Down Payment Assistance (DPA) Programs

First Residential has teamed up with several national partners to provide our homebuyers with down payment assistance options. Here's a quick comparison of our DPA options:

How Does Down Payment Assistance Work?

A mortgage's initial down payment and closing costs often pose the biggest barriers to buying a home. Down payment assistance can help bridge that gap, spreading the costs associated with a mortgage out over several years rather than requiring cash up front. For many qualifying homebuyers, this could be the key to making a new home attainable.

However, there are various types of DPA programs, and some are more beneficial than others. Here are the most common kinds of down payment assistance and their payment structures:

Grants

• Free money for down payment or closing costs

• No repayment required if program requirements are met.

Forgivable Loans

• Structured as a second mortgage.

• Forgiven after a set period (e.g., 5–15 years).

• Repayment required if you sell, refinance, or move out early.

Deferred-Payment Loans

• Second mortgage with no monthly payments.

• Full balance due when you sell, refinance, or pay off your first mortgage.

Repayable Loans (Amortizing)

• Second mortgage with monthly payments.

• Repaid over a set term, often at low or zero interest.

REDCO Forgivable DPA For FHA Loans

This program, offered through the Rosebud Economic Development Corporation (REDCO), helps eligible FHA borrowers with the upfront fees associated with their purchase.

Eligibility & DPA Requirements

• Eligible loan types: Available for FHA purchase loans on a primary residence (1–2 units)

• Financing allowance: The first mortgage can cover up to 96.5% of the home’s value, and when combined with DPA, financing can reach 100% of the purchase price.

• Minimum credit score: 660

• Loan amount must be within the local HUD county limit

• Not available in: New York

• Loan structure: 30-year fixed-rate first mortgage

Assistance & Forgiveness Details

This program provides 3.5% of the home’s purchase price or appraised value (whichever is less) as a forgivable second loan. The assistance carries 0% interest and no monthly payments, making it easier to manage your upfront costs.

After 5 years, the second loan is fully forgiven as long as you have made your first 60 payments without any 90-day delinquencies and have continued to use the property as your primary residence.

Lakeview National DPA For Conventional Loans

Lakeview National’s Down Payment Assistance program provides a secondary loan to help eligible borrowers with conventional mortgages. The goal is to make homeownership more accessible by reducing upfront costs and giving borrowers extra flexibility when purchasing a home.

Eligibility & DPA Requirements

• Eligible loan types: conventional purchase loans on primary residences

  • Including HomeReady® and Home Possible®

• Minimum credit score: 660

• Borrower income limit: ≤ 140% of Area Median Income (AMI)

• Loan structure: interest-only, fixed-rate second lien with a 30-year term

Be sure to review conventional loan qualification requirements, as they may affect your eligibility.

Assistance Details

This program provides up to 4% of the home’s sales price or appraised value (whichever is lower) through a secondary loan. The funds are applied to your down payment first, with any remaining amount available for closing costs. The assistance comes as an interest-only, fixed-rate second lien with a 30-year term. While you won’t pay down the principal during the term, the remaining balance is due in full when you sell, refinance, transfer the property, or pay off your first mortgage.

*Not available in Phoenix/Maricopa County (AZ) or Cook County (IL).

Essex DPA for FHA Loans

The Essex Down Payment Assistance program helps FHA borrowers cover upfront costs such as the down payment, closing costs, or a combination of both. This program is designed to make homeownership more accessible for borrowers who may not have sufficient savings for these expenses.

Eligibility & DPA Requirements

• Eligible loan types: FHA purchase loans on a primary residence (1–2 units)

• Maximum loan amount: $806,500 (2025 limit) or HUD county limit, whichever is lower

• Minimum credit score: 660

• Not available in: New York or Washington

• Restrictions: Cannot be combined with other offers or applied to past/closed loans

• Loan structure: fixed-rate second loan amortized over 10 years

Assistance Details

This program provides up to 3.5% of the home’s purchase price or appraised value (whichever is lower) in the form of a fixed-rate second loan. The loan is amortized over 10 years with monthly payments, and borrowers can pay it off early without penalty.

However, if you sell, refinance, or otherwise pay off the first mortgage, the remaining balance of the second lien becomes due immediately.

Ready to get started?

Learn more about the different mortgage types if you’re unsure which loan type best suits you, or get started online to check your eligibility.