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What Is A Down Payment Assistance Program?

Down payment assistance (DPA) programs are locally-supported initiatives that give away cash grants, cheap loans, and tax breaks to buyers of U.S. homes.

Most programs are government-backed. Some are community-backed.

Because of down payment assistance programs, home buyers don't need a big down payment to stop renting and start buying.

Down payment assistance programs comes in 5 varieties.

  1. Cash grants for making a down payment on a home
  2. No-interest loans for making a down payment on a home
  3. Official interest rate reductions for your mortgage loan
  4. Income tax reductions from your state and federal governments
  5. Direct reimbursement for your mortgage closing costs

Depending on where you buy, you might have access to some, all, or none of the programs.

Down payment assistance programs are available to first-time buyers and repeat home buyers. Though, the hardest part of getting a down payment assistance approval is knowing that a program exists for you.

DPAs are typically run on a local level, and without much of budget for marketing and advertisement. As a result, you may not know what programs you can use. 

To find out more about down payment assistance programs where you live, use the chatbox and tell us where you're moving.

Dan Green

Dan Green

Dan Green is a former mortgage loan officer and an industry expert. He's appeared on NPR and CNBC, and in The Wall Street Journal, Bloomberg, and dozens of local newspapers. Dan has helped millions of first-time home buyers get educated on mortgages, real estate, and personal finance. Have mortgage questions? Ask Dan in the chat.

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