If saving for a down-payment feels like the biggest hurdle between you and buying a home, you’re not alone. But here’s the good news: there are programs designed to help and you may qualify for without even realizing it! Down-Payment Assistance (DPA) programs are initiatives offered by various organizations, including government agencies and non-profits, to provide financial aid to homebuyers. These programs often help buyers purchase a home sooner than expected!
What Is Down-Payment Assistance?
Down-payment assistance (DPA) is financial support that helps cover the upfront cost of buying a home, specifically the down payment and/or closing costs. These programs are often offered by:
- State and local housing agencies
- Nonprofit organizations
- Employers
- Lenders working with specific builder partnerships
This financial support can come in a few different forms, such as:
- Grants: No repayment required
- Forgivable loans: Loans that are forgiven after a certain period (as long as you meet the terms)
- Deferred loans: Loans you repay only when you sell or refinance
- Matched savings programs: You save a certain amount, and the program matches it
Who Qualifies for Down-Payment Assistance?
Eligibility will vary, but many programs are designed for:
- First-time homebuyers
- Buyers within certain income limits
- Those purchasing in specific areas
Tip: You don’t always have to be a true “first-time” buyer to qualify. Some programs define “first-time” as not having owned a home in the past three years.
How to Find Down-Payment Assistance Programs
These down-payment assistance programs can be offered by state housing agencies, local governments, nonprofits, or even your lender. To find a program that fits your situation, start by checking with your Loan Team. They can guide you to options available in your area and help you understand eligibility requirements. You can also explore resources like HUD.gov or your state’s housing finance authority for more details.
You don’t have to buy a home all on your own! Down-payment assistance programs are here to help make homeownership possible — and maybe even sooner than you thought!
