If you think you need 20% down to buy a home, you’re not alone. It’s one of the biggest myths in real estate. The truth? Most buyers purchase with just 3-5% down—and many qualify for Down Payment Assistance (DPA) programs that can cover part of their down payment and even closing costs.
Yet, 83% of homebuyers who qualified for an FHA loan also qualified for DPA but never used it. Why? Because no one told them it existed. Let’s break it down so you don’t miss out on free money or affordable financing options.
What Is Down Payment Assistance (DPA)?
DPA programs help eligible buyers reduce upfront costs, making homeownership more accessible. These programs come in different forms, each with its own rules and benefits.
Types of DPA Programs:
- Grants – Free money that never has to be repaid.
- Silent Second Loans – A second mortgage with no payments due until you sell or refinance.
- Forgivable Loans – Loans that disappear if you live in the home for a set number of years.
Many buyers assume these programs are only for low-income households, but that’s not always the case. Some have income limits, but many are designed to help middle-class families as well.
Who Qualifies for Down Payment Assistance?
Most programs focus on first-time homebuyers, but “first-time” doesn’t mean you’ve never owned a home. In many cases, you qualify if you haven’t owned in the past three years.
Other factors include:
Income level (varies by program)
Credit score (some require as low as 620)
Location (some programs are state- or city-specific)
Occupancy (most require you to live in the home)
Common Misconceptions About DPA
There’s a lot of confusion surrounding down payment assistance. Here’s what you need to know:
You don’t need 20% down. Most buyers put down 3-5%.
DPA isn’t just for low-income buyers. Many middle-class families qualify.
It’s not always free money. Some programs require repayment, while others are fully forgivable.
How to Find the Right Program for You
DPA programs can be complex, but they exist to make homeownership more affordable. The key is knowing where to look and understanding which ones fit your financial situation.
If you’re wondering whether you qualify for assistance, we can help. Let’s review your options and see how much you could save on your home purchase.
