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Down Payment Assistance

Down payment
doesn’t have to
be the
obstacle

Multiple programs exist to bridge the gap between rent and ownership. Real second-lien structures - repayable or forgivable - that cover the upfront cost. Whether one fits your file is a real conversation, not a marketing promise.

See if you qualify Browse programs
§01 · The mechanic
Plain language, no marketing

How down payment assistance works.

DPA is not free money. It is a second-lien loan that pairs with your first mortgage to cover all or part of your down payment. Two structures, both real.

Structure 01

Repayable
second lien.

A second mortgage with a set term, interest rate, and monthly payment. You pay it back over time, alongside your first mortgage. Lower forgiveness risk, but adds to your monthly obligation.

  • Typical term. 10 years.
  • Rate. 1–2% above the first mortgage, depending on program.
  • Best for. Borrowers who want to preserve cash savings and accept a slightly higher monthly payment.
  • Risk. None of forfeiture - you simply repay on schedule.
Structure 02

Forgivable
second lien.

A second mortgage with 0% interest and no monthly payments. After a defined period of on-time first-mortgage payments, the lien is forgiven and released. Lower monthly cost, but conditions apply.

  • Typical term. 30 years - forgiven after 36 consecutive on-time first-mortgage payments.
  • Rate. 0%. No monthly payment.
  • Best for. Borrowers confident in steady cash flow who will not refinance or sell in the early years.
  • Risk. A single 30+ day late payment can restart or void the forgiveness clock.
A typical DPA stack

The math, illustrated.

On a $400,000 FHA purchase, the borrower’s 3.5% minimum required investment is $14,000. A DPA second lien covers that 3.5% - meaning the borrower brings little to nothing to closing for the down payment itself. Closing costs and prepaid items remain the borrower’s responsibility, though seller concessions can help offset those.

§02 · Programs we work with
Three examples - not an exhaustive list

The programs most files use.

Down payment assistance comes from many sources - national programs, state housing finance agencies, county and municipal programs. Below are three of the most common we work with. State-specific programs may also be available in your market; we will walk through your full options on the first call.

CBC Mortgage Agency

Chenoa Fund®

Footprint Available nationwide - except New York

Subject to CBC Mortgage Agency program guidelines for Chenoa. The Chenoa Fund® program has not been reviewed or approved by HUD or FHA.

A national down payment assistance program administered by CBC Mortgage Agency (NMLS #1186381), a tribally-owned correspondent lender. Chenoa Fund pairs with FHA first mortgages and offers both repayable and forgivable second-lien structures. No income limits and no first-time buyer requirement.

Credit Floor
600+ (industry middle-of-three or lower-of-two scoring)
Income Limits
None
First-Time Buyer
Not required
Assistance
3.5% or 5% of purchase price
Pairs With
FHA first mortgage
Variants
Repayable - 10-year term, ~1% rate above first mortgage · Forgivable - 0% interest, no monthly payment, forgiven after 36 consecutive on-time payments on the first mortgage
Counseling
Required for FICO 600–639 (free through Money Management International for 600–619). No requirement for 640+.
California Housing Finance Agency

CalHFA.

Footprint California only

Subject to California Housing Finance Agency program guidelines. Programs subject to funding availability - some are lottery-based and exhaust quickly.

California’s state housing finance agency offers multiple down payment assistance programs to first-time buyers in California. Funding is bond-backed and county-specific. MyHome Assistance is the flagship: a deferred-payment silent second covering 3.5% (FHA) or 3% (conventional) of the purchase price, repayable only on sale, refinance, or transfer.

Credit Floor
660–680 typical, varies by program
Income Limits
Yes - county-specific, tied to Area Median Income
First-Time Buyer
Required for most programs
Assistance
3–3.5% of purchase price (MyHome) · up to 20% / $150K (Dream For All, lottery-based)
Pairs With
CalHFA-approved FHA, VA, USDA, or conventional first mortgage
Key Programs
MyHome - silent second · ZIP - closing-cost help · Dream For All - shared appreciation up to 20%
Counseling
Required - CalHFA-approved homebuyer education course
Arrive Home

Arrive Home.

Footprint Available nationwide - except New York

Subject to Arrive Home program guidelines. Focused on serving borrowers who do not fit traditional credit profiles.

A national affordable-housing program built to serve underserved and minority borrowers, including those with non-traditional credit profiles. Pairs with FHA first mortgages and offers both repayable and forgivable structures. Recently expanded to include manufactured housing (New Foundations DPA) and an Earned Equity Program for borrowers without traditional credit histories.

Credit Floor
Per FHA guidelines (typically 580+, lender overlays vary)
Income Limits
None on standard DPA program
First-Time Buyer
Not required
Assistance
3.5% or 5% of purchase price
Pairs With
FHA first mortgage
Variants
Repayable - 10-year term, ~2% rate above first mortgage · Forgivable - 30-year term, 0% interest, no payments, forgiven after 36 consecutive on-time first-mortgage payments
Specialty
New Foundations DPA for manufactured housing · Earned Equity Program for non-traditional credit
Looking for something specific to your state?

Many states, counties, and cities run their own DPA programs alongside the national options above. Florida Hometown Heroes, Texas TSAHC, Georgia Dream, and dozens of municipal programs may apply depending on where you are buying. Ask on the first call - we will look up what is available in your market.

§03 · General eligibility
Ranges, not promises

What underwriting looks for.

Each DPA program has its own specific eligibility requirements, but most share common dimensions. The ranges below represent typical eligibility - your file will be evaluated against the specific program guidelines on the call.

Dimension 01

Credit score.

National programs (Chenoa, Arrive Home) accept 600+. State agencies like CalHFA typically require 660–680+. Some specialty programs accept lower scores with compensating factors.

Dimension 02

Income limits.

National DPA programs (Chenoa, Arrive Home) have no income limits. State and local programs typically set limits tied to 80–150% of county Area Median Income.

Dimension 03

DTI ratio.

Most DPA programs allow up to 45% DTI; some go to 50–55% with higher credit scores or compensating factors. The DPA second lien is included in the calculation.

Dimension 04

Property type.

Primary residence only for nearly all programs. 1–4 unit properties (with owner occupancy of one unit), condos with program approval, and - in some cases - manufactured homes on permanent foundations.

Dimension 05

First-time status.

National programs (Chenoa, Arrive Home) do not require first-time buyer status. State programs typically do. “First-time buyer” usually means no ownership in the past 3 years.

Dimension 06

Education.

Homebuyer education is commonly required - always for state programs, often for lower-credit borrowers on national programs. Courses are HUD-approved and run 4–8 hours.

§04 · Important notes
Required disclosures

Things to know before you sign.

Down payment assistance programs are real tools, but they come with real obligations. Read the notes below carefully, and discuss any specific concerns with your loan officer.

Compliance & Disclosure
  • This page is informational, not an offer of credit. Eligibility for any specific DPA program is determined by the program administrator according to their published guidelines, not by Home Loan Studio. All loan applications are subject to underwriting approval.
  • DPA is debt, not a gift. Both repayable and forgivable DPA loans are recorded as second liens on the property. Forgivable products carry conditions that, if not met, can trigger repayment obligations.
  • Forgiveness is conditional. Forgivable DPA products require strict on-time payment history on the first mortgage - typically 36 consecutive payments. Late payments may restart the forgiveness clock, and refinancing or selling before the forgiveness period may trigger repayment.
  • Program terms may change. Program guidelines, rates, assistance amounts, and availability are set by the program administrators and may change without notice. Information on this page is current as of publication.
  • Home Loan Studio is a correspondent lender that participates in these programs. We are not the program administrator. We do not determine eligibility - we help submit your file according to the published guidelines.
  • State availability. National programs (Chenoa, Arrive Home) are not available in New York. CalHFA programs are California only. Other state and local programs have their own footprints.
  • Compliance reference. Home Loan Studio is a team at Rize Mortgage. Standard Mortgage Capital, LLC dba Rize Mortgage · NMLS #1604663. Equal Housing Lender. Licensed in the states in which we operate.
Multiple programs. One conversation.

Find out if
a path actually fits.

Each DPA program has its own qualification path. We walk through which ones fit your file in a single twenty-minute call - including state and local programs in your market that may not be listed here. No commitment. No pressure.

Talk to a loan officer Read the buyer’s guide