Down payment assistance
made easy

Down Payment Assistance, also known as DPA, is an umbrella term for the vast catalog of programs that are used to help first-time home buyers qualify for home ownership. Engaging in one of these programs gets you financial assistance in the form of given or borrowed funds, that are exclusively intended for the initial costs of purchasing a home. They're called down payment assistance programs, so you might expect them to only be used for a down payment on a house. However, there are programs that allow the funds received to be used for closing costs or other initial/upfront costs of purchasing a home. This flexibility empowers buyers to enter the home-buying process whose immediate savings may fall short. We like to call this “free” money, but it's important to note that down payment assistance is not really free money. The money you receive from these programs comes in the form of loans or grants which get repaid over time with interest or through taxes. The creators of these programs are (1) government entities (federal, state, and local) (2) mortgage lenders, and (3) nonprofit organizations. Because of the variety of programs (due to the varying sources), each program has its own restrictions and criteria to be met in order to qualify. The resources currently available surrounding down payment assistance can make these programs seem enshrouded with red tape. That doesn't have to be the case. We're here to clear the air and bring these programs into reality for real home buyers (like you!)

All down payment assistance originates from one of the following creating entities: these can be the government at all levels (federal, state, local), banking institutions, and nonprofit organizations. Then, lenders (the people actually providing you the approvals and funds to buy a house), are made aware of the programs or have the resources to find them and become able to work with home buyers to help them apply and qualify. This process is typically done in conjunction with your mortgage loan. Finding a lender that is familiar with down payment assistance programs in your area will make your application process easier and smoother. Though all lenders should be capable of finding and accessing the programs on your behalf, this doesn't mean you can't do your own research. Lenders might have the advantage of understanding these programs since they live in them and have other financial requirements day-to-day, but you are an expert on your needs. Feel free to look up the options for down payment assistance in your area and bring it to your lender's attention. Together, you can both work towards creating a home-buying financial plan that achieves your dreams of home ownership.

It depends. (Sorry, but it really is a complicated answer!) The amount of time it takes to actually receive your down payment assistance varies depending on the specific program you're using, how quick your lender is at responding, how organized you may be with your paperwork, as well as what time of year it is (whether it's the busy season for home buying) and the location that you're trying to buy in. The best way to get approved as quickly as possible is to control what's within your responsibility. This means staying on top of your paperwork. The better organized and responsive you are with your documents and your lender's requests, the faster and clearer their submissions will be, and the smoother your application and approval process can run. Many lenders will have some familiarity with the program requirements that you'll be interested in, but if you have done more research, you can help them with any knowledge gaps they may have and work as a team to access your down payment assistance as quickly as possible.

Sometimes! The Federal Housing Administration is a government organization that works with housing finance agencies to provide FHA loans to aspiring homebuyers who may need extra help with a down payment. Certain programs are stackable, meaning you can use more than one at a time, but the specific FHA loan you're using, as well as your specific situation, will ultimately dictate if you can get additional down payment assistance. It's best to contact your FHA approved lender and ask if you qualify for anything additional.