Down Payment Assistance
What is Down Payment Assistance?
Down Payment Assistance (DPA) programs are designed to help first-time homebuyers, low-to-moderate income buyers, and eligible borrowers cover the upfront costs of purchasing a home. These programs provide grants, low-interest loans, or forgivable loans to reduce the financial burden of making a down payment.
How Does Down Payment Assistance Work?
DPA programs come in different forms, including:
✔ Grants – Free money that doesn’t need to be repaid.
✔ Low-Interest Loans – Helps cover the down payment and is repaid over time.
✔ Forgivable Loans – The loan is forgiven after a set period if you meet program requirements.
✔ Matched Savings Programs – Some programs match your savings to help with your down payment.
Income
Your income limits depend on your geographical area. Some areas do not have income limits.
Credit Score
Applicant should have the bank specified credit score beginning at 640 +
Who Qualifies for Down Payment Assistance?
Eligibility varies by program, but common requirements include:
✔ First-time homebuyer status (some programs allow repeat buyers).
✔ Income limits based on your area and household size.
✔ Minimum credit score requirements (varies by lender).
✔ Completion of a homebuyer education course.
✔ Buying a home in an eligible area.
Get rewarded for qualifying credit
Down Payment Assistance is available only to those with a credit score of 640 or higher.
Reduced Mortgage Insurance
Being able to qualify for the down payment assistance program can mean that you are eligible for having a reduce mortgage insurance.
Come In With Less Money Down
If you would like to use some of your saved money towards other amenities or repairs for your homes, using down payment assistance can help you hold onto your savings now.
