Do You Qualify for Down Payment Assistance?
For many homebuyers—especially first-timers—the biggest hurdle to owning a home isn’t the monthly mortgage payment. It’s coming up with the down payment. The good news? You may not have to do it alone. There are numerous down payment assistance (DPA) programs that can help reduce or even eliminate this upfront cost.
At First Union Home Finance, we specialize in helping buyers discover the financial tools that make homeownership possible—starting with assistance programs designed to lighten the financial load from day one.
Understanding Down Payment Assistance
Down payment assistance programs offer financial support to qualified homebuyers who need help covering the initial cost of purchasing a home. These funds are typically reserved for buyers who meet certain income and eligibility guidelines and may be offered in several forms, such as:
- Grants that do not need to be repaid
- Deferred or forgivable loans that may be forgiven after a few years of ownership
- Low-interest loans used in combination with your primary mortgage
Programs like these are often available through state housing agencies, local governments, nonprofit groups, and sometimes even through employers or private organizations. They can also help with related expenses like closing costs.
Are You Eligible?
The criteria for down payment assistance will vary depending on where you live and the program you’re applying for. That said, most programs share some common requirements:
Income Guidelines
Most DPA programs are aimed at helping low- and moderate-income buyers. This usually means your household income must fall below a certain threshold based on the area median income (AMI) where you plan to buy.
Homebuyer Status
While many programs are designed for first-time buyers, that doesn’t always mean you’ve never owned a home. In most cases, if you haven’t owned a primary residence in the past three years, you still count as a first-time buyer.
Credit and Financial Health
You’ll generally need a minimum credit score—often 620 or higher—to qualify. However, some programs are more flexible and may allow for alternative credit histories or lower scores.
Home Price Limits
Assistance is typically capped to homes below a certain purchase price. These limits are determined by location and are in place to ensure support is going toward affordable housing options.
Primary Residence Only
Down payment assistance is usually only available for homes that will serve as your main residence. Investment properties and vacation homes are not eligible.
Education Requirements
Some programs ask that you complete a homebuyer education course. These classes cover budgeting, mortgage terms, and the responsibilities of owning a home—valuable knowledge for any buyer.
Location-Specific Rules
Some assistance programs are limited to certain cities, counties, or even neighborhoods. Your eligibility may increase depending on where you plan to purchase your home.
How First Union Home Finance Can Help
Trying to navigate all the available DPA options on your own can be overwhelming—but you don’t have to go it alone. At First Union Home Finance, we stay current on the latest down payment assistance programs and help match our clients to the ones that best fit their situation. Whether you’re buying your very first home or getting back into the market, our team is here to guide you through the process from start to finish.
We work with a wide range of programs, including local and statewide options, national grants, and occupation-specific offerings for teachers, first responders, veterans, and more.
Your Path to Homeownership Starts Here
If saving for a down payment has been holding you back, it’s time to explore your options. With down payment assistance, the home of your dreams might be closer than you think.
Reach out to First Union Home Finance today to learn more about the programs available in your area—and find out if you qualify. Our team is ready to help you take the next step toward owning your home.
