DPA ADVANTAGE

Down Payment Assistance Program

Buying a home is a big financial decision, and one of the biggest hurdles is coming up with the down payment. A down payment is the amount of money you put down when you buy a home, and it's typically 20% of the purchase price or as little as 3.5% for FHA Loans. But for many people, saving up that much money can be a challenge.

That's where down payment assistance (DPA) programs come in. DPA programs are designed to help home buyers cover the cost of their down payment and closing costs. There are many different types of DPA programs available, so it's important to do your research to find one that's right for you.

About DPA Advantage:

DPA Advantage provides a wide variety of eligible borrowers with down payment assistance in the form of a grant equal to 2% or 3.5% of the purchase price on eligible FHA purchases.

Program Highlights

  • No repayment is required
  • No need for a second lien on the property
  • Can be used with the FHA 203(b) program or many FHA renovation programs
  • Seller concession up to 6% can be applied to all borrower paid costs
  • Minimum Qualifying Score: 620
  • A simple one-step process with no need for you or the borrower to engage with a third party

Eligibility

  • Total Borrower's Income is equal to or less than 140% of median area income (Fannie Mae lookup tool)
  • First Time Homebuyer

Borrowers who are current, retired, volunteer, non-paid, or plan to become:

  • First Responders
  • Medical Personnel
  • Educators
  • Civil Servants
  • Military Personnel, or
  • Eligible Properties located in an underserved census tract

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Down Payment Assistance Programs for Home Buyers

Types of DPA Programs

There are two main types of DPA programs: grants and loans.

Grants are free money that you don't have to pay back. They're often offered by government agencies or nonprofit organizations.

Loans are money that you borrow and have to pay back, usually with interest. They're often offered by banks or credit unions.

Eligibility Requirements

The eligibility requirements for DPA programs vary, but they typically include:

  • Be a first-time homebuyer. This means you haven't owned a principal residence within the past three years
  • Meet income limits. DPA programs have income limits, which are set by the government or the organization that offers the program.
  • Have good credit. Most DPA programs require a good credit score, which is typically 620 or above.

How to Find a DPA Program

There are a few different ways to find a DPA program. You can:

  • Speak with a Motto Mortgage Mortgage Competitive Partner Professional.
  • Contact your local housing authority.
  • Ask your real estate agent.
  • Search online.

Benefits of DPA Programs

DPA programs can offer a number of benefits to home buyers, including:

  • Reduced down payment. DPA programs can help you reduce the amount of money you need to put down on a home.
  • Lower closing costs. DPA programs can also help you cover the cost of closing costs, which can save you hundreds or even thousands of dollars.
  • Increased affordability. DPA programs can make homeownership more affordable by reducing the upfront costs associated with buying a home.

Conclusion

If you're thinking about buying a home but are struggling to save up for a down payment, a DPA program may be a good option for you. There are many different DPA programs available, so it's important to do your research to find one that's right for you.

Our Mortgage Professional Team is available to discuss any questions or to see if Down Payment Assistance is available for you.

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