Navigating Down Payment Assistance Options What help is available

Saving for a down payment is one of the biggest obstacles for homebuyers today. The good news? You don’t have to do it alone. There are many down payment assistance (DPA) programs available across the country, and as part of the nation’s largest mortgage broker/lender, I have access to over 30 different assistance programs through multiple lenders.

From grants to forgivable loans to special programs for self-employed buyers, we can likely find a solution that fits your needs.

Let’s break down how these programs work, who qualifies, and whether using down payment assistance is actually the right move for you.

What Is Down Payment Assistance?

Down payment assistance is exactly what it sounds like: funds to help cover your down payment and/or closing costs. These programs are often provided by:

State and local housing authorities
Nonprofits
Lenders partnered with federal or state agencies

Types of assistance include:

Grants (you never repay)
Forgivable second mortgages (disappear after a set time)
Deferred-payment loans (repaid when you sell or refinance)
Repayable loans, called 2nd mortgages.

Who Qualifies for Down Payment Assistance?

Each program has its own rules, but here are common eligibility requirements:

Most state and federal agencies offer them to homebuyers with income below area limits (usually 80% to 120% of median income)
Minimum credit score often starts at 580 or higher depending on the program
Primary residence only
Homebuyer education course required (for some programs)
Some programs are for first-time homebuyers, others are not
Lender funded programs usually don’t have income limits or first-time buyer restrictions.

We also offer options for:

Self-employed buyers (Learn more)
Repeat buyers
Buyers using non-traditional income sources

Popular Programs We Offer

Because of our broad lender access, I can offer DPA through:

TDHCA (Texas Department of Housing and Community Affairs)
TSAHC (Texas State Affordable Housing Corporation)
Fannie Mae HomeReady®
Freddie Mac Home Possible®
FHA paired with local/state DPA
Hope 4 Homeownership Program (Read the full breakdown)
Programs like USDA and VA Offer 100% financing and are better than down payment assistance programs.

Not sure which you qualify for? I wrote this guide to help:
Questions to Ask Your Loan Officer About DPA

Is Down Payment Assistance Always a Good Idea?

Let’s be honest: Just because you qualify doesn’t mean it’s the best option.

Pros:

Lower upfront out of pocket to buy a home
Helps preserve your savings
Can make homeownership possible sooner

Cons:

May come with higher interest rates
They will have higher fees
Could include second liens
Some funds are repayable
Can limit future refinance or sale options

If you have the cash to cover your down payment and closing costs without assistance, we should compare both options. I always provide a Total Cost Analysis that breaks down side-by-side scenarios so you can see which path saves you more over time.

Ready to Explore Your Options?

Let’s talk about what you qualify for, and whether it makes sense based on your short- and long-term goals. I’ll help you compare:

Loan programs with and without assistance
Monthly payments
Total upfront costs
Total cost over 5, 10, or 30 years

Start here: Apply for pre-approval
Want to talk first? Contact me here

Down Payment Assistance FAQ

Q: Can I use down payment assistance with any loan type?
A: Most DPA programs can be paired with FHA, Conventional, and even VA or USDA loans depending on the lender and program guidelines.

Q: Do I have to be a first-time buyer to qualify?
A: Not always. Many programs define “first-time buyer” as someone who hasn’t owned a home in the last 3 years. Some programs allow repeat buyers as long as they meet income and occupancy requirements.

Q: Can I get help with closing costs too?
A: Yes. Many programs cover both down payment and closing costs, which can make a big difference in your cash to close. You can also request that your seller pay for your closing cost.

Q: How long does the approval process take?
A: It depends on the program, but typically adds only a few days to the loan process. I’ll help you plan accordingly.

Q: Can self-employed buyers qualify for assistance?
A: Yes! There are programs specifically designed for self-employed buyers. Here’s how they work.

Q: What if I plan to refinance or sell soon?
A: Some DPA programs have forgiveness periods or repayment clauses. We’ll review those in your Total Cost Analysis so you fully understand any long-term impact.