DPA Programs
Discover how we leverage two powerful Down Payment Assistance options to bridge the $6–10k gap at closing so you can roll in with $0 out-of-pocket.
Government-Funded DPA
Program: National Faith Homebuyers Program
Website: nationalfaith.org
Funding Source: Federal/state grant
Type: Forgivable grant (no repayment required)
Key Features & Requirements:
Income Limits: Must fall within program-specific income bands
Minimum Credit Score: 580
Underwriting: Full approval through the Automated Underwriting System (AUS)
Typical Benefit: Covers 3.5% FHA down payment plus most closing costs
Ideal for: Buyers with credit scores 580–619 who meet income-eligibility and want true grant funds.
Lender-Provided DPA (In-House Second)
Program: Zero Down Second-Lien DPA
Funding Source: Private lender funds
Type: 5% second mortgage (repayable over life of loan)
Key Features & Requirements:
Loan Amount: 5% of purchase price (e.g., $5,000 on a $100,000 home)
Borrower Cash at Closing: Typically $2–$3 K after layering with FHA & seller credits
Income Limits: None—open to all qualified borrowers
Minimum Credit Score: 620 (or 640+ for manual underwriting)
Underwriting:
Standard: AUS decision
Manual UW Option: Available if credit ≥ 640
Ideal for: Buyers with stronger credit (620+), any income, who are comfortable repaying a small second lien.
Side By Side Comparison
| Feature | Gov’t-Funded DPA | In-House Lender DPA |
|---|---|---|
| Type | Forgivable grant | Repayable second mortgage |
| Max Assistance | Up to 3.5% + closing costs | 5% of purchase price |
| Borrower Cash Needed | $0 | $2–$3 K |
| Income Limits | Yes | No |
| Min. Credit Score | 580 | 620 (640+ for manual UW) |
| Underwriting Method | AUS only | AUS or manual UW |
we layer federal programs, seller concessions, and down payment assistance (DPA) to cover every dollar you’d otherwise pay at closing. Below are the three primary “plays” we deploy each tailored to different borrower profiles and eligibility.
-
The “2-Family Play”
Purchase a multi-unit property, live in one unit, rent out the rest and use projected rental income to qualify.
-
FHA Flexibility:
Insures up to 4-unit properties but Detroit’s viable 4-unit inventory is very limited, so we focus on duplexes.
-
Fannie Mae Duplex Option:
Allows up to 2 units with just 5% down.
-
Income Leverage:
Both FHA and Fannie Mae let us include up to 75% of projected rent as qualifying income.
-
The VA Play
How It Works
-
100% Financing:
Veterans and eligible service members can finance the full purchase price.
-
4% Seller Concessions:
Sellers can credit 4% toward closing costs.
-
Unlimited Seller Contributions:
Any additional out-of-pocket expenses like small debts to qualify can be covered by seller funds.
-
FHA + DPA Strategy
How It Works
-
3.5% FHA Down Payment:
FHA loans require just 3.5% of the purchase price upfront.
-
6% Seller Concessions:
FHA loans require just 3.5% of the purchase price upfront.
-
Out-of-Pocket Without DPA:
On average, borrowers pay $6,000–$10,000 at closing without assistance.
-
Down Payment Assistance:
Local and state DPAs bridge that $6–10 K gap so most clients roll in with $0 out-of-pocket
How to Choose & Apply
1. Check Your Profile
Use our Eligibility Quiz to see which DPA you qualify for.
2. Book a DPA Strategy Call
15-minute session to map your path to $0 down.
3. Submit Documentation
Iincome verification, credit review, and AUS/manual underwriting.
4. Lock Your Funds
DPA is reserved pair it with FHA, seller credits, and our other strategies for a $0-Down closing.