Homebuyers using a down payment assistance program to purchase a home

Smart DPA: A New Down Payment Assistance Option for Homebuyers

Buying a home may be more affordable than you think.

Coming up with the money for a down payment and closing costs can be one of the biggest challenges for homebuyers. GMFS Mortgage’s Smart DPA program gives eligible homebuyers access to down payment assistance of up to 5% of the purchase price, helping make homeownership more attainable.

Even better, the updated Smart DPA program now offers USDA financing as an option, along with improved pricing.

And you do not have to be a first-time homebuyer to qualify.

What Is Smart DPA?

Smart DPA is a down payment assistance program designed to help eligible homebuyers with the upfront costs associated with purchasing a home.

Depending on the option and borrower qualifications, assistance may be available as:

  • 3.5% assistance that is forgivable over 3 or 5 years at 0% interest with no monthly payment
  • 3.5% or 5% assistance that is repayable over 10 years at a fixed interest rate

The assistance can help eligible buyers reduce the amount of money they need to bring to the closing table.

What’s New With Smart DPA?

The updated Smart DPA program offers two important changes that could benefit more homebuyers.

Better Pricing

Smart DPA now has improved pricing compared with the previous DPA offering.

A lower overall mortgage payment can make a meaningful difference when you’re determining whether a home fits within your monthly budget.

Your actual interest rate, payment and loan costs will depend on your individual qualifications, loan amount, property and other factors.

New USDA Loan Option

Smart DPA can now be paired with a USDA home loan, providing another potential financing option for eligible buyers.

USDA loans can offer qualified borrowers the opportunity to purchase a home with little or no down payment. With the updated Smart DPA program, eligible borrowers may be able to combine down payment assistance with USDA financing.

This may be particularly helpful for buyers who are looking for homes in eligible rural and suburban areas.

You Don’t Have to Be a First-Time Homebuyer

One of the benefits of Smart DPA is that first-time homebuyer status is not required.

That means eligible repeat buyers may also be able to take advantage of the program.

Whether you’re purchasing your first home, moving into your next home or relocating, it’s worth asking a GMFS Mortgage Loan Officer whether Smart DPA may be an option for you.

How Much Down Payment Assistance Is Available?

Eligible borrowers may qualify for assistance of up to 5% of the purchase price, depending on the loan option and program requirements.

For example, on a $250,000 home:

  • 3.5% assistance would equal $8,750
  • 5% assistance would equal $12,500

The amount and type of assistance available will depend on the borrower’s qualifications and the specific program option.

Down payment assistance may be subject to income, credit, property, loan and other eligibility requirements.

What Types of Loans Can Be Used With Smart DPA?

The updated Smart DPA program may be paired with eligible FHA or USDA first mortgages.

Both are 30-year fixed-rate purchase loans for an owner-occupied primary residence.

FHA Loans

FHA loans are a popular option for homebuyers who may benefit from flexible credit and down payment requirements.

Smart DPA may be combined with FHA financing to help eligible borrowers cover some of their upfront home-buying costs.

USDA Loans

The addition of USDA financing gives eligible buyers another potential path to homeownership.

USDA loans are designed for qualifying properties in eligible areas and may offer 100% financing for qualified borrowers.

A GMFS Mortgage Loan Officer can help you determine whether the property you’re considering and your financial situation meet USDA requirements.

Who May Qualify for Smart DPA?

Smart DPA is available to eligible borrowers who meet the program’s requirements.

Current program guidelines include:

  • Minimum FICO score requirements vary depending on the assistance option
  • The property must be an owner-occupied primary residence
  • The home must be a purchase transaction
  • FHA or USDA financing requirements must be met
  • Additional income, property and loan requirements may apply

Meeting the minimum requirements does not guarantee approval. Every mortgage application is evaluated based on the borrower’s complete financial profile and applicable loan guidelines.

Could Down Payment Assistance Help You Buy a Home?

If you’ve been waiting to buy because you’re concerned about saving enough money for a down payment, a down payment assistance program may be worth exploring.

Smart DPA could potentially help eligible buyers:

  • Reduce the amount of cash needed upfront
  • Access financing with a smaller out-of-pocket contribution
  • Explore USDA financing
  • Purchase a home without being a first-time buyer
  • Revisit homeownership if a previous mortgage option didn’t fit their budget

Your situation may have changed, too. Changes in rates, loan programs, income, credit or available assistance could make a difference in what you qualify for today.

Ready to See If Smart DPA Is Right for You?

Every homebuyer is different, and the best loan program depends on your individual circumstances.

A GMFS Mortgage Loan Officer can review your goals, explain your available down payment assistance options and help you determine whether Smart DPA, FHA, USDA or another mortgage program may be a good fit.

Ready to explore your options?

Connect with GMFS Mortgage today and let’s make home happen.