Down Payment Assistance Programs: A Quick Guide for Mortgage Professionals

For many aspiring homeowners, the down payment isn't the only hurdle, it's often the biggest one. Between rising home prices and the cost of everyday living, saving up enough cash to cover a down payment and closing costs can keep otherwise qualified buyers on the sidelines. Down payment assistance (DPA) programs exist to close that gap.

What Is Down Payment Assistance?

Down payment assistance refers to programs, typically offered through state housing agencies, local governments, nonprofits, or specialized lenders, that help eligible homebuyers cover some or all of their down payment and closing costs. DPA generally comes in a few different forms, including grants that don't need to be repaid, forgivable loans that go away after a set period of on-time payments, and deferred loans that are only repaid when the borrower sells, refinances, or pays off the first mortgage.

Programs like Chenoa Fund describe their mission as helping creditworthy families who have the income to afford a home but haven't been able to save enough for the down payment. That's the role DPA plays across the industry: it's not about changing who qualifies for a mortgage, it's about helping qualified borrowers get there sooner.

National Programs

PwrTPO currently offers two national DPA programs, both paired with FHA financing:

Chenoa Fund (CBC Mortgage Agency)

Chenoa Fund offers down payment assistance in the form of either a repayable or a forgivable second mortgage, giving mortgage professionals flexibility depending on the borrower's scenario. It's available in nearly every state.

Essex

Essex offers a comparable structure, with both a repayable (amortized) DPA option and a 100% forgivable DPA option, each paired with an FHA first mortgage. Like Chenoa, Essex is broadly available with only a small number of state exceptions.

State-Specific Programs

In addition to our national options, we also offer several state-specific DPA programs. These vary by state in terms of funding source, structure, and eligibility, so details are best discussed directly with your Account Executive:

● Montana Board of Housing (MBOHA)

● Colorado Housing and Finance Authority (CHFA)

● Metro DPA

● Coming This Week: Ohio Housing Finance Agency (OHFA)

We're working on rolling out OHFA as an additional state-specific DPA option. Stay tuned for more details as this program becomes available.

Next Steps

DPA structures, eligibility requirements, and availability can vary and change over time. Rather than trying to memorize every guideline, the best move is to bring your scenario to your PwrTPO Account Executive, who can walk you through current program details and help you find the right fit for your borrower.

This information is provided for mortgage professionals only and is intended as a general overview. It is not intended for consumer use or distribution. Program availability, terms, and eligibility requirements vary by product and are subject to change without notice. This is not a commitment to lend. Equal Housing Lender. NMLS #1124061.

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