The Down Payment Assistance Advantage

July 21, 2021

Saving for a down payment can be one of the most significant barriers to homeownership, especially when limited housing inventory continues to fuel purchases at list price or even higher. DPA Advantage could provide you and your buyers with an advantage.

As down payment assistance in the form of a forgivable grant, DPA Advantage is available for a wide range of eligible borrowers. The grant is equal to either 2% or 3.5% of the home price on eligible FHA purchases and could help qualified borrowers purchase a home sooner than they thought! The grant can be used in conjunction with many FHA loan programs, like the FHA 203(b) program and many FHA renovation programs, as well as the FHA One-Time Close loan, combining construction costs and the mortgage into a single loan.

At AFR Wholesale, the DPA Advantage grant may also be combined with up to 6% seller concessions for closing costs.

Plus, now the 3.5% grant (lender paid option) can be used as a true “no money down” solution (ask us how!).

Other advantages of DPA Advantage include no repayment restrictions, no need for a second lien, and we coordinate the application, approval, and wiring of the funds.

Not only can DPA Advantage help first-time and moderate-income homebuyers, but down payment assistance is also available to hometown heroes, including first responders, healthcare workers, teachers and military personnel.

Eligible borrowers include individuals who are current, retired, volunteer, or plan to become:

– First responders – police officer, firefighter, public safety officer, paramedic, or emergency medical technician (EMT)

– Educators

– Medical personnel – nurse, doctor, phlebotomist, health ambassador, American Red Cross worker, or similar

– Civil servant in a federal, state, or local municipality

– Military personnel

Borrowers may also qualify for down payment assistance if the property is located in an eligible underserved census tract (Zip Code Lookup Tool).

Plus, DPA Advantage is listed inside Down Payment Resource, which works with Housing Finance Agencies (HFAs), MLSs, Realtors and lenders to get more buyers into homes. For a monthly fee, Down Payment Connect allows mortgage professionals to receive leads from consumers who visit looking for down payment assistance programs in their area. Brokers can also visit the site to compare programs.

Buying a home may be the biggest purchase your borrowers ever make, and a little help goes a long way, especially in such a competitive purchase market. With DPA Advantage, you can provide an affordability advantage to help bring more families home.

Learn more about DPA Advantage today!

Photography by [fizkes] ©

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