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