Understanding Down Payment Assistance: What You May Qualify For
Buying a home is one of the biggest financial milestones most people reach — but saving for a down payment can feel like a major hurdle. The good news? You may not have to do it alone.
Down payment assistance (DPA) programs exist to help homebuyers overcome upfront cost barriers and get into a home sooner than they may have thought possible. If you’ve been putting off homeownership because of savings, it’s worth learning what support might be available to you.
What Is Down Payment Assistance?
Down payment assistance refers to grants, loans, and financial tools that help cover part or all of your required down payment. Some programs even help with closing costs. These options can reduce the amount of money you need to bring to the table — sometimes by thousands of dollars.
Assistance may come in the form of:
- Grants: Money you don’t have to repay
- Forgivable loans: Loans that are waived after a period of time if certain conditions are met
- Deferred loans: Loans you repay only when you sell, refinance, or pay off your mortgage
- Matched savings programs: Where your savings are matched by the provider up to a certain limit
Do You Qualify?
Eligibility varies by program, but you may qualify based on factors like:
- Your household income
- Your credit score or debt-to-income ratio
- The location and price of the home
- Whether you’ve owned a home in the last 3 years
While every program is different, a typical minimum credit score is 640, and most programs require your debt-to-income ratio to be 41% or lower. That said, don’t assume you’re disqualified if you fall outside those guidelines, there may still be options available.
Even if you think you earn too much, or aren’t a first-time buyer, don’t count yourself out. Many employees are surprised to find they qualify for assistance they didn’t know existed.
Who Offers These Programs?
While many organizations offer down payment assistance, it’s important to work with someone who knows the landscape and is committed to helping you access every benefit available.
Unfortunately, many lenders don’t promote DPA programs because they require more paperwork, and the lender earns less money on them. That’s why it’s especially helpful to work through your Employee Homeownership Program. Your Homeownership Advisor is trained to help you find down-payment assistance programs you may qualify for, and they're here to support you every step of the way.
How Much Could You Get?
Many programs offer assistance ranging from $5,000 to over $20,000, depending on your location, income, and loan type. Some employees using their homeownership benefit have reduced their out-of-pocket costs by up to 90% when combining down payment assistance with reduced closing costs available through your Employee Homeownership Program.
Your Path Starts Here
If saving for a down payment has held you back, this is your chance to change that. Through your Employee Homeownership Program, you have access to a financial fitness consultation — where you’ll find out:
- Exactly how much down payment you’ll need
- Whether you’re eligible for assistance
- What loan programs fit your financial picture
- How to improve your credit or financial profile to open new doors
This isn’t just about getting help. It’s about getting smart guidance and a plan that makes homeownership feel possible, because it is.
Ready to see what you qualify for?
Schedule your free consultation today and find out what support and savings are available to you.
SupportSquad@AdvantageHomePlus.com | (800)511-2197
The information contained and the opinions expressed in this article are not intended to be construed as investment advice. Advantage Home Plus does not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. * Real estate commission contributions are available as state laws allow.
Category: Homebuyers
