Legacy Fam 💙
Buying a home doesn’t always require a huge stash of cash. Down payment assistance programs help first-time buyers cover down payments. They also assist with closing costs. This makes homeownership possible much sooner than most people realize.
Let’s break it all the way down. You will know exactly what options are available. You will see which ones can put you inside your new home this year.
💡 Down Payment Assistance Programs Explained: What DPA Really Is
How Down Payment Assistance Programs Work
DPA is free or low-cost money that helps you cover:
- Your down payment
- Closing costs
- Prepaid items (taxes, insurance, escrows)
This can come in the form of:
- Grants (free money)
- Forgivable loans
- Low-interest second mortgages
- Non-repayable assistance if you live in the home X years
These programs are designed to help everyday people. People like YOU can step into homeownership with less stress and less financial pressure.
🏡 Down Payment Assistance Programs Explained: The Most Common DPA Types
1. Grants (The Best Kind!)
➡️ Free money
➡️ Never repaid
➡️ Must meet basic requirements
This is the dream scenario for first-time homebuyers.
2. Forgivable Loans
➡️ No payments
➡️ Balance wipes away after staying in the home a few years
➡️ Great for buyers who want flexibility
Example: Live in the home for 5 years → the loan becomes $0.
3. Second Mortgages with Low Payments
➡️ Small monthly payments
➡️ Still reduces your upfront cost
➡️ Perfect for buyers with stable income but limited cash
State and local down payment assistance programs vary…
🔥 Down Payment Assistance Programs Explained: Who Qualifies for DPA?
Most programs look at:
- Income limits
- First-time buyer status*
- Credit score
- Location of the property
- Homebuyer education classes
*First-time buyer = hasn’t owned a home in the last 3 years.
🎯 Coach Moore Real Talk
DPA isn’t just for “low income” or “struggling” families.
It’s for smart buyers who want to keep more money in their pocket.
The biggest mistake buyers make is not applying because they assume they won’t qualify.
Apply anyway.
Get your options.
Make informed moves.
✨ In Closing
Down payment programs can save you $5,000–$25,000 or more.
That’s money you can KEEP for moving expenses, emergency savings, or future investments.
If you’re serious about buying a home, DPA is your shortcut to walking through that door sooner than you think.
You can explore official down payment assistance programs by state through the HUD Homebuyer Assistance Programs directory.