All About DPA's....
What is Down Payment Assistance (DPA) and how can it help you buy a home?
Let’s face it, saving enough money to buy a home can be difficult.
If you’re purchasing a home that is 300,000.00 and your down payment is 3% (First Time Homebuyer Conventional)
or 3.5% (FHA) then your looking at 9,000.00 to 10,500.00 plus closing costs which can run another 2% to 4% of the purchase price.
This is where a DPA can help you achieve your home purchase.
There are several different types of down payment assistance available:
Hometown Heroes – For Teachers, Law Enforcement, Firefighters, Medical workers and related professions.
Forgivable – The DPA amount is forgiven after a set number of years – 5, 10 etc
Non-Forgivable – Due at the end of your 30 year mortgage or when the home is sold or refinanced.
Some require a monthly payment others do not, all are second or even 3rd position mortgages
Grants – Some cities/counties have grants available.Â
Assistance is either a Percentage (3%, 3.5%, 4%, 5%) of the Purchase price or a set amount.
Most programs require that you be a First Time Homebuyer but not all.
This sounds great but what’s the catch?
- For forgivable DPA’s if you sell or refinance before the forgiveness period is satisfied the amount or a portion of the amount becomes due. For a refinance the amount due would be factored into your refinance and if you sell it would be due at closing.
- Same goes for Non-Forgivable  assistance – amount of assistance would be due when you refinance or sell the home.
- Interest rates can potentially be higher than if you used your own funds for the down payment.
DPA Programs :
Chenoa Fund – https://chenoafund.org
Florida Specific
- Florida Housing Finance Corporation – https://www.floridahousing.org/
- Tampa DARE program (Dare to Own the Dream) https://www.tampa.gov/housing-and-community-development/programs/mortgage-assistance
Texas
- TSAHC – https://www.tsahc.org/