A down payment assistance (DPA) loan is what allows buyers who can’t come up with a hefty down payment qualify for a mortgage loan. The basic criteria for an and a credit score of 600 points or higher and 2 years work history.

Only certain lenders are able to give DPA loans.

What Is Down Payment Assistance?
Down payment assistance helps you cover your down payment as a first-time home buyer. When you buy a home, you’ll usually have to put money down that’s equal to a percentage of your home’s final purchase price. This is called your down payment. The amount you’ll need will vary, and some mortgage programs may not require a down payment at all. Coming up with this upfront cash is often a difficult hurdle, which is why down payment assistance loans, programs and grants were created to help first-time buyers.

How Does Down Payment Assistance Work?
Down payment assistance comes in the form of grants, loans and other programs. It’s typically reserved only for borrowers who qualify as first-time home buyers. Down payment assistance programs can be run by a variety of organizations, including the U.S. Department of Housing and Urban Development (HUD), your local or state housing authority or a nonprofit.

Eligibility is determined by your household income and credit history and varies by state and program. An application is typically needed, and sometimes you’re also required to attend training or home buyer education on the mortgage process and maintaining finances.

There are specific types of DPA loans that your lender can go over with you if you decide an DPA loan is right for you. While deciding what type of DPA loan works for you, it’s also important to note certain limits on DPA loan, namely how high of price they are willing to cover.

And more...so let’s talk about how to get you into a home!

COMMON REQUIREMENTS

DPA LOANS

· Minimum Credit Score 600

· Mortgage DPA Forgivable or Repayable

· No First-time homebuyer requirement

· Complete a Homebuyer education course