Down Payment Assistance

Down Payment Assistance

Down payment assistance (DPA) programs provide financial help—in the form of grants or second mortgages — to cover all of a homebuyer’s down payment and sometimes closing costs (when the purchase agreement is structured properly).

Reasons to choose a down payment assistance loan

DPA loans help meet minimum down payment requirements faster allowing you to purchase a home, rather than delaying to save.

30-year FHA DPA mortgage guidelines

To qualify for a 30-year FHA DPA mortgage, you will need:

Stable income (2-years is recommended)
620 minimum credit score
Flexible debt-to-income guidelines compared to conventional loans
1-2 unit properties, condos and manufactured homes* (allowable, but require 640 minimum credit score)
Not required to be a 1st time homebuyer
Cannot have an existing FHA loan

 Purchase price limits are $541,287 for single-family homes in most of the country, but are up to $1,249,125 in high costs areas (ex. NYC, Long Island, DC, Alaska & Hawaii)

Apply for a FHA DPA mortgage

This DPA program is available nationwide, except NY and DE.

The second lien is forgivable if there is no 90 day or greater delinquency on the first 60 payments of the underlying
first lien and property remains a primary residence. The loan canot be re-subordinated

Have additional questions?

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Applicant subject to credit and underwriting approval. Not all applicants will be approved for financing. Receipt of application does not represent an approval for financing or interest rate guarantee. Refinancing your mortgage may increase costs over the term of your loan. Restrictions may apply. Savings, if any, vary based on the consumer’s credit profile, interest rate availability, and other factors. Contact Scout Advisors for current rates. Restrictions apply.