Less Upfront. More Possibility.
Down payment assistance programs may help eligible homebuyers reduce one of the biggest barriers to homeownership by providing funds toward down payment and, with certain programs, closing costs.
What Is Down Payment Assistance?
Down payment assistance, commonly called DPA, refers to programs designed to help eligible homebuyers with some of the upfront costs of purchasing a home.
Depending on the program, assistance may be structured as a grant, forgivable second mortgage, deferred or zero interest second mortgage, or repayable second mortgage. Funds may be available to help with the down payment and, with certain programs, eligible closing costs.
DPA programs can often be paired with eligible first mortgage financing. Program availability, assistance amounts, income limits, credit requirements, property requirements, repayment terms, and other eligibility guidelines vary.
And down payment assistance is not necessarily limited to first time homebuyers. Certain programs may also be available to eligible repeat buyers purchasing a new primary residence.
At a Glance
| Assistance | May help with down payment and eligible closing costs |
| Program Types | Grants, forgivable loans, deferred loans, and repayable second mortgages may be available |
| First Time Buyer | Not always required; certain programs may allow eligible repeat buyers |
| Loan Programs | Options may be available with FHA, Conventional, USDA, VA, or other eligible financing |
| Repayment | Varies by program and assistance structure |
Could Down Payment Assistance Help You?
Down payment assistance may be worth exploring if you:
- Have the income to manage a mortgage payment but need help with upfront homebuying costs
- Have limited savings available for your down payment
- Want to preserve more of your savings after purchasing a home
- Are a first time homebuyer looking for available assistance programs
- Are a repeat buyer and want to explore programs that may not require first time homebuyer status
Important Considerations
Not All Assistance Is the Same
Down payment assistance can take several forms. Some programs provide grants that do not require repayment, while others use a second mortgage that may be forgivable, deferred, interest free, or repayable. Understanding how the assistance is structured is an important part of comparing your options.
Forgiveness May Have Conditions
Forgivable assistance does not necessarily disappear immediately. Some programs require the borrower to remain in the home for a specified period or satisfy other requirements before the assistance is fully forgiven. Selling or refinancing earlier may trigger repayment under certain programs.
Eligibility Varies
Credit, income, property location, occupancy, household size, purchase price, first mortgage program, and other factors may affect eligibility. Some programs also have limited funding or geographic restrictions.
DPA Works With Your First Mortgage
Down payment assistance is generally used alongside an eligible first mortgage rather than as a replacement for one. Depending on the program, assistance may be compatible with FHA, Conventional, USDA, VA, or other qualifying financing.
Explore Related Loan Programs
Conventional Loans
Flexible mortgage financing with low down payment options for qualified borrowers, including programs that may be paired with eligible assistance.
LEARN MOREFHA Loans
Government backed financing with lower down payment options and flexible qualification guidelines that may be compatible with eligible assistance programs.
LEARN MOREHome Possible
A conventional mortgage option designed to expand access to homeownership for eligible borrowers through flexible, low down payment financing.
LEARN MOREUSDA Loans
Government backed financing for eligible borrowers and properties that may provide a path to homeownership without a traditional down payment.
LEARN MORECommon Questions About Down Payment Assistance
Down payment assistance refers to programs that may provide eligible homebuyers with funds to help cover a down payment and, depending on the program, eligible closing costs.
Not necessarily. Some assistance programs are specifically designed for first time homebuyers, while others may also be available to eligible repeat buyers. Requirements vary by program.
It depends on the program. Assistance may be provided as a grant requiring no repayment, a forgivable second mortgage, a deferred loan, or a repayable second mortgage. Always review the specific repayment and forgiveness requirements before selecting a program.
Certain programs may allow assistance funds to be applied toward eligible closing costs in addition to the down payment. How funds can be used depends on the individual program.
See What Options May Work for You
Down payment assistance programs are subject to availability, funding, geographic restrictions, income limits, credit requirements, property requirements, and other eligibility guidelines. Assistance amounts, repayment terms, and program requirements vary. Not all applicants will qualify. Program terms are subject to change or discontinuation without notice. Contact Premier Point Mortgage for current program availability and eligibility requirements.
