DPA programs let buyers who think they cannot afford a home buy one. Realtors who actively use DPA close more first-time buyer files. Here is the reference.
Down payment assistance unlocks buyers who would otherwise be priced out of an offer: strong income, decent credit, just not enough cash.
Chenoa Fund is the most common DPA we run: a 3.5% second lien covering an FHA loan's down payment. Repayable on standard terms. Available in our six licensed states.
If your buyer is close on income and credit but short on cash, send them in. We'll tell you in the first conversation whether DPA is the unlock.
The biggest barrier to first-time homeownership in most markets is down payment, not monthly payment. Down payment assistance programs solve that. Realtors who actively use DPA programs close more first-time buyer files than agents who don't.
The math: a buyer who can afford a $2,800/month payment but has only $5,000 saved is not actually priced out. They're priced out of conventional 5%-down. With a DPA second lien covering down payment and closing costs, they can buy on FHA terms with effectively no cash out of pocket. The monthly payment looks identical to a buyer who put down 5% in cash.
The buyer who walked away after running the numbers themselves is a buyer you couldn't help. Send them to us. We run the DPA scenarios per file and tell you within a day whether the deal works.
DPA is fragmented. Hundreds of programs exist across federal, state, county, and city levels. The ones below are the ones we run most often.
Most DPA structures involve a first mortgage (FHA, conventional, or VA) plus a DPA second lien that covers some or all of the down payment and closing costs. Here's the common structure.
DPA programs have specific eligibility (income limits, sales price limits, occupancy requirements, sometimes first-time buyer rules). The rates on the first mortgage are usually slightly higher than market rates. The total monthly payment with the second-lien repayment is sometimes higher than a market-rate conventional with normal down payment. The trade-off is that the buyer is buying now instead of saving for two more years to put down 5%. In appreciating markets, this trade-off almost always favors buying.
When a buyer says "I can't afford it," they usually mean "I can't afford the down payment." Send them to us with whatever budget they have. We'll tell you within a day whether DPA makes the deal possible.
DPA programs have rules. Here are the most common ones that affect whether a buyer qualifies.
| Eligibility | Typical rule | Notes |
|---|---|---|
| Income limits | Usually 80%-140% of area median income (AMI) | Higher for "non-targeted" census tracts. Some programs have no income limit (Chenoa). |
| Sales price limits | Often capped at HUD area median or specific dollar amount | Varies by county. Can be limiting in high-cost markets like coastal CA. |
| First-time buyer | Most programs require "no ownership in past 3 years" | Definition is federal HUD definition, not literal first-time. |
| Occupancy | Must be primary residence | No investment properties on DPA programs. Buyer must occupy within 60 days. |
| Credit minimums | 620 typical floor, some programs 580 | Compensating factors can flex this slightly. |
| Education | Many programs require homebuyer education course | Online courses available. Approximately 8 hours, can be completed in a weekend. |
Working with the studio means working with Geoffrey. Phone goes to a phone. Email goes to an inbox that gets read. The file is worked by the same loan officer from application to closing.
