Down Payment Assistance (DPA) Programs

The down payment is the #1 barrier to homeownership. DPA programs remove that barrier—with grants, forgivable loans, and assistance that can cover your entire down payment and closing costs.

Who Is This Loan For?

✅ First-time homebuyers who need help with the down payment
✅ Buyers who haven't owned a home in the last 3 years (you qualify as "first-time" again)
✅ Low-to-moderate income buyers in FL, NJ, or PA
✅ Essential workers (teachers, nurses, first responders, law enforcement)
✅ Veterans who want to combine DPA with other loan programs
✅ Anyone who qualifies for a mortgage but doesn't have enough saved for the down payment

What Is Down Payment Assistance?

Down payment assistance programs are government-funded and nonprofit-funded programs that help homebuyers cover their down payment and sometimes closing costs.

These aren't gimmicks. They're real programs backed by state housing agencies, county governments, and HUD-approved organizations. Billions of dollars in DPA funds go unused every year because buyers don't know they exist.

Types of DPA programs:

🔹 Grants (Free Money)

Money you never have to pay back. It's applied directly to your down payment or closing costs. This is the best type of DPA—and more programs offer it than you'd think.

🔹 Forgivable Second Loans

A second mortgage that's forgiven after a set period (usually 5–10 years). If you stay in the home for the required time, you owe nothing. If you sell or refinance early, you repay a prorated amount.

🔹 Deferred Second Loans

A second mortgage with no monthly payments. You repay it when you sell, refinance, or pay off the first mortgage. Zero interest in many programs.

🔹 Low-Interest Second Loans

A small second mortgage at a below-market interest rate with affordable monthly payments. The least generous type, but still significantly reduces your out-of-pocket costs.

At Team Malik, we know the DPA landscape in Florida, New Jersey, and Pennsylvania inside and out. We'll match you with the best program for your situation—and handle all the paperwork. Licensed in all three states.

DPA Programs by State

🟠 Florida DPA Programs

Florida Hometown Heroes

Who qualifies: W-2 employees of a Florida-based employer (over 50 eligible professions including teachers, nurses, law enforcement, firefighters, childcare workers, and more)
Assistance: Up to $35,000 as a 0% interest, deferred second mortgage
Repayment: Due when you sell, refinance, or no longer occupy the home
Pairs with: FHA, VA, Conventional, USDA first mortgages
This is one of the most generous DPA programs in the country

Florida Assist (FL Assist)

Who qualifies: First-time homebuyers (or haven't owned in 3 years) meeting income limits
Assistance: Up to $10,000 as a 0% interest, deferred second mortgage
Repayment: Due when you sell, refinance, or pay off the first mortgage
Pairs with: FHA and conventional first mortgages

Florida HLP (Hardest Hit Fund)

Who qualifies: Buyers in targeted counties meeting income and purchase price limits
Assistance: Up to $15,000 as a forgivable loan (forgiven after 5 years)
Pairs with: FHA and conventional first mortgages

🔵 New Jersey DPA Programs

NJHMFA Down Payment Assistance

Who qualifies: First-time homebuyers meeting income and purchase price limits
Assistance: Up to $15,000 (or more in targeted areas) as a forgivable second mortgage
Repayment: Forgiven after 5 years of occupancy
Income limits: Vary by county (typically $100,000–$175,000+ for household)
Pairs with: NJHMFA first mortgage programs (FHA, conventional)

NJHMFA First-Time Homebuyer Mortgage

Who qualifies: First-time buyers meeting income and credit requirements
Features: Below-market interest rate + DPA combined in one program
Min. credit score: 620

🟢 Pennsylvania DPA Programs

PHFA Keystone Advantage Assistance

Who qualifies: First-time and repeat buyers meeting income limits
Assistance: Up to $6,000 as a 0% interest, 10-year forgivable second mortgage
Repayment: Forgiven after 10 years; prorated repayment if you sell or move before then
Pairs with: PHFA first mortgage programs (FHA, conventional, VA)

PHFA HOME stead Program

Who qualifies: Buyers in targeted areas meeting income limits
Assistance: Up to $10,000 as a no-interest second mortgage
Repayment: Due when you sell or refinance

PHFA K-FIT (Keystone Forgivable in Ten Years)

Who qualifies: Buyers using a PHFA first mortgage
Assistance: Up to 5% of the purchase price as a forgivable loan
Repayment: Forgiven after 10 years

How DPA Works with Your Mortgage

DPA doesn't replace your mortgage—it layers on top of it. Here's how:

Step 1 — You qualify for a first mortgage (FHA, Conventional, VA, or USDA)

Step 2 — We apply DPA to cover your down payment

Step 3 — You close with little to no money out of pocket

Example:

Amount

Home price $300,000

FHA down payment (3.5%) $10,500

DPA grant/forgivable loan -$10,500

Your out-of-pocket down payment $0

You still need to cover some closing costs (unless the seller contributes or the DPA program covers them too), but many buyers close with under $2,000 out of pocket—sometimes zero.

DPA Eligibility Requirement's
Requirements vary by program, but here are the general guidelines:

DPA vs. Saving for a Down Payment

The math is clear: Waiting to save costs you more in rent and missed appreciation than the DPA assistance itself. If you qualify, using DPA is almost always the smarter financial move.

The DPA Loan Process

Step 1 — Eligibility Check

We review your income, credit, and target purchase area to identify every DPA program you qualify for. Many buyers qualify for multiple programs—we'll find the best one. Takes 15 minutes.

Step 2 — Homebuyer Education

Most DPA programs require a HUD-approved homebuyer education course. It's free, online, and takes about 4 hours. We'll send you the link and you can complete it at your own pace.

Step 3 — Pre-Approval

We issue a pre-approval letter that includes your DPA. Sellers see a fully qualified buyer with financing locked in. Turnaround: 1–2 business days.

Step 4 — Home Search & Offer

Find your home. We'll confirm the property meets program requirements (price limits, location, condition) before you make an offer.

Step 5 — Underwriting & DPA Processing

Your first mortgage and DPA are processed together. The DPA agency reviews and approves the assistance. Timeline: 3–4 weeks.

Step 6 — Closing

Sign, close, move in. The DPA is applied at closing—you'll see it as a credit on your settlement statement. Total timeline: 30–50 days.

Frequently Asked Questions

Do I have to be a first-time homebuyer?

Most programs require it, but "first-time" means you haven't owned a home in the past 3 years. If you owned before but have been renting, you likely qualify again. Some programs (like Florida Hometown Heroes) don't require first-time status at all.

Is DPA really free money?

Grants are truly free—no repayment ever. Forgivable loans become free after the required occupancy period (usually 5–10 years). If you sell or refinance before then, you repay a prorated amount. Deferred loans are repaid when you sell or refinance, but have no monthly payments and often no interest.

Can I use DPA with any loan type?

Most DPA programs pair with FHA and conventional loans. Some also work with VA and USDA. We'll match the right first mortgage with the right DPA program for maximum benefit.

What if I make too much money?

Income limits are higher than most people expect—often $100,000–$175,000+ depending on the county and household size. Don't assume you're over the limit without checking. We'll verify in minutes.

Do I have to take a class?

Most programs require a HUD-approved homebuyer education course. It's free, available online, and takes about 4 hours. It's actually useful—covers budgeting, the mortgage process, and homeownership responsibilities.

Can I combine DPA with seller concessions?

Yes! In many cases, you can use DPA for the down payment AND negotiate seller concessions to cover closing costs. This is how many of our buyers close with $0 out of pocket.

How do I know which program is best for me?

That's our job. We know every active DPA program in FL, NJ, and PA. We'll match you with the program that gives you the most assistance with the best terms. Book a free consultation and we'll lay out your options.

Will DPA affect my interest rate?

Some DPA programs are paired with specific first mortgage products that may have slightly higher rates (0.25–0.5% above market). Others have no rate impact at all. We'll show you the total cost comparison so you can make an informed decision.

Explore Other Loan Options

FHA Loans → Low down payment and flexible credit. Great for first-time buyers.

DSCR Loans → Qualify on rental income. Built for investors.

Bank Statement Loans → Self-employed? Use your deposits to qualify.

Stop Renting. Start Owning. DPA Makes It Possible.

Thousands of dollars in assistance are available right now—and most buyers don't even know about it. Let's check your eligibility in 15 minutes. No cost, no obligation.

Malik Shalmiyev · NMLS #1542149

Team Malik Mortgage · Rize Mortgage (Standard Mortgage Capital LLC, NMLS #1604663) Licensed in FL, NJ & PA

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