Free money for qualified buyers
For many buyers, the hardest part of buying a home isn’t qualifying—it’s saving for the down payment. That’s where Down Payment Assistance (DPA) programs come in. These programs help eligible buyers cover upfront costs, sometimes with little to no repayment required.
Here’s how DPA works, what types exist, and how buyers qualify.
What Is Down Payment Assistance (DPA)?
Down Payment Assistance refers to programs—often offered by state, county, or local housing agencies—that help buyers fund:
- Down payments
- Closing costs
- Or both
DPA programs exist to expand access to homeownership, especially for first-time and moderate-income buyers.
Types of Down Payment Assistance
1. Grants
- True “free money”
- No repayment required
- Often paired with income limits and purchase caps
2. Forgivable Loans
- Loan balance is forgiven after a set period (e.g., 5–10 years)
- No monthly payment
- Encourages long-term homeownership
3. Deferred or Low-Interest Loans
- Payment may be delayed until sale or refinance
- Often very low interest
- Used when grants aren’t available
Who Typically Qualifies?
While programs vary by location, many buyers qualify if they:
- Are first-time buyers (or haven’t owned in 3 years)
- Meet household income limits
- Buy a primary residence
- Complete a homebuyer education course
Some programs are available to repeat buyers as well—this is often overlooked.
What DPA Can (and Can’t) Do
DPA Can Help You:
- Buy sooner
- Reduce upfront cash needed
- Preserve savings
- Access better loan options
DPA Limitations to Know:
- Income or purchase-price caps
- Restricted geographic areas
- Program funds may be limited or seasonal
Used correctly, DPA can be a game-changer.
How Affinity Home Lending Helps Buyers Use DPA Smartly
We help buyers:
- Identify available DPA programs
- Confirm eligibility early
- Compare DPA vs. non-DPA loan options
- Structure approvals for speed and accuracy
- Avoid last-minute surprises
Down payment assistance isn’t complicated—it just needs to be planned correctly.