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Before applying to a mortgage using Down Payment Assistance Program, there are 3 important steps you need to know about and complete. You may already have some of them checked off your list, but if you haven’t yet – do yourself the favor and complete at least one TODAY!

STEP 1 – Look at properties in the areas you are interested in.

Set that intention in your mind that you would like to own that home or one like it someday soon, and commit to taking that action.

Our top resource for viewing homes that may qualify for Federal, State, or Local Down Payment Assistance Programs can be found at Zip-HudHomes.com. You can sign up for their trial offer for only $1 and see some of the amazing deals on homes. Click Here To See Homes Now.

STEP 2 - Get Your Current Credit Report

Most all Down Payment Assistance Programs will require you to have a current credit report on hand when applying. Even if you have work to do to get your credit score up, you should start by getting your report first. Our top resource for getting your credit report can be found at YourScoreAndMore. They also have a $1 trial offer to get your report. Click Here To Get Your Report Now.

Step 3 – Immediately Improve Your Credit Score – FREE!

Now that you have your credit report, you can now increase your score FREE! Experian’s Boost program can increase your score simply by letting them know about bills you already pay. Click Here To Increase Your Score Now.

Take the initiative to complete any or all of the 3 steps above and put yourself in a position to make your homeowner dreams a reality. Now, grab a coffee sit down and read through our comprehensive guide to Down Payment Assistance. It could be the single most important thing you do all day!

Your Comprehensive Down Payment Assistance Guide:

Huge numbers of Americans who want to be homeowners are currently saving for a down payment. But they know little about lenders' down payment requirements. And too few have even heard of down payment assistance programs.

Renter to homeowner in a flash -- if you know about DPA

Yet down payment assistance (DPA) programs can be lifesavers. Because they can provide some or all the down payment and/or closing costs to buy a home. Sometimes, DPA is an outright grant you never have to repay. More commonly, it's some form of loan -- often one with low or even no interest.

In many cases, you only have to repay this loan when you sell the home. Or the provider might forgive the loan once you have lived in the home for a certain number of years. For instance, the Good Neighbor Next Door program from HUD drops its loan once you've lived in the home for three years.

Many could qualify for DPA, few apply

And there's a good chance you could qualify. In a 2018 update to report, Barriers to Accessing Homeownership, the Urban Institute reckoned between 22% and 51% of people in the metropolitan statistical areas it studied would be eligible. And these consumers could receive between $2,000 and $39,000 each.

When ignorance isn't bliss

Not knowing about these helpful programs forces aspiring homeowners to save much longer and much harder than necessary. While home prices rise faster than incomes, according to The Boston Globe. Buying sooner makes sense for another reason -- today's low mortgage rates won't stick around forever.

Yes, it's genuinely tragic. Because there are some 2,500 down payment assistance programs across the country just waiting to help wannabe homebuyers achieve their ambitions. And every community is covered by at least one.

What would-be homeowners really, really need to know about DPA

At the end of 2017, the Urban Institute explored gaps in the knowledge of those who'd like to be homeowners. You're an optimist if you think things have changed much since then.

Here are some of the findings from a survey included in the report:

More than half (53%) of those currently renting said saving for a down payment is an obstacle to their homeownership
About 80% of respondents were either unaware of how much lenders require for a down payment or believed down payments must be above 5% of the purchase price
Some 15% think lenders require a 10% down payment
A whopping 30% percent believe lenders expect a 20% down payment

But they're flat-out wrong about those last two. Down payments of 3%-3.5% are commonplace. And those who are eligible for loans guaranteed by the Department of Veterans Affairs (VA loans) or the Department of Agriculture (USDA loans) need no down payment at all.

And with DPA, buyers may need less than 3% and may get help with closing costs as well. You don't know unless you ask.

How down payment assistance (DPA) works

It's worth noting that the agencies, charities and local governments that sponsor these programs fund them annually. That means they can be flush with cash at the start of each financial year but run out before the end. The federal government fiscal year runs from October 1 until September 30. So you have a better shot at that money in the fall than you do late summer.

But program fiscal years are not all the same, and not all budget annually. With thousands of down payment assistance programs nationwide, operating in virtually every community, you may have several choices. Nearly all programs are local and independent of each other. Many are run by state, city or local governments and others by not-for-profit organizations and charities.

Finding DPA programs

The sheer number or organizations and programs means there's no standard set of rules for how down payment assistance works. That makes them harder to find and understand. You may qualify under one program but not another. And you might get an outright grant (effectively a gift) from one but a low- or zero-interest loan from another.

This guide shows you what's available in your area as of this writing.

Approved lenders

When you accept down payment assistance, you'll borrow from a lender that participates in the program. And those approved lenders generally offer a wide range of mortgages, including ones backed by the government (VA, USDA or FHA loans) or that comply with Fannie Mae and Freddie Mac's rules.

So once you know what program you want, you may be able to shop among several lenders approved to fund a loan through your program.

Closing costs

Some assistance programs explicitly allow you to use the funds they provide for closing costs. Others may not.

Some programs require a minimum contribution from you when you use them to buy a home. That's because the lender and agency has less risk when the buyer has some of his or her own money tied up in the purchase.

Do I need my credit report to apply Down Payment Assitance program?

Yes, most programs will ask you to have a current credit report on file. You can get yours here..

How to qualify for down payment assistance

Eligibility criteria vary wildly between different programs. So, if you don't qualify for one that covers your area, it's worth hunting further to see if there's one that will help you.

Some programs specialize in helping select groups. So it's possible you may get to the front of the line if you're a veteran/current servicemember, or a firefighter, or work in education, health care or law enforcement. Many others prioritize applicants on average or lower incomes. But anyone with a mortgage preapproval letter can apply.

Many programs insist you take a homebuyer education course before they'll give you any money. You may be able to complete your course online. This is an important step, and understanding homeownership increases your chance of success.

One requirement for a majority of programs (but not nearly four in 10 of them) is that you be a first-time buyer. But don't panic ...

First-time buyer status is not like virginity

Once you lose your virginity, it's gone forever. But you can be a "first-time" buyer more than once.

The U.S. Department of Housing and Urban Development (HUD) counts you as a first-time buyer if you haven't owned a home in the last three years. To be clear, HUD's website says:

"An individual who has had no ownership in a principal residence during the 3-year period ending on the date of purchase of the property. This includes a spouse (if either meets the above test, they are considered first-time homebuyers)."

There's no law to say everyone must adopt HUD's definition. But many programs do. So if you or your spouse haven't had an ownership interest in a primary home over the last three years, carry on and apply for programs for first-time buyers. Obviously, your spousal qualification will only work if you're buying the home jointly with him or her.

The home needs to qualify, too

When you apply to a program, the home you wish to purchase is also a factor. These programs are not for trust fund kids to buy mansions. The home you buy can't be expensive for the area. Usually, your maximum is some percentage of the median price for homes, often up to 115%.

For instance, if hoe prices ranged from $200,000 to $1,000,000 in your area (usually defined as your county or metropolitan statistical area), and half of the homes cost more than $400,000, and half cost less, the median price would be $400,000. If the limit was 115% of this, the maximum eligible home price would be $460,000 ($400,000 * 1.15).

Multifamily dwellings and DPA

Suppose you want to buy a multifamily building, containing two, three or four units. Many down payment assistance programs won't help. But at least one in five will.

You'll probably have to live in one of the units. Presumably, you'll want to rent out the other one, two or three. And that's no problem.

What's on offer where YOU want to buy: DPA state by state

We've covered the main points about how down payment assistance works. And have explored how to qualify for down payment assistance. So now it's time to tell you about the main programs that operate in the state where you want to buy a home. And to tell you how you may be able to discover others.

Other sources of DPA

There are more than 3,100 counties in America and many more cities and towns. And researching them all is impossible. So the information below is mostly state-based. That means you really do need to find other, more local programs yourself. Of course, you could always call your state's housing finance authority and charm a clerk into giving you a list.

California Down Payment Assistance

No state is better served than California when it comes to down payment assistance. There are 357 programs delivered by 231 agencies. So be prepared to spend a little time tracking down the one that suits you best.

The California Housing Finance Agency has the MyHome Assistance program, which can provide a loan of up to 3.5% of the home's purchase price or $10,000 (whichever is less). Qualified educators and others employed in the schools system are not subject to the $10,000 limit.