Down Payment Assistance Loans
Grant and second-mortgage programs that help cover the cash needed to buy.
For many buyers, income is not the obstacle. The up-front cash is. Down payment assistance closes that gap with either a grant that never has to be repaid or a deferred second mortgage layered behind your first loan.
Assistance is paired with an eligible first mortgage, so we structure both together and show you the true monthly cost before you commit.
Grant option
The Down Payment Assistance Grant* provides up to the lesser of $25,000 or 3 percent of your first mortgage** (for example, up to $6,000 on a $200,000 mortgage). No repayment is required.
Second mortgage option
The Second Mortgage Loan* provides up to the lesser of $25,000 or 4 percent of your first mortgage** (for example, up to $8,000 on a $200,000 mortgage). Repayment of the balance is deferred until certain events, such as payoff of your first mortgage, the sale or refinance of the home, or the home no longer being your primary residence.
What to expect
Assistance programs come with their own eligibility rules such as income caps, homebuyer education, and occupancy requirements are common. Because assistance typically carries a higher interest rate on the first mortgage, we compare the assisted structure against a standard low-down-payment loan so the tradeoff is clear.
How to qualify
Eligibility is program-specific, but most assistance shares a common set of requirements. We confirm which programs you fit before you write an offer, so nothing unravels mid-contract.
- Household income within the program limit for your county
- Completion of an approved homebuyer education course
- Occupancy of the home as your primary residence
- A qualifying first mortgage, often FHA or conventional
Advantages
- Dramatically reduces cash needed at closing
- Grant option requires no repayment
- Can be combined with eligible first mortgage programs
Things to consider
- Higher interest rates apply*
- Income and occupancy limits apply
- Homebuyer education may be required
Common questions
Does assistance have to be repaid?
The grant does not. The second mortgage is deferred and repaid at payoff, sale, refinance, or when the home is no longer your primary residence.
Can I still use gift funds?
In most cases yes. We will confirm what the specific program allows for your scenario.
Do I have to be a first-time buyer?
Many programs require it, and most define a first-time buyer as someone who has not owned a home in the past three years. Some programs waive it in targeted areas.
Is the rate higher with assistance?
Usually yes. We compare the assisted structure against a standard low-down-payment loan so you can see exactly what the help costs over time.
Program disclaimers
- * Higher interest rates apply
- ** For a 30-year, fixed-rate loan
- * Higher interest rates apply
- ** For a 30-year, fixed-rate loan
- Program details are informational only and are not an offer for extension of credit or a commitment to lend. Terms are subject to change without notice.
Ready to explore Down Payment Assistance financing?
Start a conversation with a licensed loan officer, or begin your application whenever you're ready.