Down Payment Assistance Programs
What is a down payment assistance program?
Instead of spending years saving for a down payment, you could get into your first home with little or no cash with a down payment assistance program.
Down payment assistance programs are designed to make homes more affordable for homebuyers. Programs come in several forms for eligible buyers: cash grants or secondary loans.
How do down payment assistance programs work?
Down payment assistance programs work to make homeownership more affordable and are usually for first-time homebuyers.
Most DPA programs are administered by state and local governments, private entities, charitable organizations, and even lenders like us. They are often in the form of forgivable loans and grants.
Qualifying for down payment assistance
Down payment assistance programs are often income-restricted and available to buyers in specific cities, communities, or neighborhoods only.
Other requirements may include:
First-time homebuyers only
Length of occupancy (such as 5 years for full loan forgiveness)
Homebuyer education
What makes you a first-time homebuyer?
You’ve never owned a home before or haven’t owned a home in the past three years, and the home is your primary residence.
Down Payment Assistance Programs
We know saving for a down payment is a challenge for many homebuyers. To help relieve you of the financial stress, we offer a variety of down payment assistance (DPA) programs for conventional and FHA loans.
For most of these programs, one buyer must be a first-time homebuyer, and homebuyer education and other requirements may apply.
Down payment assistance: Frequently asked questions
-
Down payment assistance (DPA) is a homebuying program that gives cash grants and secondary loans to eligible buyers.
The vast majority of down payment assistance is offered to first-time homebuyers. Many cities and counties have other housing programs available, but down payment assistance is typically reserved for those who have not owned a home in the last three years.
-
There is no universal application. Most programs are administered through participating lenders like CrossCountry Mortgage. Your local CCM loan officer will know and understand the ins and outs of the different programs and help you complete the necessary applications.
-
Here are some key things to consider.
Pros
Buy a home faster instead of savings for years
Save money upfront
Afford more house
Get more favorable loan terms
Cons
May cost you more in the long run if it’s an interest-bearing loan
Not everyone qualifies
For certain types of assistance to be fully forgiven, there are requirements to be met
-
In many cases, yes, you can use multiple sources of down payment assistance, provided you qualify. Check with your lender to ensure you’re obtaining a mortgage through a program that allows for more than one source of assistance
-
This depends on the program. Terms and funding amounts are determined primarily by the entity offering the DPA find out what’s offered in your area, and what you need to do to apply, by contacting your loan officer.
-
Not everyone qualifies for down payment assistance programs. If you owned a home in the last three years, your income is too high, or you plan to rent out the property or use it as an investment, you might not qualify for many programs
-
The time it takes varies. It’s best to start your research as early in the homebuying process as possible to give yourself as much runway as you can. Your loan officer will work directly with the assistance program to secure the necessary funds.
-
Yes. You can apply for down payment assistance with certain conventional mortgages.
-
Down payment assistance can help with closing costs, which are the fees and charges you pay when you finalize your mortgage.
Ready to start?
Take the first step toward achieving your financial goals—apply now to get started!