🏠 Can You Really Buy a Home With No Money Down?
💬 Do I Have to Pay Back My Down Payment Assistance?
Not all help is the same — here’s how to find the right fit for your homebuying journey.
Types of down payment assistance are crucial for homebuyers navigating the market.
Understanding the types of down payment assistance can make your homebuying process smoother.
Different types of down payment assistance programs cater to various needs.
Down Payment Assistance (DPA) can be a game-changer — but with so many program types out there, it’s easy to get overwhelmed.
Explore the various types of down payment assistance available to you.
👉 Some are free. Some are loans. Some are only available in specific areas or for specific buyers.
Let’s delve into the different types of down payment assistance that can help you achieve homeownership.
There are several types of down payment assistance options that you should consider.
So what’s the difference — and how do you know which one is right for you?
Here are the 3 most common types of down payment assistance, how they work, and who’s most likely to qualify.
✅ 1. Grants (Free Money You Don’t Pay Back)
This is the gold standard — and yes, it’s real.
Identifying the right types of down payment assistance can significantly impact your homebuying journey.
Each of the types of down payment assistance has its own requirements and benefits.
Grants are funds you can use for:
- Down payment
- Closing costs
- Sometimes both
The best part? You don’t repay it. Ever.
📘 Common Requirements:
- First-time homebuyer status (or no ownership in 3+ years)
- Income limits based on area and household size
- Must use the home as a primary residence
- Complete a homebuyer education course
💡 Ideal For:
- Buyers with limited savings
- Low-to-moderate income households
- Buyers purchasing in “targeted areas”
✅ 2. Forgivable Loans (Only Repaid If You Move Too Soon)
These are second mortgages — but with a twist.
You borrow a set amount (like 3% of the purchase price) and if you stay in the home long enough, the loan is forgiven entirely.
Consider the types of down payment assistance that align with your financial situation.
Usually forgiven over 3–10 years, depending on the program.
📘 Common Requirements:
- Live in the home for the required period
- Make on-time payments on your main mortgage
- Sometimes subject to income limits
💡 Ideal For:
- Buyers planning to stay put for a few years
- People who can qualify for the mortgage but need help getting in
- Anyone who likes the idea of earning forgiveness over time
✅ 3. Deferred or Low-Interest Loans
These are loans you do repay, but not right away.
Some are:
- Deferred until you sell or refinance
- Paid off over time with very low interest
- Structured as silent second mortgages (no payments while you live there)
These loans increase your flexibility while keeping payments manageable.
📘 Common Requirements:
- Standard credit and income qualifications
- Often paired with FHA, VA, or conventional loans
- May limit maximum home price or purchase area
💡 Ideal For:
Exploring the types of down payment assistance could open doors to homeownership for you.
- Buyers with some savings but not enough
- Higher-cost markets where grants are limited
- Buyers who plan to stay 3+ years but may eventually move
🧠 Which Program Is Right for You?
That depends on:
- Your income
- Your credit
- Your location
- How long you plan to live in the home
- Whether you’re a first-time buyer
✅ At PRMI, we do a quick DPA assessment with every pre-approval — no separate application, no extra stress. Knowing the types of down payment assistance will help you make informed decisions.
🏢 Why PRMI?
We help homebuyers:
- Discover which programs they’re eligible for
- Choose between grants, forgivable loans, and silent seconds
- Layer DPA with FHA, VA, or conventional loans
- Navigate the full process from application to keys
Your dream of homeownership isn’t too far — you might just need the right tool to reach it.
👇 Want to See Which Down Payment Assistance Program You Qualify For?
We’ll do a quick review and match you with the best options in your state — no obligation, just clarity.
Whether you need grants or loans, knowing the types of down payment assistance is essential.
Types of down payment assistance can vary widely, so choose wisely.
Understanding all the types of down payment assistance is crucial for successful homebuying.
Reach out today to discover the types of down payment assistance that may work for you.