What is down payment assistance and how does it work?

Down payment assistance (DPA) programs provide a second loan that covers the down payment on your home purchase, allowing you to buy with little or no money down. The first mortgage finances the home (typically 96.5% of the purchase price on FHA programs). The DPA second covers the down payment (3.5% or 5%). Both loans close at the same time at the same closing table — you pay one closing appointment and get the keys.

Do i have to be a first-time home-buyer to use DPA?

Not for the BFF DPA FHA program. That program has no first-time homebuyer requirement — any eligible borrower purchasing a primary residence can use it, regardless of prior homeownership history. The CalHFA programs do require that you have not owned and occupied a home as your primary residence in the past three years, which is the standard "first-time homebuyer" definition used by most state housing agencies.

What is the forgivable second mortgage option?

The BFF DPA FHA 3.5% forgivable second is a second mortgage that does not need to be repaid if you stay in the home as your primary residence for three years. At the end of three years, the remaining balance is forgiven — it goes away with no payment required. If you sell or refinance before the three-year mark, the remaining prorated balance of the second becomes due at that transaction. The repayable version works like a standard second mortgage that you pay back monthly over the loan term.

What credit score do i need for a DPA program?

BFF DPA FHA requires a minimum 600 credit score for automated underwriting approval, or 660 for manual underwriting. CalHFA Conventional requires 680. CalHFA Government FHA requires 640. These minimums are generally higher than what the underlying first mortgage program alone requires — that's because adding a second mortgage to the file layers additional risk that the program guidelines account for.

Are CalHFA programs only for California?

Yes. Both CalHFA Conventional and CalHFA Government FHA programs are available only for properties located in California. They also require the borrower to meet California Housing Finance Agency income limits and purchase price limits for the specific county where the property is located. If you're buying outside of California, the BFF DPA FHA program is the right starting point.

Does using DPA affect my mortgage rate?

DPA programs typically carry a slightly higher interest rate on the first mortgage than a standard FHA or conventional loan without assistance — because the combined program carries a layered risk that the market prices accordingly. Your loan officer will show you the side-by-side: your monthly payment with DPA assistance vs. what you'd pay if you saved a traditional 3.5% down payment and used a standard FHA loan. For most buyers, the trade-off is worth it — the ability to buy now rather than waiting years to save outweighs the small rate difference.

Down Payment Assistance — DPA FHA & CalHFA Programs

The Down Payment Is the Only Thing Between You and a Home. We Can Help With That.

Saving for a down payment while paying rent is genuinely hard. These programs pair a first mortgage with a second that covers your down payment — so you can stop waiting and start buying. No first-time homebuyer requirement on the DPA FHA program. Credit scores from 600.

0% Down Available
Credit Scores From 600
No FTHB Requirement (DPA FHA)
Forgivable Second Option
3 Programs Available

See If I Qualify Call Now

No credit pull required · Response within 24 hours

Down Payment Assistance Programs

Three Programs. One Goal — Get You Into a Home.

Each program pairs a first mortgage with a second that covers the down payment. Here's how each one is structured, who it's for, and what it requires.

How Down Payment Assistance Works

A DPA program uses two loans closed simultaneously at the same table. The first mortgage finances the home purchase (typically 96.5% of the purchase price on FHA programs). The second mortgage covers the down payment (3.5% or 5%). Together they get you to 100% or more of the purchase price — so you can close without bringing a down payment to the table. The second can be repayable (a real loan you pay back) or forgivable (forgiven after a qualifying period in the home).

BFF DPA FHA

Most Flexible — Any Eligible Buyer

FHA first mortgage at 96.5% LTV paired with a 3.5% or 5% DPA second. No first-time homebuyer requirement — any eligible borrower who hasn't owned in the past 3 years in some scenarios, or who simply qualifies, can use this program. The most accessible DPA option we offer.

Min FICO (AUS)

600

Min FICO (Manual UW)

660

CLTV

100% / 101.5%

Min Loan Amount

$75,000

No first-time homebuyer requirement — any eligible borrower
FHA first mortgage at 96.5% LTV + DPA second
3.5% repayable second — paid back over the loan term
3.5% forgivable second — forgiven after 3 years of owner-occupancy
5% repayable second also available for larger assistance
2-1 temporary buydown allowed on the first mortgage
Manufactured homes (double-wide) eligible
Up to 6% seller concessions allowed
Homebuyer education course required
Not available in Washington state
SC: minimum second TD amount of $5,000

The forgivable option means you receive the full 3.5% assistance — and if you stay in the home as your primary residence for 3 years, the second mortgage is forgiven entirely. If you sell or refinance before 3 years, the remaining balance is due.

See If I Qualify

Program Structure

What Each Program Looks Like at the Closing Table

Down payment assistance always involves two loans — a first and a second. Here's the structure for each of our three programs side by side.

BFF DPA FHA

Any eligible buyer · No FTHB required

1st MortgageFHA at 96.5% LTV

2nd Mortgage3.5% or 5% DPA

Combined LTV100% or 101.5%

Your Down Pmt$0 out of pocket

2nd StructureRepayable or Forgivable

Forgivable After3 years in home

Min Credit600 (AUS) / 660 (Manual)

FTHB Required?No

State LimitMost states (not WA)

CalHFA Conventional

California only · FTHB required

1st MortgageConventional 97% LTV

2nd MortgageCalHFA MyHome DPA

Combined LTVUp to 105% CLTV

Your Down Pmt$0 out of pocket

2nd StructureDeferred / repayable

Forgivable?No — deferred payment

Min Credit680

FTHB Required?Yes — last 3 years

Income Limits?Yes — by county

CalHFA Government FHA

California only · FTHB required

1st MortgageFHA at 96.5% LTV

2nd MortgageCalHFA MyHome DPA

Combined LTVUp to 105% CLTV

Your Down Pmt$0 out of pocket

Max 1st Loan$970,800

Forgivable?No — deferred payment

Min Credit640

FTHB Required?Yes — last 3 years

Income Limits?Yes — by county

How a DPA Loan Works — From Application to Keys

The DPA process is similar to a standard mortgage — the main difference is that two loans close simultaneously at the same table. Here's what to expect from start to finish.

Step 1

Talk to a Loan Officer

We'll review your credit, income, location, and whether you've owned a home recently. For CalHFA programs, we'll check your county's income limits and purchase price limits at that first conversation — no surprises later.

Step 2

Get Pre-Approved in 24 Hours

DPA pre-approvals work like any other mortgage — we submit both loans together for review. Most borrowers hear back within one business day. Your pre-approval letter will specify the program, max purchase price, and combined first and second structure.

Step 3

Find Your Home

Shop for a home in your pre-approved price range. For CalHFA programs, the property must be in California and meet the county purchase price limits. For BFF DPA FHA, the property just needs to be your primary residence and meet FHA minimum property standards.

Step 4

Complete the Homebuyer Education Course

All three programs require a HUD-approved homebuyer education course. It can be completed online in a few hours and is typically done during the processing period — it won't slow down your closing.

Step 5

Close on Both Loans Simultaneously

First and second mortgage close together at the same closing appointment. You sign documents for both, and on funding day the seller is paid in full. You get the keys without having brought a down payment to the table.

Step 1

Talk to a Loan Officer

Step 2

Get Pre-Approved in 24 Hours

Step 3

Find Your Home

Step 4

Complete the Homebuyer Education Course

All three programs require a HUD-approved homebuyer education course. It can be completed online in a few hours and is typically done during the processing period — it won't slow down your closing.

Step 5

Close on Both Loans Simultaneously

Who This Is For

DPA Is a Great Fit If…

Down payment assistance exists for buyers who have the income to carry a mortgage but haven't been able to save a lump sum for the down payment. Here's who benefits most.

You're a First-Time Buyer
Renting while saving for a down payment is a cycle that can take years to break. DPA programs let you use your current income to qualify — without needing years of savings first.
You Have the Income But Not the Savings
You can qualify for the monthly payment — you just don't have 3.5% sitting in a bank account. That's exactly the gap DPA programs are designed to bridge.
You've Owned Before (BFF DPA FHA)
Unlike CalHFA and most state DPA programs, BFF DPA FHA has no first-time homebuyer requirement. If you previously owned a home and need down payment help today, this program may still work for you.
You're Buying in California
CalHFA programs are some of the strongest DPA options in the country for California buyers. If you meet the income and purchase price limits, you can access CLTV up to 105% — covering down payment and some closing costs.
You Want the Forgivable Option
The BFF DPA FHA 3.5% forgivable second disappears after 3 years of owner-occupancy. If you plan to stay in the home, you effectively receive free down payment assistance.
You're Buying a Manufactured Home
The BFF DPA FHA program allows double-wide manufactured homes — a property type that many DPA programs exclude. Fewer options, but we have one.

The FlexPoint Difference

Why Borrowers Choose FlexPoint for Down Payment Assistance

Nearly 30 years and $5B+ in funded loans. Here's what that experience means when you're navigating a two-loan DPA file.

DPA Programs

BFF DPA FHA, CalHFA Conventional, and CalHFA Government — covering most buyer situations.

600

Min Credit Score

BFF DPA FHA starts at 600 AUS — lower than most DPA programs require.

Down Payment

All three programs allow you to close with zero out-of-pocket down payment.

No FTHB

Req. on DPA FHA

No first-time homebuyer requirement on the BFF DPA FHA program.

24hr

Pre-Approval

Most DPA borrowers receive a pre-approval response within one business day.

Free Consultation

Find Out If You Qualify Today

Tell us where you're buying, your credit score range, and whether you've owned a home in the past 3 years. A FlexPoint loan officer will review all three programs against your profile and tell you what you qualify for — no credit pull required to start.

First Name

Last Name

Mobile Phone

Program Interest

Loan Purpose

Property Type

Residency Type

Estimated Loan Amount$300,000

$50,000$3,500,000+

SSL Secured
No Credit Pull
NMLS #243082
Multi-State Licensed

By submitting this form, you consent to be contacted by FlexPoint Inc. regarding your inquiry. This is not a commitment to lend. All loans subject to credit approval. Restrictions apply. Some products may not be available in all states. FlexPoint Inc. NMLS #243082.

FAQ