FHA Loans & Down Payment Assistance

Buy a Home with $0 Out of Pocket.
That's Not a Headline. That's the Math.

Harvard says 68% of renters can’t afford a down payment. FHA starts at 3.5% down with a 580 credit score. With the right DPA program, your down payment is covered — and the seller can pay closing costs. Run the numbers below.

FHA Basics

The most flexible government loan for first-time and credit-rebuilding buyers.

3.5% Down at 580+

$350K home = $12,250 down. But DPA can cover this entirely. Keep reading.

10% Down at 500-579

Lower credit? You can still buy. 500 is the floor. Most lenders won't go here — I will.

Gift Funds OK

100% of your down payment can come from family, employer, or a DPA program.

Seller Pays Closing + Buydowns

Seller can contribute up to 6% toward closing costs — or fund a 2-1 rate buydown that lowers your payment for the first 2 years. Stack with DPA for $0 down AND a lower rate.

Manual Underwriting

Computer says no? I manually underwrite FHA at 580+. Bankruptcy, limited credit, late payments — there is a path.

MIP (Mortgage Insurance)

1.75% upfront (financed) + 0.55%/year monthly. Stays for life on most FHA — but you can refinance out later.

Down Payment Assistance Programs I Carry

These programs cover your 3.5% down payment — some with no payback at all. I carry six different DPA options so I can match the right one to your situation.

Most Popular — No Payback

Forgivable Gift DPA (3.5% or 2.5%)

True gift at closing. No second lien. No payback. No resale restrictions. AUS approved. Manual UW at 580+. First-time homebuyer eligible. On a $350K home, that's $12,250 you never pay back. No 2nd lien means you can Streamline refi after 210 days — setting up a rate improvement with zero hassle.

Texas — Up to 5% Grant

Texas State Grant (Up to 5%)

Non-repayable grant. FHA, VA, and Conventional eligible. Not limited to first-time buyers. DTI flexibility up to 55%. Texas Heroes eligible (teachers, police, fire, EMS, corrections, veterans). Purchase only. Homebuyer education required. Free money from the state.

Forgivable After 3 Years

3-Year Forgivable DPA (3.5%)

Forgivable 2nd lien at 0.00% rate. No monthly payments on the 2nd. Stay in the home 3 years and the assistance disappears completely. Was 10 years — just reduced to 3.

Forgivable After 36 Payments

National Forgivable DPA (3.5% or 5%)

30-year term at 0% rate, no payments. Forgivable after 36 on-time first mortgage payments. Or choose the repayable option: 10-year term, rate 1% above first. Not limited to first-time buyers. 600 min FICO. Available nationwide. Manufactured homes and condos eligible. 2-1 buydown option.

Amortized DPA (3.5% or 5%)

Covers down payment AND closing costs. 10-year amortized 2nd lien. CLTV up to 101.5%. No first-time buyer requirement. Manual UW at 660+. Use this when you need more rate flexibility or need funds for both down payment and closing costs.

Fully Amortized National DPA (Up to 5%)

Non-occupant co-borrowers allowed. CLTV 101.5%. FHA 30-year fixed first. 600 AUS / 660 manual UW (45% DTI max). 2-1 buydown option. Manufactured homes and condos eligible. Great for buyers with family support on the application.

FHA + DPA Calculator

Pick a DPA program. See your real numbers in 30 seconds.

Questions I Hear Every Week

Can I really buy a home with $0 out of pocket?
Yes. With the Forgivable Gift DPA covering 3.5% down and 6% seller concessions covering closing costs, many buyers close with nothing out of pocket. The math depends on your price and closing costs — run the calculator above.
What's the difference between a gift DPA and a 2nd lien DPA?
A gift DPA is free money — no second lien, no payback, ever. A 2nd lien DPA puts a small second mortgage on the property that you either pay back over time or it gets forgiven after a set period (3 years or 36 payments depending on the program). The gift is better for most buyers because no 2nd lien means you can do an FHA Streamline refinance after 210 days with zero subordination hassle.
Does FHA mortgage insurance go away?
For most FHA loans (less than 10% down), MIP stays for the life of the loan. The play: buy now with DPA, build equity, then refinance into a Conventional loan once you hit 80% LTV to drop the insurance entirely.
I have a bankruptcy. Can I still get FHA?
Chapter 7: 2 years after discharge. Chapter 13: 12 months of on-time payments with court approval. I manually underwrite FHA at 580+ for borrowers with credit events.
Do I have to be a first-time buyer for DPA?
Not for all programs. The Texas State Grant, the Amortized DPA, and the National Forgivable DPA do not require first-time buyer status. The Forgivable Gift requires first-time homebuyer status (no home ownership in past 3 years) or other qualifying criteria.
How do I know which DPA is right for me?
That's what the call is for. The best program depends on your credit score, whether you're a first-time buyer, how long you plan to stay in the home, and whether you want zero payback or need help with closing costs too. Run the calculator, then call me and I'll match you to the right one.

Ready to See Your Real Numbers?

Run the calculator. Then call me. No pressure — just math.

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