Smart options for first-time buyers, growing families, and anyone who needs help covering upfront costs.
What Is Down Payment Assistance (DPA)?
Down Payment Assistance programs help homebuyers reduce or eliminate the upfront cash needed to purchase a home. These programs can cover:
- Part of your down payment
- Closing costs
- Prepaid taxes and insurance
- A combination of both
DPA makes homeownership accessible for buyers who qualify for FHA or Conventional Loans but need financial support to get over the starting line.
⭐ Key Types of Down Payment Assistance
1. Grants (Free Money)
- Do not need to be repaid
- Offered by state housing agencies, nonprofits, and local programs
- Ideal for first-time buyers and low-to-moderate income borrowers
2. Forgivable Loans
- 0% interest, no payments
- Forgiven after living in the home for a set period (typically 5–7 years)
3. Deferred Payment Loans
- Payments delayed until sale, refinance, or payoff
- Keeps upfront costs low
4. Low-Interest Assistance Loans
- Provides down payment funds at below-market rates
- Adds a small secondary payment
Each program has its own rules — we help you evaluate which ones match your situation.
🚀 See If You Qualify for Down Payment Assistance
Millions of dollars in DPA funds go unused each year.
You may qualify even if you think you don’t.
👉 Check Your Down Payment Assistance Eligibility »
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Who Qualifies for DPA?
You may qualify if you:
- Are a first-time buyer (hasn’t owned in 3+ years)
- Are a teacher, firefighter, healthcare worker, or public servant
- Meet income limits in your area
- Are purchasing a primary residence
- Use an FHA, Conventional, or VA loan
Even if your savings are limited, DPA can significantly reduce your upfront cash requirements.
How DPA Works with Loan Programs
FHA + DPA
- 3.5% down requirement can be partially or fully covered
- Gift funds + DPA allowed
- Very common for first-time buyers
Conventional 3% Down + DPA
- Many states offer 3%–5% grant programs
- A strong option for buyers with better credit
VA Loans + DPA
- VA requires $0 down, but DPA can cover closing costs
Learn about these base loan programs:
Examples of Down Payment Assistance
Example 1 — DPA Grant
| Item | Amount |
|---|---|
| Home Price | $300,000 |
| FHA Down Payment | $10,500 |
| DPA Grant | $7,500 |
| Remaining Out-of-Pocket | $3,000 |
Example 2 — Forgivable 2nd Loan
| Item | Amount |
|---|---|
| Home Price | $350,000 |
| 3% Conventional Down Payment | $10,500 |
| DPA Forgivable Loan | $10,000 |
| Out-of-Pocket | $500 |
DPA can make the difference between waiting and owning today.
Pros and Cons of Down Payment Assistance
| Pros | Cons |
|---|---|
| Lower upfront costs | Some programs have income limits |
| Grants may not need repayment | Some programs require longer occupancy |
| Helps first-time buyers enter market faster | Slightly higher interest rates for certain DPA types |
| Can pair with FHA/Conventional | Extra documentation |
We help you determine which programs are actually worth using.
Why Work With AskMortgageAuthority.com
You get:
- Access to multiple local and national DPA programs
- Clear guidance on income limits and qualification rules
- Side-by-side comparison of grants vs forgivable loans
- Exact calculation of how DPA affects your monthly payment
- Integration with FHA, Conventional, and first-time buyer programs
We simplify the DPA process so you can buy sooner and with less stress.
Start Your Journey With Less Money Up Front
You might qualify for thousands in assistance — and not even know it.
👉 See Your Down Payment Assistance Options »
Down Payment Assistance FAQs
Is down payment assistance free money?
Grants are, yes. Other DPA types may be forgivable or deferred.
Do I need perfect credit to get DPA?
No. Many DPA programs allow FHA-level credit scores (580+).
Can I combine DPA with FHA?
Absolutely — FHA + DPA is one of the most common paths for first-time buyers.
Does DPA slow down the loan process?
Not usually. Most programs integrate directly with lenders.
Can I get DPA if I’m not a first-time buyer?
Some programs allow returning buyers or specific professions.