Mortgage Article

For many aspiring homeowners, the biggest hurdle isn’t the monthly mortgage—it’s the up front cash needed for a down payment and closing costs. In 2025, a growing network of down payment assistance programs is helping bridge that gap, making homeownership more accessible than ever.

What Is Down Payment Assistance?

Down payment assistance (DPA) programs provide grants, forgivable loans, or low interest loans to cover part - or sometimes all - of a buyer’s down payment and related costs. While traditionally aimed at first time buyers, many programs now extend eligibility to repeat buyers who haven’t owned a home in the past three years.

Common Types of DPA

• Grants – Gifted funds that never need to be repaid.

• Forgivable Loans – Second mortgages forgiven after a set period if you stay in the home.

• Deferred Loans – No payments until you sell, refinance, or move.

• Low Interest Loans – Paid back monthly alongside your main mortgage.

Why 2025 Is a Breakthrough Year

With median U.S. home prices climbing to $369,000 in Q2 2025 and mortgage rates hovering near 6.8%, affordability challenges are pushing more buyers toward DPA. Lenders and policymakers are also expanding these programs to cover:

• Manufactured homes (over 1,000 programs now allow them)

• Multi family properties like duplexes and triplexes

• New construction purchases

How to Get Started

1. 1. Check Eligibility – Income limits, location, and first‑time buyer status vary by program.
2. 2. Complete Homebuyer Education – Many programs require a certified course.
3. 3. Work With Approved Lenders – Only certain lenders can offer specific DPA funds.
4. 4. Apply Early – Funds can be limited and competitive.