Question:

Why use a down payment assistance grant?

Answer:

A down payment assistance grant makes a zero down payment possible for many homebuyers with specific home loan programs. Not every mortgage program allows down payment assistance, but there are many that do. FHA loans are an example of loans that allow all your down payment and closing costs to be a family gift or a down payment assistance grant.

Down payment assistance grants can vary from 3% of the loan amount to over $22,000 with some loan programs and they are never repaid. To get a down payment assistance grant, the buyer and their real estate agent have to work with a Down Payment Assistance Counselor to match them with a seller. The seller benefits by selling their home quicker, and for a better price than they would otherwise; the buyer benefits by getting a house they would have had difficulties paying for on their own. 

A down payment assistance (DPA) grant is available for the following home types:

  • 1-4 unit homes,
  • Manufactured Homes,
  • Condominiums,
  • Townhouses, and others.
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