where a home is located and its purchase price can affect which programs apply and how much assistance may be available.
Loan Type & Occupancy Requirements
The type of loan used and whether the home will be the buyer's primary residence are often part of a program's requirements.
Lender Guidelines & Program Funding
Each lender and program sets its own guidelines, and available program funding can change or run out. Requirements vary by program.
COMMON DPA QUESTIONS
Do I have to be a first-time homebuyer?
Not always. While some programs are designed for first-time buyers, others are open to repeat buyers as well. Requirements vary by program.
Does down payment assistance mean I won't need any money at closing?
Can DPA be used with different loan types?
Does using assistance affect my mortgage?
Are there income limits?
Can assistance programs change or run out of funding?
How do I find out what options may be available to me?
UNDERSTAND THE FULL PICTURE
Down payment assistance is only one part of the equation. Before moving forward, it helps to understand the complete financial picture.
Monthly Payment & Interest Rate
Your expected monthly payment depends on your loan amount, interest rate, and loan term. Down payment assistance can reduce how much you need upfront, but it does not change your interest rate or how your monthly payment is calculated.
Cash to Close & Loan Structure
Estimated cash to close typically includes your down payment, closing costs, and prepaid items. Loan structure refers to how your primary mortgage and any assistance funds work together, since assistance is often set up as a second loan or grant layered on top of your main financing.
Taxes, Insurance & HOA
Property taxes and homeowners insurance are typically included in your monthly payment, and HOA dues (if applicable) are often billed separately. These costs are part of your overall budget regardless of whether you receive assistance.
Repayment, Forgiveness & Occupancy Conditions
Down payment assistance can come with its own conditions, such as repayment terms, a forgiveness schedule over time, or a requirement that you occupy the home as your primary residence. These conditions are not the same across all programs, so it's worth reviewing them carefully.