Down Payment Assistance

Down Payment Assistance — What It Is, and What It Isn’t

Help with the down payment and closing costs is real. So is the fine print. Here’s both.

Down payment help can cover the down payment itself on qualifying programs, so your total cash to close stays low. Credit scores down to 580 can work.

The short answer

Down payment assistance (DPA) is money — usually a second loan, sometimes forgivable — that helps cover your down payment and closing costs when you buy a home to live in. Some programs have no income limit and no first-time-buyer requirement. The help can cover the down payment, the closing costs, or both. What it does not mean is “no money at all.” Keep reading and we’ll give you the honest math, because that’s where most DPA advertising stops being honest.

How the help works

• Assistance typically comes as a second loan alongside your main mortgage.
• Many of those second loans are repayable over a set term; some programs forgive the help over time.
• The money can go toward your down payment, your closing costs, or both.
• Assistance pairs with regular loan programs like FHA and conventional.
• Bigger help usually costs more. Larger assistance amounts often come with a higher interest rate on the main loan. Sometimes taking less help — or none — is the smarter deal. We’ll run it both ways and show you the numbers before you decide.

The honest part: what “$0 down” still costs

Even with full assistance on the down payment, most buyers still need some cash:

• Earnest money — the deposit that goes with your contract.
• Appraisal and inspection — paid up front, before closing.
• A payment reserve — in most cases you’ll need at least one month’s mortgage payment sitting in the bank after closing.
• Closing cost gaps — a seller can pay some of your closing costs, but that money comes out of the same concessions that could have gone elsewhere in the deal.

None of that makes DPA a bad deal — for a lot of our buyers it’s the difference between renting another year and owning. It just has to be a deal where the numbers actually work.

Who this fits

• Buyers with steady income and decent credit whose savings haven’t caught up yet.
• First-time buyers — and repeat buyers, since some programs don’t require you to be a first-timer.
• Buyers in Texas, Florida, California, and Arizona purchasing a home to live in.

How it works with us

1. Call or text (817) 862-6922. Tell us what you’re looking at and what’s in the bank.
2. We match the loan + assistance together and show you the full picture — payment, cash needed, and the cost of the help itself.
3. You decide with real numbers, not a sales pitch.

FAQ

Do I have to be a first-time buyer? Not always. Some assistance programs have no first-time-buyer requirement at all.

Is there an income limit? Some programs have one, some don’t. Which ones you qualify for depends on where you’re buying and your household income — ask and we’ll check.

Is the assistance free money? Usually it’s a repayable second loan, sometimes with a higher rate on the main loan. Some programs forgive part or all of it over time. We’ll show you exactly what the help costs before you take it.

Can the seller pay my closing costs instead? Sellers can contribute toward closing costs within program limits, and sometimes that’s the better route. There’s a tradeoff either way — concessions spent on closing costs can’t be spent on other things, like a rate buydown. We’ll lay both options side by side.

Which loan programs work with assistance? Most commonly FHA and conventional loans. We’ll confirm what pairs with what for your situation.

Start here

Call or text (817) 862-6922, or visit lawtonbuildingandloan.com.

Educational information only — not a commitment to lend. All loans are subject to credit approval, and assistance programs change and can run out of funds.

— Joel Lawton, Lawton Building and Loan, NMLS #380245