Down Payment Assistance Programs: What's Available and Who Qualifies
Down payment assistance (DPA) programs help eligible buyers cover part or all of a down payment, and sometimes closing costs, through grants, low-interest loans, or forgivable loans. They're more widely available than many buyers assume, and eligibility isn't limited to only the lowest income brackets in every case. Common types of assistance Grants — funds that generally don't need to be repaid, often the most attractive form of assistance when available, though they may come with restrictions like a minimum occupancy period. Forgivable second loans — a loan is technically taken on for the assistance amount, but it's forgiven over time (commonly 5-10 years) as long as the buyer stays in the home and meets program conditions, avoiding repayment if requirements are met. Deferred-payment second loans — no monthly payment is due on the assistance amount, but it's repaid later, often when the home is sold, refinanced, or the primary mortgage is paid off. Lo...