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Down Payment Assistance

You may not need as much saved as you think.

What Is Down Payment Assistance? 

Down payment assistance, often called DPA, refers to programs that provide financial help for the upfront costs of buying a home. These programs are typically offered by state housing agencies, local governments, and nonprofit organizations. 

Assistance comes in several forms: grants that do not need to be repaid, second mortgages with deferred or forgivable repayment terms, and matched savings programs. Most are designed for first-time homebuyers, but some programs are open to repeat buyers or specific professions such as teachers, first responders, and healthcare workers. 

Down payment assistance is almost always paired with a primary mortgage such as an FHA, USDA, or conventional loan. At Lender Express, we help you understand which programs you may qualify for based on your income, location, and loan type. 

 

Key Benefits

  • Reduce or eliminate your out-of-pocket down payment
  • Some programs cover closing costs as well
  • Grants do not need to be repaid
  • Forgivable second mortgages are typically forgiven after a set number of years
  • Can be layered with FHA, USDA, VA, and conventional loans
  • Programs available in every state we operate in: AZ, CA, CO, ID, FL, MT, OH, OR, and TX
  • Many programs have no income limit if you meet other qualifications

 

How It Works

  1. Talk to a Lender Express loan officer who will review your income, location, and loan type to identify programs you may qualify for.
  2. We confirm your eligibility requirements, including income limits, purchase price limits, and homebuyer education requirements if applicable.
  3. Your primary loan (FHA, conventional, USDA, or other) is structured first, and then the DPA is layered on top.
  4. Funds are applied at closing to cover your down payment, closing costs, or both.
  5. If the program is a grant or a forgivable loan, no additional monthly payment is required in most cases.

 

Not sure where to start? Use our mortgage pre-qualification calculator to get a sense of your buying power before you apply. Link: https://lenderexpress.com/mortgage-calculator/

 

Who This Loan Is Best For

  • First-time homebuyers who have not owned a home in the past three years
  • Buyers with steady income but limited savings
  • People purchasing in eligible income or geographic target areas
  • Teachers, first responders, healthcare workers, and others who may qualify for profession-specific programs
  • Repeat buyers in certain states where programs allow prior homeownership
  • Anyone who wants to keep more cash on hand after closing

 

Basic Requirements

Requirements vary by program and state. Common guidelines include:

  • Income limits based on area median income — typically 80 to 120 percent of AMI
  • Credit score minimums, often 620 or higher depending on the paired loan type
  • Purchase price limits set by the program or county
  • Must be a primary residence, not an investment property
  • Homebuyer education course completion is required by most programs
  • Must qualify for and obtain a primary mortgage to use most DPA funds

 

Because programs vary by state and county, the best way to find out what you qualify for is to speak with a loan officer. We know the programs available in the states we serve and can guide you through the requirements.

Our Extensive Loan Product Offering Includes:

We leverage advanced lending technology to enhance every stage of the loan journey — from instant calculations and eligibility checks to secure document processing. This platform-driven approach allows us to deliver faster responses while maintaining accuracy and compliance.

  • Conventional Loans (including low down payment options)
  • FHA Loans
  • VA Loans (even for borrowers with credit challenges)
  • USDA Loans
  • Jumbo Loans
  • HELOCs and Home Equity Loans
  • Reverse Mortgages
  • 2-1 Buydowns (help your clients reduce their initial monthly payments)
  • Down Payment Assistance Programs (DPA)
  • Non-QM Loans (for borrowers who don’t fit traditional lending criteria)
  • DSCR Loans (multiple ways to structure for investors)
  • Bank Statement Loans (for self-employed borrowers)

COMMON QUESTIONS

Is down payment assistance the same as a loan?
Not always. DPA can come as a grant (free money that does not need to be repaid), a forgivable second mortgage (repayment is waived after a set period if you stay in the home), or a deferred loan (repayment is postponed until you sell or refinance). Each type has different terms and conditions.
Do I have to be a first-time homebuyer?
Many programs require it, which means you have not owned a home in the past three years. But some programs are open to repeat buyers, particularly in targeted geographic areas or for specific professions. Your loan officer can identify which programs are available to you.
Does DPA increase my monthly payment?
If the assistance is a grant, no. If it is a forgivable or deferred second mortgage, the additional payment is usually zero or very small during the assistance period. Your loan officer will show you the full picture before you commit.
Can I use down payment assistance with an FHA loan?
Yes. FHA loans are one of the most common pairings for DPA programs. The assistance can cover the FHA minimum down payment of 3.5 percent, and sometimes closing costs as well.
What states have DPA programs?
Every state we are licensed in has active DPA programs: Arizona, California, Colorado, Idaho, Florida, Montana, Ohio, Oregon, and Texas. Program availability, amounts, and eligibility rules vary. Talk to one of our loan officers for specifics in your area.
Will using down payment assistance affect my interest rate?
Some programs are paired with below-market interest rates, while others are combined with a market-rate primary mortgage. Your loan officer will lay out all the tradeoffs so you can make an informed decision.

Helpful Tools and Resources

Use our mortgage calculator to estimate your monthly payment and see how a smaller down payment affects your costs over time. 

Open Mortgage Calculator →

Download our free First-Time Homebuyer Guide for a step-by-step breakdown of the process, including how DPA programs work and what you need to qualify.

Download Free Guide →

Related Programs

View All Programs →
FHA Loans →
USDA Loans →

Why Lender Express

We Work for You, Not a Bank

Lender Express is a mortgage broker, not a lender. That distinction matters. We work for you, not for a single bank. Our job is to compare loan options across a wide network and help you find a solution that fits your goals and your situation.


Our loan officers take the time to understand what matters most to you before making any recommendations. The focus is always on clear guidance, honest answers, and helping you make a confident decision.

Down payment assistance programs have helped thousands of buyers close the gap between renting and owning.

Talk to a Lender Express loan officer to find out which programs are available in your area and whether you qualify.
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Interest Rates, APR’s & programs are illustrations subject to change at any time. These do not constitute a ‘Loan or Good Faith Estimate’ for payments and closing costs. Not all applicants will qualify. APR may vary by product type. Consumer is not obligated to use any party mentioned. Lender Express Mortgage is not affiliated with FHA, VA, USDA or the Federal Government. Lender Express Mortgage, LLC supports Equal Housing Opportunity (www.nmlsconsumeraccess.org) | (888) 286-0367 | 2500 S Power Rd Bldg 9 Ste 133, Mesa, AZ 85209. Regulated by the AZ Department of Financial Institutions. Arizona License #MB-1008082, CA #60DBO-140688, CO #MB-1963444, FL #MBR4665, IA #1963444, OR #1963444, PA #79751, TX #1963444. Figure: 7 tac § 80.200(b) consumer wishing to file a complaint against a company or a residential mortgage loan originator should complete and send a complaint form to the Texas department of savings and mortgage lending, 2601 North Lamar, suite 201, Austin, Texas 78705. Complaint forms and instructions may be obtained from the department website at www.Sml.Texas.Gov. A toll-free consumer hotline is available at 1-877-276-5550. The department maintains a recovery fund to make payments of certain actual out of pocket damages sustained by borrowers caused by acts of licensed residential mortgage loan originators. A written application for reimbursement from the recovery fund must be filed with and investigated by the department prior to the payment of a claim. For more information about the recovery fund, please consult the department’s website at www.Sml.Texas.Gov. Above information and content is accurate as of 6/22.