What Are DPA Programs?
Posted By Family First Funding on Jul 28, 2022

A road block many people face when they decide to purchase a home is the down payment. We get it! It can be very difficult to come up with a substantial down payment in order for you to become a homeowner. However, there is a solution. In this blog post, we’re explaining what DPA programs are and how they can help you!



A down payment assistance (DPA) loan is the type of loan product that can provide borrowers with the ability to have no down payment out of their pocket and up to 100% financing. In some cases, there is enough money left over to also pay some closing costs. The DPA program can be used with conventional and government loan programs. Each have their own distinct advantages and can be an excellent choice for first-time homebuyers.



There are a variety of perks that come with a DPA loan. This program is designed specifically to help first-time homebuyers purchase a home without facing the traditional rigorous qualification process. Here are some of the amazing benefits of this loan program:


  • ZERO down payment option
  • Any extra DPA funds can usually be used to pay for closing costs as well
  • Generous income limitations
  • Available with FHA, VA, USDA, & Conventional loan programs
  • Credit flexibility
  • Both amortizing and forgivable programs with low interest rates to 0% interest rates
  • Low mortgage insurance adjustments



Don’t be shy when questioning the seller’s agent about activity on the home. The more information you have, the better for crafting your offer – or deciding against placing a bid.


There are a variety of ways for first-time homebuyers to receive down payment assistance.  These types of DPA’s will vary by location and organization offering the assistance.



This is the most ideal form of DPA because it is considered a gift and the homebuyer won’t have to pay it back. Be sure to read the fine print though because this could create a lien on your home. A lien isn’t something to be concerned about, but it is important to remember down the road if you would like to sell your home.



This is essentially a second mortgage that you won’t have to pay back as long as you meet the minimum requirements to forgive the loan.  An example of one of the possible criteria is that you have to live in the home for a certain number of years as your primary residence. The year requirements will vary from state to state.



Requirements may vary, but generally the homebuyer will not need to pay back the down payment and closing costs until the home is sold, the mortgage is refinanced, or the mortgage reaches the end of term.



These loans are repaid over a period of time, typically 10 years. These loans are a great way to spread out the costs of the down payment and closing costs over multiple years.


If you’re ready to become a homeowner, don’t allow the initial costs to get in the way! To learn more about our DPA programs, reach out to our team today!


*This material has not been reviewed, approved or issued by HUD, FHA or any government agency. The company is not affiliated with or acting on behalf of or at the direction of HUD/FHA or any other government agency.

This information is provided for convenience only, and Family First Funding LLC and its affiliates (“FFF”) make no warranties concerning the accuracy or completeness of any of the information. Information is subject to change without notice, and FFF is under no obligation to provide updated information. This is not financial, tax, compliance or legal advice and should not be taken or relied upon as such. Each individual should consult with his/her financial, tax, compliance or legal professional. Mention of product, process or service shall not be construed as an endorsement or recommendation by FFF.

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