How Down Payment Assistance Can Help
Down payment assistance (DPA) programs are designed to help home buyers with some of the cash needed to buy a home. Assistance can come from:
- State or local housing agencies
- City and county programs
- Employer or non-profit programs
- Lender-linked assistance options
Some programs focus on first-time buyers, while others are open to buyers who have owned a home before.
Common Types of DPA
While each program has its own rules, many fall into a few basic categories:
- Grants: Funds that do not need to be repaid if program rules are met.
- Forgivable loans: Assistance that is forgiven over time if you stay in the home.
- Deferred loans: Payments are delayed until you sell or refinance.
- Repayable assistance: Additional loan with a set repayment schedule.
You can see sample structures on the DPA program types page.
Typical Eligibility Factors
Each program sets its own eligibility rules. Common factors may include:
- Income limits for your household size and area
- Maximum purchase price limits
- Occupying the home as your primary residence
- Homebuyer education course completion
- Minimum credit score requirements
Connecting DPA With Your Mortgage Plan
Down payment assistance usually works together with a first mortgage such as FHA, conventional, VA or USDA. The goal is to help with cash-to-close while still keeping the ongoing payment manageable.
A written plan can show:
- How much assistance might be realistic in your case.
- How the assistance affects your cash to close.
- How the assistance affects your monthly payment.