Down Payment Assistance (DPA) Programs

Down Payment Assistance programs help homebuyers cover part or all of their down payment and, in some cases, closing costs. These programs are designed to make buying a home more affordable, especially for first-time buyers and those who want to keep more money in savings.

DPA funds are typically provided as a grant or a second loan, depending on the program.

How Down Payment Assistance Works

DPA programs are paired with a primary mortgage such as FHA or Conventional loans. The assistance can be structured in different ways:

  • Grants that do not need to be repaid (as long as basic program rules are met)
  • Forgivable second loans that are erased after a set number of on-time payments
  • Repayable second loans with low monthly payments

Some programs offer assistance of up to 3.5%–5% of the purchase price, which can significantly reduce out-of-pocket costs .

Common Benefits

  • Helps reduce the upfront cash needed to buy a home
  • Can be used for down payment and sometimes closing costs
  • Available for FHA and some Conventional loans
  • First-time homebuyer status is often not required
  • Gift funds and co-borrowers may be allowed

Basic Eligibility

Eligibility varies by program, but generally includes:

  • Minimum credit score requirements as low as 600
  • Owner-occupied (primary residence) homes
  • Income limits may apply on certain programs
  • Completion of a homebuyer education course for some options

Is Down Payment Assistance Right for You?

Down Payment Assistance can be a great option if you qualify for a mortgage but need help with upfront costs. The right program depends on your credit, income, and loan type.

At Coast Capital, we help you review available DPA programs and determine which option best fits your homebuying goals.