Down Payment Assistance Loans
Down payment assistance home loans also known as DPA Loans come in many different shapes and sizes. Essentially, they allow an individual to purchase a home for very little money out of pocket. If you can negotiate with the Seller of the home to cover all of the closing costs, it allows you to purchase a home with as little as $1,000 or less of your own funds. It's a great loan for someone that can afford a house payment but hasn't saved for a down payment. The interest rates are higher on these types of specialty loans because of the down payment funds being given by the Lender instead of the individual coming up with it.
Down Payment Assistance Loans and Why You Would Use One
Down Payment Assistance Loans
Down Payment Assistance Loan
Used to help people without a down payment saved for a home but can afford a house payment.
Down payment assistance loan covers the down payment requirement of the loan.
Specialized loan product so the interest rates are higher than market rates.
The down payment assistance can come in the form of a repayable loan or a forgivable grant; This depends on the lender and program being used.