DictionaryAssistance programs

Down payment assistance: what it means

Down payment assistance (DPA) is money a public or nonprofit program contributes toward your down payment and sometimes your closing costs. Many states, local governments and nonprofits offer programs to make homeownership more affordable; most focus on low- and moderate-income families buying their first home, and some target teachers, firefighters and other public service employees.

In Spanish it is

Ayuda para el pago inicial

Also written as: DPA · down payment grant · second mortgage assistance

A man shakes hands with the specialist who helped him with his loan, in the kitchen of his new home.

Verified on October 16, 2026

2 official sources

See the whole dictionary

The full explanation

The help can be a grant you never repay, a second loan with no payments that is forgiven over the years or repaid when you sell, and many can be used with a regular FHA or conventional loan.

An example

His state housing agency offers an interest-free second mortgage for the down payment. Ricardo pairs it with an FHA loan and closes with less money out of pocket.

You will see it in…

Your state's assistance programs page on aquitucasa
The Loan Estimate, as a second loan or a credit at closing
Each program's participating-lender requirements

Words that go with it

You will rarely see this word alone. These are the ones that show up with it on the same papers.

More guides that use “down payment assistance”

Still confused by a paper?

A HUD-approved housing counselor can walk you through it. Agencies usually charge little or nothing, many work in Spanish, and they do not sell you anything.

What a housing counselor does See free help

Official sources

We sum up what these official sources say, in plain words. We add no rules they do not state; when a rule changes, the definition and its date change.

1. CFPB · Special loan programs (external site) · in English · Verified on October 16, 2026
2. CFPB · Where can I get money for a down payment on a home? (external site) · in English · Verified on October 16, 2026