First time homebuyer and down payment assistance programs may help reduce upfront costs with low down payment options, grants, or deferred assistance. If saving for a down payment feels like the biggest hurdle, these programs can help you buy sooner and with more confidence, with clear guidance from pre approval to closing.
First-Time Homebuyer and Down Payment Assistance (DPA) Loans help make homeownership more accessible by offering financial aid for down payments and closing costs. These programs are designed for new buyers who need extra support in affording a home and often come in the form of grants, second mortgages, or forgivable loans.
These programs are ideal for first-time buyers, individuals who haven’t owned a home in the past three years, and those with limited savings. Many DPA programs also cater to teachers, healthcare workers, and public service employees. If you’re struggling to afford a down payment but have steady income and credit, a DPA loan may be a great option.
DPA programs provide financial assistance through grants or low-interest second mortgages that cover down payments and closing costs. Some programs require repayment, while others are forgivable after a set number of years. Eligibility typically depends on income, credit score, and property location.
DPA funds can often be used with popular mortgage loan programs. FHA loans allow down payments as low as 3.5 percent, making them a great option for first-time buyers. VA loans provide zero down payment options for eligible veterans and active-duty military members. USDA loans offer 100 percent financing for homes in designated rural areas. Conventional loans, such as Fannie Mae’s HomeReady and Freddie Mac’s Home Possible programs, allow as little as 3 percent down.
These programs reduce upfront costs, making homeownership more accessible. Some offer forgivable assistance, meaning you won’t have to repay the funds if you meet residency requirements. Others provide flexible credit requirements and lower interest rates than traditional loans. By lowering the financial barriers to homeownership, DPA loans help buyers purchase a home sooner.
If saving for a down payment is the biggest obstacle to buying a home, a DPA loan can provide the financial help you need. These programs are designed to assist qualified buyers with securing a home loan while keeping upfront costs low. If you’re unsure whether you qualify, speaking with a mortgage expert can help determine the best solution for your situation.
Jon Shrum, President of KMC Financial and Team Shrum, guides first time buyers through every step of the process with patience and clear advice. He helps you explore low down payment and down payment assistance options, explains costs upfront, and makes sure there are no surprises. With a supportive, relationship first approach, Jon makes buying your first home feel simple and achievable.
First time homebuyer and down payment assistance programs may help reduce upfront costs and make buying a home more affordable. These FAQs explain low down payment options, DPA grants and assistance, eligibility rules, and what to expect so you can move forward with confidence.
A first time homebuyer loan is a mortgage program designed to help eligible buyers purchase a primary residence with flexible guidelines and lower upfront costs. Many options include low down payment requirements and education resources to support new buyers.
Down payment assistance, often called DPA, may provide funds to help cover your down payment and sometimes closing costs. Assistance may come as a grant, a deferred loan, or a low interest second mortgage, depending on the program and your eligibility.
Not always. Many programs define a first time homebuyer as someone who has not owned a home in the last three years. Some programs also have special eligibility for teachers, first responders, or buyers purchasing in certain areas.
It depends on the loan type. Some conventional programs may allow as little as 3 percent down, FHA is commonly 3.5 percent, and certain DPA programs may help cover part of the required down payment. The right option depends on credit, income, and the property type.
Credit score requirements vary by program. Conventional loans typically favor higher scores, while FHA and some assistance programs may allow more flexibility. Lenders also look at income, debt to income ratio, and overall payment history.
Some DPA programs may help with closing costs, while others focus only on the down payment. Many buyers also use seller credits or lender credits to reduce out of pocket costs, depending on the offer and the loan program.
Many down payment assistance programs have income limits, purchase price limits, or location requirements. These limits vary by county and program. A quick eligibility check can confirm what you may qualify for based on where you are buying in California.
