A Little Help Getting Home
Saving for a down payment can be one of the biggest hurdles to homeownership. Down payment assistance (DPA) programs can help eligible buyers cover some or all of their required down payment, making the path to owning a home a little more manageable.
How Does Down Payment Assistance Work?
Down payment assistance isn't a single loan program. It refers to a variety of programs designed to help eligible homebuyers cover all or a portion of the down payment needed to purchase a home.
Programs are offered by state and local housing agencies, government entities, and other organizations, each with its own benefits, eligibility requirements, and funding structure.
Repayable vs. Forgivable Assistance
Some programs provide funds through a second mortgage that requires repayment, sometimes with monthly payments. Others offer forgivable assistance, which may not need to be repaid if you meet specific requirements.
Do You Have to Be a First-Time Homebuyer?
Not necessarily. While some down payment assistance programs are designed for first-time buyers, others are available to eligible repeat homebuyers.
Qualification may depend on your credit, income, property location, loan type, and other program requirements. Your Benchmark loan officer can help determine which options may fit your situation.
Down Payment Assistance by Location
Available programs can vary depending on where you're buying. State housing agencies, cities, counties, and even local organizations may offer assistance to eligible members of their communities. These programs may consider factors like income, property location, or other qualifying requirements.
Things to Know
- Repayable or forgivable
- Not always
- State, local & other programs
- Down payment & closing costs
- Often required
Ready to talk?
A loan officer who knows the programs in your area, and will tell you plainly which ones you may qualify for.
Disclaimer: Ark-La-Tex Financial Services, LLC d/b/a Benchmark Mortgage – NMLS ID #2143 (www.nmlsconsumeraccess.org) 5160 Tennyson Pkwy STE 1000, Plano, TX 75024. 972-398-7676. This advertisement is for general information purposes only, no guarantee is expressed or implied. Rates, terms, programs and underwriting policies subject to change without notice. This is not an offer to extend credit or a commitment to lend. All loans subject to underwriting approval. Not all applicants will qualify. Some products may not be available in all states and restrictions apply. (https://benchmark.us)
Programs available through Benchmark
Featured Down Payment Assistance Programs
Benchmark offers access to down payment assistance options designed to help eligible buyers overcome one of the biggest hurdles to homeownership.
Sapphire Down Payment Assistance
Sapphire offers eligible FHA homebuyers assistance toward their down payment and closing costs, helping make the upfront expenses of purchasing a home more manageable.
- Down payment and closing cost assistance
- FHA financing
- Repayable and forgivable options
- Eligible first-time and repeat homebuyers
- Non-occupant co-borrowers permitted
- Homebuyer education required
Chenoa Down Payment Assistance
Chenoa provides down payment assistance for eligible FHA borrowers, with repayable and forgivable options that offer different ways to manage the upfront costs of buying a home.
- Assistance of 3.5% or up to 5% of the purchase price, subject to program guidelines
- Repayable and forgivable options
- No first-time homebuyer requirement
- Eligible non-occupant co-borrowers permitted
- Homebuyer education may be required
Program availability, assistance amounts, and terms are set by each program and may change. Your loan officer can confirm current details for your location.
What Makes Down Payment Assistance Work for You?
Assistance is about more than the down payment itself. Here's what buyers typically get from a program that fits.
- Help covering eligible down payment costs
- Repayable and forgivable assistance options
- Programs available beyond first-time homebuyers
- Potential assistance with closing costs
- Options through state, local, and other eligible programs
- Guidance from a Benchmark loan officer
A good fit if you…
- Have steady income but limited savings for a down payment
- Want to explore assistance with upfront homebuying costs
- Meet the credit and income requirements of an available program
- Are ready to buy but aren't sure how much cash you'll need
Probably not the right fit if you…
- Are purchasing a property that doesn't meet program requirements
- Don't meet the income, credit, or other eligibility guidelines
- Would rather not take on an additional loan or program requirements
- Have enough savings and want to compare other financing options
Get the answers first timers are looking for.
Can I combine down payment assistance with these programs?
Often, yes. Down payment assistance pairs most commonly with FHA and conventional HomeReady or Home Possible loans. Availability and amounts vary by state and program, so ask your loan officer what applies where you’re buying.
Is down payment assistance free money?
Not always. Some assistance is a second loan you repay, sometimes with monthly payments. Other assistance may be forgiven if you meet the program’s conditions, like living in the home or making on-time payments for a set period. Your loan officer will walk you through the terms of any program before you commit.
What happens if I sell or refinance?
Many programs require you to repay the remaining assistance if you sell the home, refinance, or pay off your first mortgage before a set date. Forgivable assistance may also become due if you stop meeting the program’s conditions. Review the repayment terms in your program documents before closing.
Will assistance change my monthly payment?
It can. Repayable assistance may come with its own monthly payment, which counts toward your debt-to-income ratio when you qualify. Deferred and forgivable assistance often has no monthly payment. Your loan disclosures show the terms of each loan.
Who provides down payment assistance?
Programs are offered by state and local housing finance agencies, cities and counties, nonprofit organizations, and some employers. On FHA loans, the seller, builder, real estate agent or other parties to the sale can’t provide your required minimum investment.
Do I have to take a homebuyer education course?
Many programs require one before closing, often through a HUD-approved housing counseling agency. Some courses are available at no cost. Your loan officer can tell you whether your program requires it.
Are there income or price limits?
Often, yes. Many programs set household income limits and maximum purchase prices that vary by county and household size. Others have no income limit. Eligibility rules are set by each program and can change.
Can I use assistance with a conventional loan?
In some cases. Fannie Mae allows certain assistance, called Community Seconds, from approved sources such as government agencies, housing finance agencies, nonprofits and employers. Availability depends on the program and where you’re buying.
Could I owe a tax if I sell later?
Possibly. If your loan is financed through a mortgage revenue bond program, or you receive a Mortgage Credit Certificate, a federal recapture tax may apply. It applies only if all three are true: you sell within nine years, your income has risen significantly, and you sell at a gain. You’ll receive a notice at closing. Talk with a tax advisor about your situation.
Let's Look at What's Available
There are many down payment assistance programs available, and finding the right option doesn't have to be complicated. Your Benchmark loan officer can help you explore available programs, understand the requirements, and decide what fits your goals.
Down payment assistance programs vary by location and are subject to funding availability, eligibility, and program requirements. Assistance may require repayment or forgiveness conditions. Loan approval is subject to credit and underwriting qualifications.