Mortgage Glossary
Down Payment Assistance
Defined by Onias Derilus, Mortgage Capital · NMLS# 1859012 · Florida licensed mortgage broker
Down payment assistance (DPA) is a grant or second loan that helps cover the upfront cash a homebuyer needs to close.
What Down Payment Assistance means
Programs come as grants, forgivable loans, or deferred second mortgages. Florida's Hometown Heroes program, for example, offers up to $35,000 as a 0% deferred second mortgage for eligible buyers.
Florida example
A Florida first-time buyer pairs an FHA loan with $25,000 in DPA, turning a $15,000 out-of-pocket requirement into almost nothing down. Income limits and a homebuyer education course usually apply.
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