Mortgage glossary
Down payment assistance (DPA)
Definition: Down payment assistance (DPA) is a grant, forgivable loan, or deferred second loan that helps eligible buyers cover a down payment and sometimes closing costs when buying a home.
DPA programs are offered by state housing agencies, cities, counties and some lenders. Each has its own rules on income limits, purchase price caps, credit scores, homebuyer education and whether the help must be repaid when you sell or refinance. Many can be paired with FHA, VA, USDA or conventional first mortgages.
In Texas, statewide agencies such as the Texas Department of Housing and Community Affairs and the Texas State Affordable Housing Corporation run programs, and some local governments offer their own. We offer down payment assistance options across all agency loan types.
Related terms
Reviewed by Kyle Richardson, NMLS #863464. General information, not advice for your specific situation. All glossary terms
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