A DPA program is any form financial aid that’s designed to reduce or eliminate the down payment that you usually need to submit when taking out a mortgage to purchase a house. There are two major types of DPA grants that you can look into...
Interest Free DPA (Down Payment Assistance)
This is a forgivable, deferred, 5 to 30 year 0% interest, no payment silent second, up to $75,000.00. Forgivable between 10 and 20 years. It’s designed to assist buyers with not only Down Payment Assistance but Closing costs as well. Restrictions apply but you don’t have to spend years saving up a large lump-sum payment before you start looking for a house.
Conditional DPA Grants
This is actually a type of second mortgage that you won’t have to pay back as long as you meet the terms of your home-buyer agreement, which will demand that you live in the home and keep it as your primary residence for a set period that’s determined by the individual program. At the end of the term of the first mortgage it becomes due (usually after thirty years). You make no payments and there is no interest.