Today we look at the truth about down payment assistance for a first time home buyer! Are down payment assistance programs a good way for a first time home buyer to buy a house? or should a first time home buyer avoid down payment assistance programs and explore other routes? Lets take a look at the different types of down payment assistance programs and some pros and cons of the down payment assistance programs, because not all of them are created equal! We’ll learn the truth about down payment assistance!
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Additional Resources:
Resource 1: https://downpaymentresource.com/are-you-eligible/
Resource 2: https://www.hud.gov/topics/rental_assistance/local
Types of down payment assistance:
Grants- These are non-repayable, truly free money down payment assistance programs that are directed to lower income borrowers and minority borrowers!
Low interest loans- These are second loans that are repayable while repaying your mortgage so you will have 2 different monthly payments. One for the mortgage amount and one for the amount of the down payment assistance and closing costs.
Deferred Loan- These are loans for the down payment and closing cost, but you have to repay it when you sell you home, refinance your home or when the 15 year mortgage, 20 year mortgage or 30 year mortgage term is up!
Forgivable Loan- A forgivable loan is a type of down payment assistance that is forgiven without you repaying it, but you have to stay in the property for a certain amount of time (usually 5 years) and you have to pay your mortgage on time each month, or it can be due in full!
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28 Comments
@fishermanssquad · October 10, 2026 at 9:50 pm
Interested San Diego, Ca
@Greggee100 · October 10, 2026 at 9:50 pm
thanxs for telling me the truth
in God We Trust that's my definition
of we the people for everything and
anything
🤑🤑 🤑🤑
@WilyJoe · October 10, 2026 at 9:50 pm
So, being a minority is a requirement? How is that not racial discrimination?
@lamardixon9410 · October 10, 2026 at 9:50 pm
The thing that seems scamlike with dAP loans is its tough to get lenders to want to do it, there's more involved. Also, if you're trying to get as many costs in loan as you can, closing etc, even with 15,000 dpa, you'll end up having PMI which adds 100-300 a month versus 20% down and not having to carry PMI mortgage insurance. Going through this now. Using 15,000 dpa in nc and right now unless we can work something else out, a 150,000 house would be a 1,600 s month.. Good luck finding something decent in this market for 150,000. I'm qualified for up to 220,000 but my mortgage payment would be around 2,000 a month…I probably missed out on owning a home unless things change dtamatically. My rent is just under 1,000. No dicearoni
@JenniferBravoo · October 10, 2026 at 9:50 pm
I got qualify for a down payment system, but it adds money to my mortgage payment. I’m assuming that is the extra money. I’m paying a month.
@vickeywhite8974 · October 10, 2026 at 9:50 pm
Thank you now I understand more, kudos to you!🙏🏼
@brendatomlinson · October 10, 2026 at 9:50 pm
I’m just beginning my journey of learning about down payment assistance. This video is very informative. I’ll check out your links. Thanks so much!
@BinArtGames · October 10, 2026 at 9:50 pm
Thank you so much
@LOS._ · October 10, 2026 at 9:50 pm
So help me clarify…. Im not allowed to use the DPA on a house that my mom would live in and pay me rent correct?
@brandnakitanb · October 10, 2026 at 9:50 pm
Hey how do I get a grant?
@c_low_da_wrk9121 · October 10, 2026 at 9:50 pm
Great video. Very informative. Im looking to
Purchase my first home, but saving 4 thousand plus dollars for a down payment is not as easy as one thinks nowadays. Grants and home loans are a positive outlook with a few added thousands to help purchase.
@greeny37 · October 10, 2026 at 9:50 pm
You can use it for a rental, however you need to live in one portion of it for I believe the first two years
@lorryarrington6679 · October 10, 2026 at 9:50 pm
Thank you
@SoniaGonzalez-bm9bw · October 10, 2026 at 9:50 pm
Great info
@omarkhanlilcurry · October 10, 2026 at 9:50 pm
Thank you for this video !! I’m looking at using Utah’s first time home buyer or colorados
@Melodicluis · October 10, 2026 at 9:50 pm
Very helpful & clear to understand. Thanks a lot
@MrCucamonga1 · October 10, 2026 at 9:50 pm
Good video. I'm a loan officer of 23 years and I have personally seen DAP's (Down-Payment Assistance Programs) become less and less beneficial over the years. I will say that we work in a very litigious industry, so you have to be weary of proclaiming something a scam when it isn't. Most of these DAPs are pretty clear on the terms up front and go to great lengths to make sure the buyer knows what they're getting themselves into. However, some unseasoned or less-than-scrupulous loan officers will fail to point out all the potential pitfalls of a DAP because they just want the buyer to say "yes" in order to close the loan and get paid. It pays to do your homework and make sure you're dealing with someone who knows what they're doing.
One of the other points that would be considered a con of a DAP is that many people go the FHA route when using a DAP. One of the great features of an FHA loan is what's called an FHA Streamline. This is where you can refinance into a lower rate (should the market conditions exist for this) without needing an appraisal or any sort of income documentation. It is a very simple refi and was hugely beneficial back around 2012 when a lot of people owed more than the house was worth and didn't qualify for the HARP program. However, when you have a deferred loan on the back end of your main mortgage, this has the potential to disqualify you from being able to do the FHA streamline, depending on the terms of the DAP. I'm not a big fan of DAPs. But for some, it's the only way to get them into a home. It's important they know the pros and cons. Again, great video. Thank you.
@mogo6642 · October 10, 2026 at 9:50 pm
The subscribe button is Black…. Should I be worried?😮
@davidvazquez4171 · October 10, 2026 at 9:50 pm
Would you be able to rent out the property after living a certain amount of years as a primary resident ?
@reallife4910 · October 10, 2026 at 9:50 pm
Please help I just called to finishing paying my house, now they telling me I have to finish paying my assistance that I used for closing cost. I can believe that, that is 30 years and pay it full after 10 years. I don’t have that more to put down on that assistance what can I do no. I have a principal balance of 3000,
@atravellingsheep4533 · October 10, 2026 at 9:50 pm
I'm confused. Can you just use every single "DHA" you qualify for together during a purchase?
@longshotin05 · October 10, 2026 at 9:50 pm
Thank you that was very helpful. I didn't know I would be a first time home buyer since it's been longer than 3 years since I originally bought. I lost my first house because of my job and yadda yadda but in a much better position now.
@ingridlorenasierra7840 · October 10, 2026 at 9:50 pm
Thank you for this video 🙌for downpayment assistance, is it better to go with an approved lender from my country website or can any local lender access these funds?
@kiannadoll3857 · October 10, 2026 at 9:50 pm
Thank you Ben
@Adaawo · October 10, 2026 at 9:50 pm
Thanks for this clear information
@millyuganda05 · October 10, 2026 at 9:50 pm
Wonderful information
@Deede913 · October 10, 2026 at 9:50 pm
Thanks for Cons and Pros so appreciated 👍🏽
@FlowPhase1 · October 10, 2026 at 9:50 pm
I heard that this was recently closed. What do you think?