The FHA down payment assistance (DPA) programs– do they really help buy a house?


Yes, they do. Here's how FHA down payment assistance (DPA) programs help consumers who really can afford the monthly payment but have very little cash on the side for the down payment.

Getting Help with FHA DPAs

FHA mortgage loans allow that the seller finances up to 6% of the loan amount as closing costs and down payment assistance. How does it work for you?

  1. You approach an FHA approved lender and ask about using a DPA program.
  2. Locate your desired house and ask the seller to agree on the transaction using FHA mortgage and a down payment assistance program (DPA).
  3. The house has to be appraised up the original price for usually as little as 3% - the down payment amount required by most FHA programs. As of recently, minimum FHA down payment required can be 1.5% only.
  4. The seller is asked to contribute to closing costs, as well.
  5. In the end, the seller still gets at least 97% of the original house price and you get a nice new home.
Mortgage rates hit their lowest since 1955. Ask the home loan experts we recommend Quicken Loans how to take advantage of them.
Was this Mortgage QnA helpful?
Not at all
  • Currently 3/5 Stars
  • 1
  • 2
  • 3
  • 4
  • 5
Add to this Answer

Mortgage QnA is not a common forum. We have special rules:

  • Post no questions here. To ask a question, click the Ask a Question link
  • We will not publish answers that include any form of advertising
  • Add your answer only if it will contrubute to the quality of this Mortgage QnA and help future readers
If you have trouble reading the code, click on the code itself to generate a new random code. Verification Code Above:
Bookmark and share this QnA: