What Is Down Payment Assistance?

Down payment assistance (DPA) programs are designed to help eligible homebuyers cover the upfront costs associated with purchasing a home. Depending on the program, assistance may come in the form of: - Grants that do not require repayment - Deferred-payment loans - Forgivable loans - Closing cost assistance - Shared appreciation programs

Who Qualifies as a First-Time Home Buyer?

Many people are surprised to learn that "first-time home buyer" doesn't always mean you've never owned a home. In many California programs, you're considered a first-time buyer if you have not owned a primary residence within the last three years.

How Much Money Can You Receive?

The amount varies depending on the program and your qualifications. Some programs provide a few thousand dollars toward closing costs, while others can provide tens of thousands of dollars toward a down payment.

Do You Have to Pay the Money Back?

The answer depends on the program. ### Grants Some assistance programs provide funds that never have to be repaid. ### Deferred-Payment Loans Programs like CalHFA MyHome typically require repayment when you sell, refinance, or pay off the property. No monthly payments are required while you own the home. ### Shared Appreciation Programs Programs such as Dream For All require repayment of the original assistance amount plus a portion of future appreciation when the property is sold or refinanced.

What Credit Score Do You Need?

Credit score requirements vary depending on the loan and assistance program. Many programs require a minimum score in the low-to-mid 600s, although some may have higher requirements depending on the loan type and borrower profile.

Can Down Payment Assistance Be Combined With FHA or Conventional Loans?

Yes. Many California assistance programs can be paired with: - FHA loans - Conventional loans - VA loans (when eligible) - USDA loans (when eligible)

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Down Payment Assistance Programs for First-Time Home Buyers in California: What You Need to Know

Carie Gonzalez

Jun 1

4 min read

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