down payment assistance
Down payment assistance programs (DPAs) can help eligible homebuyers achieve their homeownership goals.
how do DPAs work?
Each state has a State Housing Finance Agency (HFA) that offers down payment assistance for qualified homebuyers. HFAs receive their funding from government allocations and other revenue streams.
additional down payment assistance details:
- Most DPAs are available for low- to moderate-income homebuyers that fall into certain income limits, which are established by the Department of Housing and Urban Development (HUD). HUD determines income limits based on median family income estimates for specific areas
- DPAs also have minimum credit score and maximum debt requirements
- Some DPAs require the homebuyer to provide a small amount of money upfront when buying their home
- Most DPAs require the homebuyer to complete a homebuyer education course (either online or in person); these courses prepare the buyer for the responsibilities of homeownership