Planning to purchase a home? You may wonder “Can you get down payment assistance with a conventional loan?” You can. In fact, you can apply for down payment assistance (DPA) through many different programs. Though each option varies by location, some can offer minimal assistance, while others provide much more.

For instance, in Seattle, you can receive an interest-free loan of up to $55,000. If you’re a New York City resident, you could qualify for $100,000 if you live in your home for 10 to 15 years. And in Iowa, can apply for a $2,500 down payment and closing cost grant.

Read on to find out how you can get down payment assistance with a conventional loan.

What is a conventional loan?

A conventional loan or mortgage is one not backed by a government entity, such as the Federal Housing Administration (FHA), U.S. Department of Agriculture (USDA), or U.S. Department of Veterans Affairs (VA). Instead, loans are available through private lenders, such as banks, credit unions, or mortgage companies as well as Freddie Mac and Fannie Mae.

What is down payment assistance?

Grants or low-to-no-interest second loans are available to help you access funds for your down payment, relieving the stress of producing an initial extra chunk of change and making the dream of homeownership easier to achieve. These DPA programs exist on state, county, and city government levels.

How does down payment assistance work?

DPA grants, which are typically applied at closing, will show up as a credit on your closing statement. For a DPA second loan, you will actually close on this smaller loan—which covers your down payment—at the same time you close on your primary home loan. In general, you’ll pay back your DPA loan with monthly installments alongside your regular mortgage payments. However, you may also be able to defer your second mortgage repayment until you satisfy your first mortgage or move, sell, or refinance the property.

How do I qualify for down payment assistance?

Every DPA program is a bit different. Your program’s criteria will depend on where you live and what programs are available in your area. DPA is typically reserved for first-time homebuyers; however, you may be eligible if you’re a repeat buyer who hasn’t owned a home in the last three years. Some programs are also open to veterans. Other requirements may include the following:

Additionally, some programs may even offer additional assistance or an increased level of aid if you purchase a home in certain areas.

If you’re ready to purchase property and want more information about how you can get down payment assistance with a conventional loan, reach out to an OVM Financial expert. You can also check out our blog about other topics including Chenoa Fund guidelines and how to purchase a home with low income.

Planning to purchase a home? You may wonder “Can you get down payment assistance with a conventional loan?” You can. In fact, you can apply for down payment assistance (DPA) through many different programs. Though each option varies by location, some can offer minimal assistance, while others provide much more.

For instance, in Seattle, you can receive an interest-free loan of up to $55,000. If you’re a New York City resident, you could qualify for $100,000 if you live in your home for 10 to 15 years. And in Iowa, can apply for a $2,500 down payment and closing cost grant.

Read on to find out how you can get down payment assistance with a conventional loan.

What is a conventional loan?

A conventional loan or mortgage is one not backed by a government entity, such as the Federal Housing Administration (FHA), U.S. Department of Agriculture (USDA), or U.S. Department of Veterans Affairs (VA). Instead, loans are available through private lenders, such as banks, credit unions, or mortgage companies as well as Freddie Mac and Fannie Mae.

What is down payment assistance?

Grants or low-to-no-interest second loans are available to help you access funds for your down payment, relieving the stress of producing an initial extra chunk of change and making the dream of homeownership easier to achieve. These DPA programs exist on state, county, and city government levels.

How does down payment assistance work?

DPA grants, which are typically applied at closing, will show up as a credit on your closing statement. For a DPA second loan, you will actually close on this smaller loan—which covers your down payment—at the same time you close on your primary home loan. In general, you’ll pay back your DPA loan with monthly installments alongside your regular mortgage payments. However, you may also be able to defer your second mortgage repayment until you satisfy your first mortgage or move, sell, or refinance the property.

How do I qualify for down payment assistance?

Every DPA program is a bit different. Your program’s criteria will depend on where you live and what programs are available in your area. DPA is typically reserved for first-time homebuyers; however, you may be eligible if you’re a repeat buyer who hasn’t owned a home in the last three years. Some programs are also open to veterans. Other requirements may include the following:

Additionally, some programs may even offer additional assistance or an increased level of aid if you purchase a home in certain areas.

If you’re ready to purchase property and want more information about how you can get down payment assistance with a conventional loan, reach out to an OVM Financial expert. You can also check out our blog about other topics including Chenoa Fund guidelines and how to purchase a home with low income.