Down Payment Assistance (DPA) programs assist homebuyers by providing additional funds from a third party for purchase transactions. The funds help cover the down payment and/or closing costs. DPA is either in the form of a gift/grant or in the form of a loan secured by the property (second mortgage). DPA is typically provided by the State Housing Authority or a municipality like a city or county. DPA second mortgage loans may either be forgivable, deferred (no payments on the loan, but the principal will be paid back at a time in the future), or repayable (with monthly payments).
DPA programs have their own set of requirements that must be met. Some of those requirements may include income limits and the need to be a first-time homebuyer. The requirements differ based on the program.
Homebuyers usually work with their lenders to obtain DPA funds. Loan Officers at Success Mortgage Partners can help you identify DPA programs for which you may qualify.