I Need Down Payment Assistance: How Do I Get It

A down payment is the amount of money a homebuyer must contribute towards purchasing a home. Most mortgage programs require a down payment between 3% and 20% of the home's purchase price. Low to moderate-income homebuyers can contribute even less money through participation in a down payment assistance (DPA) program. 

DPA programs provide money to supplement the cash a lender requires a homebuyer to bring to the closing table. There are many types of DPA programs, and a homebuyer must meet the specific eligibility criteria of the program from which they seek assistance.  Here are some typical DPA program criteria. Always check with the DPA program provider for their criteria.  A homebuyer may need to: 

1. Meet certain income requirements,

2. Be a first-time homebuyer,

3. Complete a homebuyer education course,

4. Have a minimum credit score,

5. Be below a certain debt-to-income ratio,

6. Owner occupy the property,

7. Work with certain lenders,

8. Qualify for a mortgage loan,

9. Purchase a home within certain geographical limits,

10. Purchase a home within certain price ranges.

11. Meet other requirements specific to the DPA.