DPA programs vary widely but generally fall into a few categories:

Grants: Some DPA programs offer grants that do not need to be repaid, providing free money towards the down payment and/or closing costs.

Low-Interest Loans: These are second mortgages offered at very low interest rates, which must be repaid over a set term. They can significantly lower the upfront costs of buying a home.

Deferred Loans: Deferred loans typically do not require repayment until the home is sold, refinanced, or the primary mortgage is paid off. These loans may carry zero interest or a low interest rate.

Forgivable Loans: These loans may be forgiven over a period of time, such as five to ten years, effectively turning into a grant if the homeowner remains in the home for that period. If the property is sold before the loan is forgiven, the loan may need to be repaid.

Eligibility for down payment assistance can vary by program but often includes:

Income Limits: Many programs have income limits to ensure assistance is provided to those who need it most, typically aimed at low- to moderate-income buyers.

First-Time Homebuyer Status: DPA programs frequently target first-time homebuyers, defined as someone who has not owned a home in the past three years. However, some programs are available to repeat buyers or specific professions, like teachers, first responders, and

healthcare workers

Education Courses: Applicants might be required to complete a homebuyer education course to qualify for assistance, ensuring they understand the financial and maintenance responsibilities of homeownership.

Primary Residence Requirement: The purchased home usually must be the buyer's primary residence.

Location: Many DPA programs are specific to certain areas, such as within particular cities, counties, or states.

Down payment assistance can come from various sources, including:

State Housing Finance Agencies: Provide statewide DPA programs with different terms and eligibility criteria.

Local and City Governments: Offer localized DPA programs to residents to encourage homeownership in their communities.

Nonprofit Organizations: Some nonprofits offer DPA programs, especially for low-income buyers or specific groups.

Lenders: Some private lenders have their own DPA programs or partnerships with government agencies to offer assistance.