Down payment assistance (DPA) programs offer loans and grants that can cover part or all of a home buyer’s down payment and closing costs. DPA programs vary by location, but many home buyers could be in line for thousands of dollars in down payment assistance if they qualify.
Down payment assistance programs are typically meant for first-time home buyers. However, a repeat home buyer often counts as a “first-time buyer” if they haven’t owned a home in the past three years.
Typical requirements to qualify for down payment assistance:
- First-time home buyer
- Low- to moderate-income
- Buying a primary residence
- Buying within local purchase price limits
- Using an approved mortgage program
- Working with an approved mortgage lender
Keep in mind that every down payment assistance program is a little different. The exact criteria to qualify will depend on where you live and which programs are available. In addition, you could get more money and qualify more easily if you’re buying in a so-called “target area.” Your lender can help determine if your property is eligible.