Down Payment Assistance Programs
Homeownership brings stability, community and long-term financial benefits. HomyLoan offers loan programs with as little as 3% down for qualified buyers, plus down payment assistance (DPA) programs, including grants and forgivable loans, that may help cover your down payment and closing costs.
- Grants and forgivable loans
- State and local programs
- Help with closing costs
The basics
What is a DPA loan?
A down payment assistance (DPA) loan helps homebuyers cover the upfront costs of a home purchase. Many borrowers qualify for a mortgage but haven't saved enough for the down payment and closing costs. DPA programs, offered as grants, forgivable loans or repayable second mortgages, can help close that gap for eligible buyers.
- Forms
- Grants & second loans
- Offered by
- State & local programs
- Can cover
- Down payment & closing
How it works
Using down payment assistance in four steps
DPA works alongside your first mortgage. A licensed loan officer helps you match the right program to the right loan.
- 01
Check your eligibility
Your loan officer reviews your income, location and home price to find DPA programs you may qualify for.
- 02
Get pre-approved
Get pre-approved for a first mortgage that works with the assistance program. Some programs also require a homebuyer education course.
- 03
Find your home
Shop within the program's guidelines. Once your offer is accepted, the assistance is requested alongside your loan.
- 04
Close and get your keys
Approved assistance is applied at closing toward your down payment or closing costs, and you move in.
Why it helps
Key benefits of down payment assistance
Down payment assistance programs help make homeownership more accessible, particularly for first-time homebuyers.
Lower Upfront Costs
Grants and forgivable loans may cover part of your down payment and closing costs.
State and Local Programs
Many states and cities offer DPA programs for eligible homebuyers.
Faster Homeownership
Buy sooner instead of waiting years to save a full down payment.
Flexible Options
Choose from grants, forgivable loans or repayable second mortgages.
Your options
Types of down payment assistance
Down payment assistance (DPA) programs come in several forms, each designed for different financial needs. Our loan officers can help you find the DPA programs you may qualify for.
Grants
Gift funds for the down payment or closing costs that typically do not need to be repaid.
Key feature
Helps you buy a home without adding to your debt.
Second Mortgages (Silent Seconds)
A separate, low- or no-interest loan that covers the down payment.
Key feature
Repayment may be deferred until you sell or refinance, or forgiven over time, depending on the program.
Zero Interest Loans
Down payment or closing cost assistance provided as a loan with no interest charged.
Key feature
A low-cost way to cover upfront costs and repay over time.
Program availability, amounts and terms vary by location and are subject to eligibility and credit approval.
Down payment assistance FAQs
Down payment assistance (DPA) is help from a state, local or nonprofit program toward your down payment or closing costs. It may come as a grant, a forgivable loan or a repayable second mortgage.
It depends on the program. Many Texas programs look at household income, credit score, purchase price and whether the home will be your primary residence, and some require a homebuyer education course.
Sometimes. Grants generally don't need to be repaid, forgivable loans may be forgiven after you meet the program's conditions, and repayable second mortgages are paid back over time or when you sell or refinance.
Often, yes. Many DPA programs pair with FHA, conventional, VA or USDA first mortgages, but each program sets which loans it allows.
Not always. Some programs are limited to first-time buyers, while others are open to repeat buyers who meet income and other limits.
A licensed loan officer can compare programs available for your area and income and match one to the right first mortgage. One option some buyers use is the Arrive Home program.
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