3-Year Forgivable Home Buyer Down Payment Assistance
The 3-Year Forgivable DPA Program, explained plainly
A second-lien down payment assistance program that costs nothing to carry and disappears entirely after three years — as long as you stay in the home. Here's exactly how it works, who qualifies, and where the fine print matters.
Program Basics
How the assistance is structured, what it costs, and when it's forgiven.
What is the 3-Year Forgivable DPA program?
It's down payment assistance structured as a second mortgage that is completely forgiven after three years, as long as you keep living in the home.
Rather than a no-strings cash grant, the lender places a second lien on the property for the assistance amount. Structuring it as a lien — instead of a gift — lets the program offer a larger benefit while protecting against buyers who'd sell or refinance right away purely to pocket the assistance.
"Forgiven" isn't the same as "free no matter what." The lien only disappears if you meet the program's holding requirements through the three-year mark. Sell or refinance before then, and the unforgiven balance can come due.
Does this assistance require monthly payments?
No. The second lien carries 0% interest and requires no monthly principal payments.
Because the loan doesn't accrue interest or require payments, it doesn't affect your monthly housing budget or your debt-to-income ratio the way a second mortgage normally would — which is what makes it usable as real down payment money rather than another bill.
No monthly payment doesn't mean no obligation — the balance is still recorded against the property. It shows up in a title search and has to be accounted for if you sell or refinance before it's forgiven.
How much assistance can I receive?
Typically 3.5% or 5% of the purchase price, which can be used toward your down payment or closing costs.
Those two percentages line up with common minimum down payment thresholds — 3.5% matches FHA's minimum, for example — so the assistance is sized to cover the exact gap that usually keeps buyers out of homeownership.
Which percentage you qualify for, and whether it can be split between down payment and closing costs, depends on your specific loan scenario. This is a "call to confirm your number" detail, not a one-size-fits-all figure.
When is the grant completely forgiven?
The entire balance is forgiven on the exact third anniversary of your loan note date.
Tying forgiveness to the note date — not the closing date, calendar year, or move-in date — gives everyone an unambiguous, contractually defined finish line, with no gray area about when the clock starts or stops.
Because forgiveness happens on a specific date, selling or refinancing even a few weeks early can mean paying back a balance you were one month away from having wiped out. If you're anticipating a move, map your timeline against that anniversary date before you commit.
Eligibility & Qualifications
Who this program is open to, and which loans it pairs with.
What minimum credit score do I need?
A minimum FICO score of 640 to qualify for the forgivable option.
640 is a common cutoff for affordable-lending and DPA-paired programs because it balances access for buyers with thinner or recovering credit against the risk profile lenders need to keep the program funded for future buyers.
Meeting the 640 minimum gets you in the door, but your rate, approval odds, and other loan terms are still evaluated on the full picture — income, debt, and the rest of your file — not the credit score alone.
Do I have to be a first-time homebuyer?
No — this program is open to both first-time buyers and repeat homeowners.
Many state and local DPA programs restrict eligibility to first-time buyers to target a specific policy goal. This program is designed more broadly, so it doesn't carry that restriction.
"No first-time buyer requirement" is specific to this program — don't assume it carries over to other DPA options you might be comparing it against, since many do have that restriction.
Are there any household income limits?
No — there are no income caps or restrictions for this specific program.
Income-capped DPA programs exist to target assistance at lower- and moderate-income households. This program instead ties eligibility to credit score and loan type, opening it to a wider range of buyers regardless of earnings.
Again, this is specific to this program. It's a meaningful differentiator if a buyer was previously turned away from a different DPA option for earning too much.
What types of loans can use this DPA?
The assistance must be paired with an underlying FHA 30-year fixed or USDA 30-year fixed first mortgage.
DPA second liens are typically only compatible with the first-mortgage programs they're underwritten alongside. FHA and USDA loans already accommodate layered financing and flexible down payment structures, which is why they're the pairing this program supports.
If you're set on a conventional or VA loan, this specific DPA program won't be able to attach to it — worth surfacing early, before a buyer gets attached to a rate or lender they've already been talking to for a different loan type.
Do I need to take a homebuyer education class?
No — unlike many state DPA programs, homebuyer counseling courses are not required.
State housing finance agency programs often mandate education courses as a condition of the funding source. Since this program isn't funded or administered that way, it doesn't inherit that requirement.
Even though it's not required, a short homebuyer education course can still be genuinely useful, especially for a first-time buyer — it's just not a gate you have to clear to use this program.
Want to see your actual numbers?
Every scenario is different — call to confirm your down payment percentage, loan pairing, and whether you qualify. Bob Elliot Call 612-868-5500
Unlock Your Homeownership Dreams
Welcome to our 3-Year Forgivable Home Buyer Down Payment Assistance program, designed to make the dream of homeownership a reality for many. We understand that saving for a down payment can be one of the biggest hurdles for potential homeowners. Our program steps in to offer you the financial support you need as you embark on this exciting journey.
This initiative provides assistance that is completely forgivable if you meet certain criteria, allowing you to put less emphasis on money and more on finding your ideal home. With our help, you can focus on what truly matters—your future.
Eligibility for this program is simple. It targets first-time homebuyers or individuals who have not owned a home in the last three years. Given the changing housing market, we encourage you to explore if you qualify for this unique opportunity.
Imagine how different your path to homeownership can be with this kind of support! With our assistance, you can secure your home without the stress of repaying an immediate debt.
Forgiveness Criteria
Accessible under certain requirements.
First-Time Buyer Focus
Designed for new homeowners.
Easy Application Process
Streamlined for your convenience.
Contact Us for More Information
Ready to learn more about our 3-Year Forgivable Down Payment Assistance? Let us guide you towards securing your future home. Contact us today!