Special Programs

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Down Payment Assistance Programs:

Down payment assistance (DPA) programs are financial aid options—often grants or low-interest loans—designed to help homebuyers cover the upfront costs of purchasing a home, including down payments and closing costs. Usually targeted at first-time or low-to-moderate-income buyers, these programs are provided by state housing agencies, local governments, and nonprofits. 

  • Grants: Funds that do not need to be repaid.
  • Forgivable Loans: Loans that are forgiven if the borrower stays in the home for a certain number of years.
  • Deferred-Payment Loans: Loans with repayment delayed until the home is sold, refinanced, or paid off.
  • Matched-Savings Programs: Programs that match savings from an individual development account (IDA).
  • Shared-Equity Models: The homebuyer receives funds in exchange for sharing a portion of the home’s appreciation upon resale. 

Key Details on DPA Programs

  • Eligibility: Many programs require you to be a first-time homebuyer (not owning a home in the last 3 years), meet income limits based on the area, and occupy the home as a primary residence.
  • Sources: There are over 2,000 programs nationwide, including state housing finance agencies, city-specific grants (e.g., Detroit), and bank-sponsored programs.
  • Amount: Assistance can range from small amounts to significant help, with some programs offering up to $25,000 or a percentage of the mortgage amount.
  • Requirements: DPA often requires homebuyer education classes and a minimum credit score (often around 640 or higher).
  • Usage: Funds can usually be combined with FHA, VA, USDA, or conventional loans. 

State or Local Housing Agencies

The “Homegrown Help” Program
Backed by your county or state, these programs are designed for first-time buyers, everyday heroes like teachers and first responders, and folks with modest incomes. Local love, big support.

Special Purpose Credit Programs

The “Community Boost” Program
Offered by private lenders to support low- to middle-income borrowers in specific neighborhoods. Tailored lending that helps build stronger, more inclusive communities.

Frequently Asked Questions

Find answers to common questions below

A1: Down Payment Assistance Programs are financial aid options, such as grants or low-interest loans, designed to help homebuyers cover upfront costs like down payments and closing costs. These programs are often targeted at first-time or low-to-moderate-income buyers and are provided by state housing agencies, local governments, and nonprofits.
A2: Down Payment Assistance Programs are typically aimed at first-time homebuyers or those with low to moderate income levels. These programs help these buyers manage the initial costs of purchasing a home.
A3: Down Payment Assistance Programs are available through state housing agencies, local governments, and nonprofit organizations. The availability may vary depending on the region and specific program guidelines.
A4: You can contact Clifton Arrington LO via email at clifton@arringtonloans.com or by phone at 408-460-1706. The office is located in Houston-Kingwood.