Down Payment Assistance: Frequently Asked Questions for Homebuyers

Down payment assistance, often called DPA, helps eligible buyers cover part of the upfront cost of purchasing a home. Depending on the program, it may help with the down payment, closing costs, or both.

Programs may be offered through state or local agencies, nonprofits, employers, and other providers. (My Home by Freddie Mac)

No. Some assistance comes as a grant. Other programs provide loans that are repayable, deferred, or forgivable when you meet certain conditions.

Before accepting assistance, ask: "Will I have to repay this money, and what could trigger repayment?"

Some programs require you to own and occupy the home for a certain period. Always review the actual agreement. (My Home by Freddie Mac)

The program determines that. Repayment may be postponed until a later date or an event such as selling the home.

Ask whether payments are required, whether interest accrues, and when the balance becomes due.

A mortgage credit certificate, or MCC, is a tax-related benefit that qualifying programs may offer. It is different from receiving cash for your down payment.

Ask a tax professional how an MCC would apply to your situation. (My Home by Freddie Mac)

There is no single amount for every buyer.

A program may offer a fixed dollar amount, a percentage of the purchase price, or assistance calculated under other rules. Your location, income, property, mortgage, and available funding can affect the amount.

An advertised maximum is not a promise that you will receive it.

Some programs allow this. Others limit what the funds can cover.

Ask your lender to show you:

• Your down payment.
• Closing costs and prepaid expenses.
• Assistance applied.
• Other approved credits.
• Your remaining cash needed to close.

Do not assume that. You may still need money for a required contribution, earnest money, inspections, expenses due before closing, moving, or reserves.

Ask which expenses you must pay and when. Keep room in your budget for ownership costs after closing.

Not always. Some programs require first-time buyer status. Others allow repeat buyers.

Do not rule yourself out solely because you have owned a home before. (Consumer Financial Protection Bureau)

Possibly. The program's definition of a first-time buyer and its ownership lookback rules control.

Tell the lender when you last owned a home and whether you previously used an assistance program.

It depends on the program.

A program may restrict assistance to one use, require a waiting period, or allow another application under certain conditions. Qualifying as a first-time buyer again does not automatically mean you can reuse a particular benefit.

No. Income limits vary. Some programs serve moderate-income buyers, and some have no income limit.

Ask how the program calculates income, whose income counts, and whether household size affects eligibility.

Possibly. That income does not automatically exclude you from every program. It also does not establish eligibility.

Your household, location, and the specific program must be reviewed.

No. You must meet the applicable mortgage, assistance-program, and lender requirements.

A participating lender can review your credit and explain which options may be available or what needs attention.

Having debt does not automatically rule you out.

The lender must evaluate your income, required debt payments, proposed housing payment, and other mortgage requirements. Assistance can help with an upfront cost without solving a monthly affordability problem.

Some programs serve veterans, service members, educators, health care workers, first responders, or other groups.

Mention your military status and employment when exploring options. A special category may create another opportunity, but you must still meet the remaining requirements. (My Home by Freddie Mac)

Yes. You can investigate assistance and financing before purchasing.

Renting now does not establish eligibility or disqualify you. Start by reviewing your finances and potential options instead of assuming you must have 20% saved first.

Not necessarily. Some mortgages allow much smaller down payments. Certain conventional mortgages permit 3% down for eligible borrowers.

Ask your lender to explain the down payment, mortgage insurance, monthly payment, and total costs for the options you qualify for. (My Home by Freddie Mac)

No.

A low-down-payment mortgage reduces the amount the loan requires you to put down. Assistance may help you meet that requirement or cover other approved expenses.

The lender must confirm whether the mortgage and assistance can be used together.

Many programs can be used with an eligible FHA or conventional loan. Some require a specific mortgage product or participating lender.

Confirm compatibility before choosing the financing. (Consumer Financial Protection Bureau)

Sometimes. Combining programs is often called stacking or layering.

Each program provider and the mortgage lender must allow the combination. Do not add advertised maximums together and assume that total is available to you.

Ask the lender to compare your eligible options with and without assistance. Review:

• Interest rate.
• Loan fees.
• Mortgage insurance.
• Monthly mortgage payment.
• Any assistance-loan payment.
• Future repayment obligations.

Less cash needed today is one factor. The full cost and terms matter too.

It may reduce upfront costs, but you still need mortgage approval and a monthly payment you can manage.

Consider principal, interest, taxes, insurance, association dues, maintenance, and any assistance-loan payment. Start with a budget you can sustain.

Programs may cover an entire state, a county, a city, or a smaller designated area.

If you are considering several communities, review each location. The same programs may not apply everywhere.

No. Purchase-price limits and property requirements vary. Some programs support new construction and other property options.

The specific home still must meet the relevant program and mortgage requirements.

Some programs allow new construction. Confirm the property, mortgage, completion schedule, and assistance deadlines before committing.

Assistance for purchasing an eligible completed home does not automatically mean funds are available to purchase land or finance a custom build.

Some programs support eligible multiunit purchases. Ask which unit counts are allowed and whether you must occupy one unit.

Do not assume a program for an owner-occupied duplex applies to a property purchased solely as an investment.

Some programs allow manufactured homes. The home must satisfy the applicable program and mortgage requirements.

Have the lender review the specific property before relying on assistance. Down Payment Resource identifies new construction, manufactured homes, and multifamily properties as options supported by some programs.

No. A listing may be located where a program operates or meet initial property criteria.

You must still qualify. The financing, property, funding, and program requirements must receive the necessary review.

Down Payment Resource tracks homebuyer assistance programs and provides tools to help buyers and housing professionals identify potential matches.

It works with Multiple Listing Services, REALTOR® Associations, real estate companies, lenders, and more than 1,400 program providers across the country to make consumers aware of down payment programs — working together to help empower more homebuyers with valuable information about down payment assistance and homeownership education.

It provides a starting point for research and a conversation with a participating lender. Start your search here.

It is a program-search and inquiry tool that an agent or loan officer may share through a personalized link.

You enter information about your planned purchase, review possible matches, and can request details and follow-up.

Typical questions include:

• Where you want to buy.
• Purchase price.
• Property type.
• Income.
• Veteran status.
• Contact information.

More complete information can narrow the results. Answer accurately so the follow-up reflects your circumstances.

Programs have different requirements.

Changing the location, price, property type, or other details may add or remove potential matches. The changing count reflects initial screening, not a final approval decision.

No. The search identifies possible programs and collects an inquiry for follow-up.

A mortgage application and a program's approval process are separate steps. Read each form so you understand what you are submitting.

Chuma receives your inquiry and the search information you supplied.

You'll also receive information and contact details by email. The next step is to discuss potential matches and connect with a participating lender.

No. A displayed maximum represents the highest assistance amount for one potential program match.

It is not an award, approval, or combined total. Your actual eligibility and amount require confirmation.

Not necessarily. Some programs require a participating or approved lender.

Before completing a full application, ask: "Does your company offer the specific assistance program I want to explore?"

Through Down Payment Resource, Chuma has direct relationships with a number of participating lenders, MLS organizations, and associations.

DPA Partnerships

Ask which programs the lender's company supports. A loan officer may be limited by company approvals.

You can also investigate participating lenders through the program provider, state housing finance agency, or a housing counselor. One lender's limitations do not establish that no options exist.

Early, preferably before making an offer.

Program requirements, lender participation, education, and funding can affect the purchase. Early review helps your agent and lender work with realistic financing assumptions.

Ask the lender for a personalized checklist. It may include:

• Identification.
• Income and employment records.
• Bank statements.
• Applicable tax returns.
• Information about existing debts.
• Additional documents required by the assistance provider.

Use the lender's secure process for sensitive records.

Many programs require one.

Confirm the accepted provider, course, format, and completion deadline before enrolling. A general homebuying class may not satisfy a particular program.

You can begin with HUD's housing counseling resources.

Ask the agency and program provider whether the education offered meets your program's requirements. You can also reach out to Chuma directly for guidance on finding a course that satisfies your program.

The program determines that.

Ask how old the certificate can be and whether it must remain valid through application, funding reservation, or closing. Confirm the timing before paying for or completing a course.

No. Finding a program and reserving its funds are separate matters. Ask:

• Is funding currently available?
• When can it be reserved?
• How long does the reservation last?
• What must happen to retain it?

Do not assume it will or will not.

Ask the lender about additional approvals, documents, education, and funding deadlines. Your team should confirm that the program can fit the proposed contract timeline before relying on it.

Depending on the agreement, those events may trigger repayment or affect forgiveness. Before accepting assistance, ask about:

• Required occupancy period.
• Remaining balance.
• Repayment triggers.
• Forgiveness schedule.
• Refinancing restrictions or approvals.

Request the actual terms in writing.

Ask what specifically prevented approval.

Your next step may involve credit, savings, debt, income documentation, a different property, or a later timeline. Not qualifying for one program does not automatically rule out every mortgage or assistance option.

Chuma can help you understand the homebuying steps, explore potential assistance resources, and connect with participating lenders.

Together, you can discuss your goals and look for properties that fit your needs and verified financing. The lender and program provider make the financing and assistance decisions — you don't have to figure out the process alone.