don’t use down payment assistance until you know these 5 things. because there’s red tape they don’t tell you upfront I love DPA and talk about it constantly, but I’m giving you the full picture so you’re not caught off guard. let’s break down what they don’t explain in detail: 1️⃣ is all down payment assistance free money? nope. here’s the difference: 💰Grant = free money, no payback required 💰 Forgivable loan = becomes free after you meet conditions (usually staying in the home 3-10 years) 💰 Silent second lien = sits on your home until you sell or refinance, then you pay it back 💰 Regular loan = you make monthly payments on it just like your mortgage make sure you know which type you’re getting before you sign. 2️⃣will my interest rate be higher with down payment assistance? probably, yeah. usually 0.5% to 1% higher. but here’s a hack: shop around with different lenders who offer the SAME down payment assistance program. rates vary by lender even when using the same DPA, so don’t just accept the first rate you’re quoted. 3️⃣how long do I have to stay in the house if I use down payment assistance? most programs require 3, 5, or 10 years. you can’t sell or refinance before that, or you’ll owe the money back. so make sure this is a house you actually want to stay in long-term. 4️⃣what credit score do I need for down payment assistance? you still need decent credit and income. there are programs for lower scores, but your options are limited. if you want access to the BEST programs with the most flexibility, aim for at least a 620-640 credit score. that opens way more doors. 5️⃣do I still need to save money even with down payment assistance? yes. DPA doesn’t cover everything. here’s what you’ll likely still pay out of pocket (using a $300k house as an example): • Earnest money: 1% of purchase price = $3,000 • Due diligence fee: varies by state/market, usually $500-$1,500 • Home inspection: $300-$500 • Appraisal fee: $400-$600 • Moving costs, furniture, immediate repairs: budget at least $2,000-$5,000 so even with DPA covering your down payment and possibly closing costs, you still need a few thousand saved to actually close and move in. bottom line: down payment assistance is amazing and can absolutely help you buy a house sooner, but know the terms, shop around, and have some cash saved. go in informed. questions? - @quenwilliamss