DPA Loans: Your Secret to Buying a Home


For many homebuyers, obtaining funds for a down payment or closing costs can seem overwhelming. However, there are many Down Payment Assistance programs (DPA Loans) available to help provide the funds needed to finalize your home purchase.    

What are Down Payment Assistance Programs (DPA Loans)?

Closing costs and a down payment are part of the home buying process. These costs will vary depending on the purchase price of the house and other factors, but with Down Payment Assistance, they can be partially or fully reduced. These funds often come from government agencies and can be in the form of gift funds, grants, or low-interest loans.    

Types of Down Payment Assistance 

All home financing scenarios are unique, and depending on your needs, there may be a DPA program that best helps you achieve both your short and long-term goals. Types of down payment assistance include:
  •     Grants – This is a gift funded by a government agency or other organizations that does not have to be repaid.
  •     Loans (second mortgages) – There are three different types of DPA second mortgages:
  1.     Loans where a portion is paid back monthly, in addition to an original mortgage payment.
  2.     Loans where payment is deferred and paid back when the property is sold or refinanced.
  3.     Loans where the borrowed amount is forgiven over a set number of years (often 5, but up to 15 or 20). This type of loan is only repaid when the property is sold or refinanced within the set number of years.
 

How to Qualify for Down Payment Assistance 

Every Down Payment Assistance program will have its own set of qualification requirements depending on its source, the location where you intend to purchase, and the type of assistance. Here are some common terms of eligibility you are likely to find:
  • Borrower must fall within an income limit
  • Buyer must occupy the property as their primary residence
  • The home being purchased is in a qualified area
  • Assistance is used in conjunction with an approved mortgage program and approved lender
 

Down Payment Assistance by State

There are several state funded down payment assistance programs that serve to support sustainable home ownership. While programs such as Edge and New Home Advantage are available in several states, here are a few state-specific down payment assistance programs: 1. Arizona   HOME Plus Program   Pathway to Purchase Down Payment Assistance   Pima Tucson Homebuyer’s Solution Program   2. Colorado   Metro DPA Program   CHFA SmartStep Plus   3. Texas   My First Texas Home   Homes For Texas Heroes Program   TX Land Board Program    

Apply for Down Payment Assistance Now! 

If you are looking to purchase a home, Spire Financial can help.  We can assist you in securing the funds you need as a homebuyer through Down Payment Assistance ProgramsOur loan experts will guide you through the process of finding the assistance that best fits your home buying goals.

A Lending Hand for Financing Home Mortgages

Spire Financial (A Division of AmeriFirst Financial Inc.) brings lending expertise to you. All of our loan officers offer personalized communication for every client, guiding them through the process. We can show you ways to maximize your finances and unlock future opportunities. Spire Financial keeps you in control of refinancing, debt consolidation, and home equity. Together, we can achieve your financial goals.

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Disclaimer


Spire Financial, a division of AmeriFirst Financial, Inc., 1550 E. McKellips Road, Suite 117, Mesa, AZ 85203 (NMLS # 145368). 303-595-0110. © 2022. All Rights Reserved. This is not an offer to enter into an agreement. Not all customers will qualify. Information, rates, and programs are subject to change without prior notice. All products are subject to credit and property approval. Not all products are available in all states or for all loan amounts. Other restrictions and limitations apply. AmeriFirst Financial, Inc. is an independent mortgage lender and is not affiliated with the Department of Housing and Urban Development or the Federal Housing Administration. Not intended for legal or financial advice. Visit https://amerifirstloan.com/pages/state-licensing for all state licenses information. Visit NMLS Consumer Access at https://www.nmlsconsumeraccess.org/

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