(443) 285-9981

Down Payment Assistance Loans

FHA and Conventional Down Payment Assistance: What You Need to Qualify

Programs like Chenoa Fund or Shared Appreciation DPA help FHA buyers cover up to 5% (or more) of the home’s purchase price—enough to cover your full down payment and part of the closing costs. On the Conventional side, we have access to various grants and programs that mimic what is available via FHA lending options.

✅ Basic Requirements:

  1. Credit Score:
    • Most programs require a minimum score of 580–620
    • Some may accept lower scores with compensating factors (like low debt or strong rental history)
  2. Income Limits:
    • Some DPA programs have income limits, often based on area median income (AMI)
    • Some shared appreciation programs allow higher incomes in exchange for a portion of future home appreciation
  3. Primary Residence Only:
    • You must live in the home as your primary residence
    • Investment properties do not qualify
  4. FHA Loan Eligibility:
    • Must qualify for a standard FHA loan (stable income, acceptable debt-to-income ratio, property meets FHA standards)
  5. Homebuyer Education:
    • Most programs require you to complete a homebuyer education course, either online or in person
  6. Loan Structure:
    • DPA funds may be a forgivable second mortgage, repayable loan, or shared appreciation agreement
    • Terms vary—some are forgiven after a few years, while shared appreciation models require repayment plus a share of the home’s value increase

📌 Example:

Chenoa Fund 5% DPA

  • Credit score: 620+
  • Covers 3.5% FHA down payment + 1.5% toward closing
  • Repayable or forgivable second mortgage
  • No first-time buyer requirement

Shared Appreciation DPA

  • No monthly payments
  • You repay the assistance + a % of your home’s future appreciation when you sell or refinance
  • May allow higher income buyers