Down Payment Assistance: Explore your Options
Estimated read time: 3 minutes
Key takeaways
- Down payment assistance (DPA) can help cover part of the down payment and/or closing costs.
- DPA options vary by city, county, and state, plus income, loan type, and property rules.
- Some DPA is a grant or forgivable support if requirements are met. Some is a repayable second loan.
- The best move is to explore DPA early, before deadlines and contract pressure.
Table of contents
The Basics
Buying a home doesn’t always require a large lump sum upfront. Down payment assistance, often called DPA, refers to programs that help cover part of a buyer’s down payment or closing costs. These programs are typically offered through state housing agencies, cities, counties, or local nonprofits.
Down payment assistance isn’t one single program, it’s a category of support. Options vary by location, income, and loan type.
Some programs offer grants that may not need to be repaid, if program requirements are met.
Others use low-interest or deferred loans that are paid back later, often when the home is sold or refinanced.
Why this matters right now
In many markets, rent payments are close to—or higher than—monthly mortgage payments.
The biggest challenge for many buyers isn’t income. It’s having enough cash at closing.
Down payment assistance can help bridge that gap and move buyers forward sooner than expected.
What these programs can look like
Availability depends on the home’s location and the buyer’s profile, but common examples include:
- State housing agency programs
Often paired with FHA, VA, or Conventional loans. These may offer grants or second mortgages with very low or no monthly payments. - City or county assistance
Local programs may target first-time buyers, workforce housing, or specific neighborhoods. - Employer or nonprofit programs
Some employers and community groups offer assistance as part of workforce or community development efforts.
Many buyers are surprised to learn they qualify for help. The key is knowing where to look and how programs can be layered with the right loan.
For Realtors
Down payment assistance can help keep deals moving when a buyer is approved but short on cash to close.
- It can expand the pool of qualified buyers
- It can reduce last-minute deal fallout
- It works best when explored early, well before contract deadlines
Quick rule: if a buyer says, “We can afford the payment, but can’t cover the down payment,” it’s time to explore DPA options.
Quick FAQ
Do I have to be a first-time buyer?
Not always. Some programs define first-time buyers as anyone who hasn’t owned a home in the last three years. Others don’t require first-time status at all.
Is down payment assistance income-restricted?
Many programs have income limits, but those limits can be higher than people expect and vary by household size and area.
Can assistance be combined with other loan programs?
Assistance can often be paired with FHA, VA, USDA, or certain Conventional options, depending on the program guidelines.
Learn more with Radiant
Ready to explore your options?
Down payment assistance is local and highly personal. The fastest way to understand what’s available is to talk it through with someone who works with these programs every day.
About Radiant Mortgage
Radiant Mortgage helps buyers make confident home financing decisions through clear guidance, thoughtful education, and personalized support. As a division of Gold Star Mortgage Financial Group, Corp., Radiant works with buyers, homeowners, and real estate partners to find loan solutions that fit real lives and long-term goals.
Gold Star Mortgage Financial Group, Corp., d/b/a Radiant Mortgage, LLC. Equal Housing Lender. NMLS ID 3446. Loan programs and eligibility are subject to change. Not a commitment to lend.