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Buying a home is a major milestone—but for many, the biggest hurdle is saving enough for the down payment. That’s where a Down Payment Assistance (DPA) Loan Program can help.
DPA programs offer financial support to eligible homebuyers, typically in the form of a loan or grant to cover part or all of the down payment and sometimes closing costs. These programs are often offered by state or local housing agencies, nonprofits, or even employers.
How It Works
Down payment assistance may come as:
Grants (no repayment required)
Forgivable loans (forgiven after a set period)
Deferred loans (repaid when you sell or refinance)
Low-interest second mortgages
Who’s Eligible?
Eligibility varies by program, but generally includes:
First-time homebuyers (some define this as not owning a home in the past 3 years)
Income below a certain limit
Purchase of a primary residence
Completion of a homebuyer education course
Minimum credit score (often 620+)
Pros:
Makes buying a home more affordable
Reduces or eliminates down payment burden
Some loans are forgiven after a few years
Can be combined with other first-time buyer programs
Cons:
Not all loans are forgivable
May require repayment if you sell or refinance early
Adds complexity to the homebuying process
A Down Payment Assistance Loan Program can be a valuable stepping stone toward homeownership—especially if you're struggling to save. Check with local housing authorities to explore available options.
Get a free instant rate quote
Take a first step towards your dream home
Free & non binding
No documents required
No impact on credit score
No hidden costs
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