Down Payment Assistance

First-time buyers and low-to-moderate income

Grants, forgivable loans, and community programs that make homeownership accessible. We research available programs that may help reduce your out-of-pocket costs.

Program Overview

How Down Payment Assistance Loans Work

Down Payment Assistance (DPA) programs provide grants, forgivable loans, and subsidized second mortgages to help eligible buyers cover their down payment and closing costs. These programs exist at the federal, state, county, and city levels, and new programs are introduced regularly.

DPA programs vary significantly by location and eligibility criteria. Some are income-restricted, targeting low-to-moderate income households. Others are restricted by profession (teachers, first responders, healthcare workers). Many require the buyer to be a first-time homebuyer, defined in most programs as someone who has not owned a home in the past three years.

The most common DPA structures include outright grants (free money that never needs to be repaid), forgivable second mortgages (loans that are forgiven after a set period, typically 3 to 10 years of continuous residence), and deferred-payment second mortgages (no monthly payment required, repaid when you sell, refinance, or pay off the first mortgage).

DPA can be combined with FHA, VA, conventional, and USDA first mortgage programs. This stacking ability means a buyer could, for example, use an FHA loan with 3.5% down and receive a grant covering that entire 3.5%, potentially purchasing with little to no out-of-pocket down payment, depending on the program.

Key Features

Grants up to 5% of the purchase price in some programs
Forgivable second mortgages (forgiven after 3-10 years of ownership)
Compatible with FHA, VA, Conventional, and USDA loans
Can cover both down payment and closing costs
Available in most states and many counties/cities
Income and purchase price limits apply (vary by program)

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The Process

How It Works

Eligibility Screening

We review your income, purchase area, homebuyer status, and profession to identify every DPA program you may qualify for. Many buyers are eligible for programs they have never heard of.

Program Selection and Pre-Approval

We match you with the best combination of first mortgage and DPA program, then issue a pre-approval that reflects the full benefit. Your offer is presented as fully financed.

Homebuyer Education (if required)

Many DPA programs require completion of a HUD-approved homebuyer education course. These are typically available online and take a few hours to complete.

Close with Reduced Out-of-Pocket Costs

At closing, your DPA funds are applied to your down payment and/or closing costs, significantly reducing the cash you need to bring to the table.

Ideal Borrower

Who This Program Is For

DPA programs are designed for buyers who have the income to support a mortgage payment but have not been able to accumulate a large down payment.

First-time homebuyers (no ownership in the past 3 years)

Low-to-moderate income families in qualifying areas

Teachers, first responders, nurses, and other eligible professions

Buyers in targeted census tracts (income limits may be higher or waived)

Recent graduates or younger buyers entering the housing market

Run the Numbers

Use our calculator to explore payment scenarios, compare options, and see how a down payment assistance loan could fit your financial plan.

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Common Questions

Down Payment Assistance FAQ

Most DPA programs define 'first-time homebuyer' as someone who has not owned a home in the past three years. Some programs have no first-time buyer requirement at all, particularly those targeting specific professions or geographic areas. We review all available options for your situation.

It depends on the program. True grants do not need to be repaid. Forgivable second mortgages are forgiven after a set period (usually 3-10 years) as long as you remain in the home. Deferred-payment loans are repaid when you sell, refinance, or pay off the mortgage. We explain all terms before you commit.

Most DPA programs can be paired with FHA, conventional, VA, or USDA first mortgages. Some programs are specific to a particular loan type. We match you with the best available combination for your situation.

No. DPA funds are committed during your pre-approval process and appear as part of your financing package. Sellers see a fully funded offer. DPA is part of your financing and does not typically weaken your offer in the seller's eyes.

Ready to Explore Down Payment Assistance Loans?

Let our team walk you through the details, run the numbers for your situation, and help you decide if this is the right program for your goals.

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