Down Payment Assistance Programs

Down Payment Assistance (DPA) programs are financial tools that help first-time (and sometimes repeat) homebuyers afford the down payment and closing costs on a home. These programs are typically offered by:

- State housing finance agencies
- City or county governments
- Nonprofit organizations
- Employer-assisted housing programs

**Types of DPA include:**

**Grants —** Free money that does not need to be repaid
**Forgivable Loans** — Loans forgiven after staying in the home for a certain number of years
**Deferred Payment Loans **— No payments until the home is sold or refinanced
**Matched Savings Programs **— Programs that match your savings toward a down payment

- First-time homebuyer status may be required
- Income limits based on Area Median Income (AMI)
- Purchase price limits apply
- Home must be a primary residence
- Completion of a HUD-approved homebuyer education course

- Reduce or eliminate your down payment
- Free up savings for moving, furniture, or emergency funds
- Improve your ability to qualify for a loan
- Combine with other programs like FHA, VA, or state-level assistance
- Grants and forgivable loans may not need to be repaid

- Find DPA programs in your state or city
- Contact a participating lender or housing agency
- Check income and purchase price eligibility
- Complete a homebuyer education course
- Submit an application with income and credit documents
- Apply assistance at closing to reduce your cash-to-close