Down Payment Assistance
Down Payment Money Is Out There
We’ll Help You Find It
With Down Payment Resource, you can connect to programs that help cover your down payment and closing costs, making homeownership more accessible than ever.
Overcome the #1 Obstacle to Homeownership
Let’s be real—the biggest thing standing between you and your dream home isn’t your credit score or finding the perfect property. It’s coming up with the cash for the down payment.
It’s the hurdle almost every buyer faces. You’re paying rent, managing bills, and trying to save what’s left over. It feels like running uphill, right? Here’s the secret most people don’t know: there’s money out there to help you.
Yep, thousands of programs exist to help with your down payment and even your closing costs. You just need to know where to look. That’s where we come in.
But not all Down Payment Assistance programs are created equal. Let’s break down the key differences so you can choose the best option for your situation.
Know the Difference
Down Payment Assistance (DPA) programs are initiatives designed to provide financial support for homebuyers struggling to cover their down payment and, sometimes, closing costs. These programs are often funded by state housing agencies, local governments, or nonprofits.
There are a few differences in the types of Down Payment Assistance programs that are available to a new home buyer…they are not created equal.
While the criteria to qualify for many of these DPA programs will vary by program type and location, there are 2 main types that you will come across so be sure to ask what type of DPA program is being offered to you.
2nd Mortgage
Repayable 2nd Mortgage
A typical type of DPA program is a 2nd lien – or 2nd mortgage – that is placed on the home. It will fulfill most or all of your down payment requirement and can will have regular scheduled monthly payments like any 30 year mortgage term…so it will need to be paid back over time.
Some options will allow for deferred payments (no monthly payment requirement), but will still need to be paid back over the course of the time you live in the property. So even though you will not have a monthly payment, you will need to pay back the full amount of the DPA if you move from the home or refinance the home.
Forgivable 2nd Mortgage
Some DPA programs allow for a forgivable status if you fulfill certain criteria. For example, one of the forgivable loan options allow for complete loan forgiveness (so they pay it off for you) as long as you make on-time payments on the first mortgage for 36 months. Yep…so as long as you never miss a payment on your 1st mortgage loan for 3 years, then the mortgage holder will completely eliminate the 2nd mortgage entirely. Great program!
Deferred or Silent Second
A Silent Second postpones repayment of your down payment assistance until a specific event occurs. No monthly payment. No immediate payback. The loan just sits quietly behind your first mortgage until one of these happens:
• You sell the home
• You refinance
• You rent the property out
• You move out
It's one of the most budget-friendly DPA options available because it keeps your monthly housing costs lower while still covering your down payment. Some programs do have income limits or first-time buyer requirements, so checking your eligibility is the best place to start.
Grants
This is the most favorable mortgage option as it is essentially free money. If you qualify for a grant, they issuing institution will provide the funds with no repayment required at all. These are typically more difficult to qualify for and are generally designed for first-time home buyers and veterans.
Ask about all possible grant options that may be available to you in your area. Book a call today!
Down Payment Assistance FAQs
A first home buyer FHA loan is a government-backed mortgage insured by the Federal Housing Administration (FHA) that helps eligible buyers purchase a home with a lower down payment and more flexible credit requirements.
Many first-time buyers choose an FHA home loan because they may qualify with a down payment as low as 3.5% and credit scores that are lower than those required for some conventional loans. In many cases, a first home buyer FHA loan can also be combined with down payment assistance programs to reduce upfront home-buying costs.
Yes. First-time home buyer grants are available through a variety of government agencies, nonprofit organizations, employers, and housing assistance programs. Unlike loans, many grants do not need to be repaid if you meet the program requirements. These funds can often be used toward a down payment, closing costs, or other home-buying expenses.
Eligibility for first-time home buyer grants typically depends on factors such as income, credit history, location, and whether the home will be your primary residence. Many buyers also combine grants with down payment assistance programs to make homeownership more affordable.
Down payment assistance programs help eligible homebuyers reduce the upfront costs of purchasing a home. These programs may provide grants, forgivable loans, deferred-payment loans, or low-interest loans that can be used toward a down payment and, in some cases, closing costs.
Many first-time home buyers use down payment assistance programs to qualify for homeownership sooner and purchase a home with less money out of pocket. Program requirements vary, but eligibility is often based on factors such as income, credit score, homebuyer education, and occupancy requirements.
What's Next?
If you’re ready to stop dreaming and start owning, we’ve got the tools to make it happen. Let us help you find the down payment money you need so you can finally call that house your home.
- Answer a Few Questions: Tell us about your homeownership goals and location.
- See What You Qualify For: Our system matches you with assistance programs in your area.
- Connect with Experts: Get personalized guidance to secure the funds you need.
CHECK YOUR ELIGIBILITY NOW!
With our easy-to-use tool, you can identify the best assistance programs tailored to your family’s needs. No more guesswork—just a clear path to homeownership.
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Ideal Lending LLC, NMLS 2471779 is an Equal Housing Lender. Ideal Lending LLC is not affiliated with or acting on behalf of or at the direction of the Federal Housing Administration (FHA) or any government agency or government-sponsored entity and this offer is not being made by an agency of the government. Ideal Lending LLC is a Licensed Mortgage Lender Servicer, FL MLD2414; Ideal Lending LLC only lends in CO, CT, FL, GA, MA, TN, TX. Refer to www.nmlsconsumeraccess.org and input NMLS 2471779 to see where Ideal Lending LLC is licensed. Equal Opportunity Employer; Equal Opportunity Lender | This is not an offer for extension of credit or commitment to lend. All loans must satisfy underwriting guidelines. Not all applicants qualify. Information and pricing are subject to change at any time and without notice. Certain restrictions may apply.