Definition
DPA grants provide non-repayable down payment and closing cost assistance from government agencies and nonprofits. Amounts vary ($1,000-$50,000+) depending on program and circumstances. Many grants are forgivable if you occupy the home for specified periods.
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DPA grants (as opposed to loans) provide non-repayable assistance for down payments and closing costs. Grant amounts vary widely: $1,000-$50,000+ depending on program and borrower circumstances. DPA programs are funded through HFAs, HUD grants, Community Development Block Grants, and nonprofits. Some programs require counseling participation or specific loan programs. Many DPA programs are forgivable if the borrower occupies the home for a specified period (3-5 years). DPA grants are critical for first-time buyers who have saved insufficient down payments.
Pro Tip
Research all DPA programs in your area; you may qualify for multiple grants, significantly reducing your out-of-pocket costs.
Example
A nonprofit provides a $20,000 DPA grant (non-repayable) to a first-time buyer for down payment and closing costs, making homeownership affordable.