What Is Down Payment Assistance?
Down Payment Assistance (DPA) programs are designed to help eligible homebuyers cover the upfront costs of purchasing a home. These programs can support buyers who may have stable income and credit but need help meeting the minimum down payment required by conventional or government-backed loans.
DPA can come in the form of grants, forgivable loans, or second mortgages with deferred payments. Depending on the program and your location, you may also benefit from lower interest rates, reduced mortgage insurance costs, or educational support to prepare you for homeownership.
Program Options and General Eligibility
Many DPA programs are available at the state or local level and may include:
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Assistance toward minimum down payments on FHA or conventional loans
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Zero-interest or deferred-payment second loans, repaid only when you sell or refinance
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Mortgage insurance and interest rate discounts for qualified borrowers
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Eligibility based on income limits, credit score, and completion of a homebuyer education course
Programs may be available for both first-time and repeat buyers. Minimum down payments and income thresholds vary by program, so it’s important to speak with a loan expert to explore what you qualify for.
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