FHA Down Payment Assistance Programs

Down Payment Assistance Programs (DAPs or DPAs) are designed to assist home buyers with down payment and closing costs required by FHA loan programs. In general, there are two types of DAP programs. The first are programs administered by the city or state. These types of programs generally require a 2nd mortgage, though that mortgage is often forgivable of deferred.

The second and more common type of program is administered by a non-profit organization and requires funds from the seller in order for the borrower to participate.

In either case, the borrower is able to purchase a home using an FHA loan with little or no money down.