Why agents care
DPA can turn a renter who 'can't afford to buy' into a buyer. Agents don't need to know every program's rules, but knowing they exist and referring buyers to participating lenders is valuable.
Glossary term
Down payment assistance
Down payment assistance (DPA) programs, run by state housing finance agencies, local governments and nonprofits, offer grants, forgivable loans or deferred loans to help eligible buyers with the down payment and sometimes closing costs. Eligibility usually depends on income, purchase price, location, occupancy and homebuyer education.
Example
Example: a buyer short $12,000 for down payment and closing costs may qualify for a local forgivable assistance loan, subject to the program's income and price limits.
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Questions by topic
Down payment assistance: common questions
Who qualifies for down payment assistance?
It depends on the program: commonly income limits, price limits, first-time buyer status and the property's location.
Does assistance have to be repaid?
Some is a grant, some forgivable over time, and some must be repaid when the home is sold or refinanced.
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