Down payment assistance (DPA) is a type of financial assistance that helps homebuyers cover the down payment and/or closing costs associated with purchasing a home. These programs are typically offered by government agencies, non-profit organizations, or private companies and are designed to help low- to moderate-income homebuyers who may not have enough savings to cover the upfront costs of buying a home.
There are several types of DPA programs available, including grants, loans, and deferred payment loans. A grant is a form of gift money that does not need to be paid back, while a loan typically has to be repaid with interest. A deferred payment loan allows borrowers to defer payments on the loan until a later date, such as when they sell the home or pay off the primary mortgage.
DPA programs may have income and credit score requirements, as well as limits on the amount of assistance provided. Some programs may also require borrowers to complete a homebuyer education course before receiving assistance.
DPA programs can be a valuable resource for homebuyers who need help covering the upfront costs of buying a home. If you’re considering a DPA program, please reach out to us today!