Understanding Down Payment Assistance in Riverside & San Bernardino Counties

Down payment assistance can reduce the amount of cash needed to buy a home—but every program works differently. Understanding the structure matters just as much as knowing the dollar amount.

What is down payment assistance?

Down payment assistance (DPA) is financing or a benefit that may help with a down payment and, in some cases, eligible closing costs. Assistance may come from a state or local agency, nonprofit organization, employer, lender, or housing program. Availability, funding, income limits, purchase-price limits, and property requirements can change.

Common types of assistance

• Grants generally do not require repayment when all program rules are met.

• Deferred-payment loans usually postpone payments until you sell, refinance, transfer the property, or reach another specified event.

• Forgivable loans may be forgiven gradually if you remain in the home and meet the program’s requirements.

• Shared-appreciation programs may provide help now in exchange for a portion of the home’s future appreciation.

• Amortizing second mortgages require regular payments in addition to the first mortgage.

Who may qualify?

Eligibility often depends on household income, credit history, debt-to-income ratio, available assets, occupancy, homebuyer education, property location, and the first mortgage selected. “First-time homebuyer” often means someone who has not owned a principal residence during the previous three years, but definitions vary by program.

Questions to ask before choosing a program

1. Is the assistance a grant, loan, or shared-appreciation arrangement?

2. When must it be repaid?

3. Does it have an interest rate or monthly payment?

4. Is there a minimum occupancy period?

5. Are there income, purchase-price, or geographic limits?

6. Which first mortgages can be combined with it?

7. Will it affect the interest rate or total closing costs?

8. What happens if I refinance or sell?

9. Is homebuyer education required?

10. Is funding currently available?

Assistance is only one part of the plan

A larger assistance amount is not automatically the lowest-cost option. Compare the full monthly payment, cash to close, interest rate, mortgage insurance, second-lien terms, and long-term repayment. Seller credits may also help with eligible closing costs, subject to loan and appraisal rules.

Your next step

FirstHome.us can help buyers compare available options and understand the tradeoffs before choosing a home. Request a no-obligation homebuyer consultation for Riverside County, San Bernardino County, and nearby Inland Empire communities.

Call 951-294-9978 or email alin@apabond.com.

Program availability and eligibility are subject to change. This page is educational and is not a commitment to lend or a guarantee of assistance.

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