Down Payment Assistance Programs

Owning a home may feel out of reach, but the right Down Payment Assistance (DPA) programs can help make it possible. These options are designed to reduce upfront costs, helping you achieve homeownership sooner and with less financial strain.

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1% Down Conventional Loan (With Lender Assistance)

This program allows you to buy a home with just 1% down, while the lender contributes an additional 2%, up to $7,000, to reach the minimum 3% required for a conventional loan.

Example:
For a $250,000 purchase, you’d bring $2,500 and the lender contributes $5,000 toward your down payment. On higher-priced homes, the lender’s contribution caps at $7,000.

Eligibility:

• Income must be at or below the area median income (we can verify this for you).

• Must be your primary residence.

• You must be a first-time homebuyer or not have owned a home in the past 3 years.

Key Benefits:

• Significantly reduces out-of-pocket costs.

• No second lien or repayment.

• Offers conventional loan terms with competitive rates.

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Freddie Mac BorrowSmart®

What It Offers:
A $1,250 grant to help with your down payment or closing costs. No repayment required.

Eligibility:

• Income must fall between 50.01% and 80% of the Area Median Income (AMI).

• Applies to primary residences, including single-family homes, condos, and manufactured homes.

• Requires homeownership counseling from an approved agency.

Key Benefits:

• Can be combined with gifts or employer assistance.

• Ideal for first-time or moderate-income buyers.

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HomeReady First Program

This program supports first-time homebuyers in eligible census tracts with multiple benefits that reduce upfront costs.

DPA Benefits:

1. $5,000 Grant – Can be used for down payment or closing costs.

2. $500 Appraisal Credit – Applied at closing on loans requiring an appraisal.

3. $500 Home Warranty Credit – Covers a 1-year home warranty if purchased by the borrower.

Eligibility Highlights:

• No income limits for homes in eligible census tracts.

• At least one borrower must be a first-time buyer.

• Primary residence only.

• Minimum credit score: 620.

• Completion of homeownership education is required.

Why Choose It:

• Up to $6,000 in total savings between grant and credits.

• Flexible income guidelines for broader eligibility.

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$2,500 Credit with HomeReady® and HomePossible®

What It Offers:
A $2,500 lender credit to help with closing costs or other expenses.

Who Qualifies:

• Must meet AMI limits and program eligibility.

• Must complete homeownership counseling.

Key Benefits:

• Reduces cash needed to close.

• Can be combined with other assistance for maximum affordability.

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SmartBuy Down Payment Assistance

Options Available:

1. 5-Year Forgivable Loan – No repayment if you stay in the home for 5 years. (Min. credit score: 620)

2. 10-Year Repayable Loan – Long-term option with competitive terms. (Min. credit score: 660)

3. Closing Cost Repayable Loan – For buyers needing help with closing costs. (Min. credit score: 660)

Property Types:
Single-family homes, condos, and double-wide manufactured homes.

Additional Features:

• May be used with permanent or temporary rate buydown options.

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Local & State DPAs

In addition to these national programs, we also work with state and local Down Payment Assistance programs. These may include grants, forgivable loans, or low-interest secondary loans that can often be combined with the programs above.