What is down payment assistance?
Answered by Onias Derilus, Mortgage Capital · NMLS# 1859012 · Florida licensed mortgage broker
Down payment assistance (DPA) is a program that helps cover your down payment and sometimes closing costs, often as a 0%-interest second mortgage that's deferred or forgivable. Florida's Hometown Heroes is a leading example.
DPA pairs with an FHA or conventional first mortgage and is usually limited to first-time buyers under county income caps. We'll confirm eligibility and stack it onto your loan.
The basics of assistance
Down payment assistance, or DPA, is help covering the upfront cash to buy a home. It usually comes as a grant you never repay or a second loan with easy terms. The money goes toward your down payment, your closing costs, or both.
In Florida, most DPA comes through Florida Housing programs and local county funds. You pair it with a regular first mortgage such as FHA, VA, USDA, or conventional.
Who it helps and how much
DPA is built for buyers who earn a steady income but have not saved a big lump sum. Programs like Florida Hometown Heroes offer up to 5% of the loan amount toward your costs.
Most programs want you under a county income limit and finished with a short homebuyer class. Reach out and we will check which DPA you qualify for and stack it with the right loan.