Down Payment Assistance Program
Down Payment Assistance Program Types
Down Payment Grants
Down payment grants are like free money that helps you buy a home. These grants, called Down Payment Assistance (DPA) programs, are often available in your local area, and you can search for DPA programs by state or view national DPA programs available.
Some of these programs will match the money you save, meaning they will add extra money to what you’ve already saved. For example, if you save $1, they might give you an extra $1, $2, $3, or even $4 for every dollar you save. This continues until you’ve saved enough for up to 20% of the home’s price.
The best part? Most of these grants don’t need to be paid back as long as you follow the rules. It’s free money to help you get closer to owning a home!
Second Mortgage
One way to get help with your down payment is by taking out a second mortgage. It’s not as bad as it sounds.
Here’s how it works: some of these loans let you delay payments until you sell or refinance your home. Others might not require you to pay anything back if you live in the home for a certain number of years.
The best part? Many second mortgages for down payment assistance come with low or no interest. So, if you plan to stay in your home for a while, this could be a good option to consider!
How much can qualified home buyer receive in Down Payment Assistance?
DPA programs vary by location, but qualified home buyers could be in line for thousands of dollars in down payment assistance if they qualify. Qualified buyers can receive anywhere from $5,000 to close to $35,000 toward their down payment and/or closing cost assistance.
How do People Qualify for Down Payment Assistance?
There are over 2,000 programs so not all programs are the same and not everyone qualifies. Here are some common things you’ll need to qualify for most down payment assistance programs:
- Be a first-time buyer: Even if you’ve owned a home before, you can still qualify as a first-time buyer if you haven’t owned a home in the last three years.
- Have low to middle income: These programs are usually for people who don’t make a lot of money.
- Live in the home: The home must be your main place to live, and it has to be in an area that qualifies for the program.
- Work with a qualifying lender: You’ll need to choose the right type of loan and work with a lender approved by the program.