Down Payment Assistance (DPA) for Homebuyers

If you can afford a mortgage payment but feel stuck on the down payment, you’re not alone. Many buyers in California and Georgia use down payment assistance (DPA) to bridge the gap and get into a home sooner.

This page explains how DPA works, how programs like CalHFA and Georgia Dream fit into the picture, and how assistance layers with loan types such as FHA, Conventional, and sometimes VA.

What Is Down Payment Assistance?

Down payment assistance helps cover part of your required down payment and/or closing costs. It’s usually used with a standard first mortgage like those on the Home Purchase Loans page.

Common forms of DPA include:

  • Grants: Funds that do not need to be repaid if program rules are followed.
  • Deferred second mortgages: No monthly payment; repaid later (sale, refinance, or term-end).
  • Forgivable seconds: Balances that may be forgiven over time if you stay in the home.
  • Low-interest seconds: A small second loan with a set payment to reduce cash-to-close.

State-Focused Programs: California & Georgia

California – CalHFA & Local Programs

In California, buyers often explore options such as:

Georgia – Georgia Dream & Local Help

In Georgia, many buyers look at:

  • Georgia Dream: Popular statewide DPA program for eligible buyers, often paired with FHA or Conventional loans.
  • Metro Atlanta-focused assistance: Certain local programs and employer-based benefits for Metro Atlanta buyers.

Program availability and details change over time, so we’ll always verify current options and guidelines when we review your file.

Who Is Down Payment Assistance Designed For?

Each program is different, but many are aimed at buyers who:

  • Are first-time buyers (often defined as no ownership in the last 3 years)
  • Meet income and purchase price limits for their area
  • Will live in the home as a primary residence
  • Complete a homebuyer education course (in many cases)

Even if you’ve owned a home before, you may still qualify under “first-time buyer” rules if it’s been long enough. We’ll confirm how each program defines it.

Pros and Trade-Offs of Using DPA

Benefits:

  • Reduce the cash needed to close on your home
  • Enter the market sooner instead of saving for years
  • Preserve savings for emergencies or future repairs

Trade-Offs:

  • Some programs may have higher interest rates than standard loans without DPA
  • Second liens or repayment conditions if you move or refinance
  • Extra documentation and education requirements

Part of our job is to compare “with DPA” versus “without DPA” so you can see if the trade-off is worth it for your situation.

How DPA Fits With Your Loan Type

DPA is usually layered with these loans:

  • FHA Loans – Often the most common pairing with DPA.
  • Conventional Loans – Some programs allow 3% down with assistance.
  • VA Loans – Occasionally used for closing cost help, even though VA can be zero-down.

For more on which loan might fit you best, see the Loan Comparison Guide and First-Time Homebuyer Programs pages.

Next Steps: Check Your DPA Eligibility

We’ll review your income, credit, price range, and location in California or Georgia to see:

  • Which DPA programs might fit
  • What your estimated cash-to-close would be with and without assistance
  • How the monthly payment and long-term costs compare
Check My Down Payment Assistance Options

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