Down Payment Assistance (DPA) programs are typically offered at the state, county, or city level, and they’re designed to help qualified buyers cover part—or sometimes all—of their down payment or closing costs.

Each state has its own guidelines, income limits, and program features, which means eligibility and benefits can vary widely depending on where you’re buying. Some programs offer forgivable grants, while others provide low-interest second loans or deferred-payment options.

Working with an experienced loan officer who understands your local DPA options can make all the difference in finding the right fit — and unlocking the path to homeownership sooner than you might think.

Key Features of Down Payment Assistance (DPA) Programs

State & Local Programs:
Most DPAs are managed by housing agencies at the state or county level, each with unique eligibility rules, income limits, and loan terms.

Grants & Forgivable Loans:
Many programs offer grants that never have to be repaid or forgivable loans that are erased after you live in the home for a certain number of years.

Deferred or Low-Interest Second Loans:
Some DPAs provide second mortgages with no payments due until you sell, refinance, or pay off your primary loan — making homeownership more affordable upfront.

Paired with FHA, VA, USDA, or Conventional Loans:
These assistance funds can often be used with popular loan types, helping first-time or repeat buyers lower their out-of-pocket costs.

Income & Credit Flexibility:
Many programs allow moderate income levels and credit scores as low as 620, depending on the lender and location.

Homebuyer Education Required:
Most programs include a brief homebuyer education course to prepare you for homeownership success.

Closing Cost Help:
Some programs cover not only the down payment but also part of your closing costs, saving you thousands at the closing table.