Down Payment Assistance for First Time Homebuyers

Purchase:

• 620 credit required
• No repayment or second lien
• May be combined with seller concession
• May be used with a renovation program
• First time homebuyer

Property Type:

• 1-4 unit primary residence
• Manufactured home
• FHA Approved Condos
• PUD’s

What Is Down Payment Assistance?

Down payment assistance (DPA) refers to a type of financial aid or support that helps individuals or families cover the initial upfront payment required when purchasing a home, typically referred to as the “down payment.” The down payment is a percentage of the total purchase price of the home that buyers need to pay out of their own funds. It is a significant hurdle for many people looking to buy a home, as it can be a substantial amount of money.

Down payment assistance for first time homebuyers is designed to alleviate this financial burden and make homeownership more accessible, especially for those who might not have enough savings to cover the down payment. The lender will provide the entire down payment of 3.5% with no repayment or second lien.

Is Down Payment Assistance Still Available?

Most lenders accept down payment assistance grants that are provided by the county or state of the property. Usually, they need to be approved and require a course that must be completed in order to receive the down payment assistance. Then you must find a lender that will accept the down payment assistance grant.

We offer down payment assistance directly from the lender. A minimum credit score of 620 is required, the income must be equal to or less than 140% of the state or county median income and the subject property must be located in an underserved census tract (Underserved Census Tract Look Up Tool). At minimum, the income and credit must meet FHA total score card or manual underwriting requirements.

DPA Advantage is designed to provide down payment assistance in the form of a grant equal to 2% or 3.5% of the home price on an eligible FHA purchase.