Down Payment Assistance (DPA) (DPA)
Direct definition
Grants or second-lien loans from state or local programs that help buyers cover down payment and closing costs.
Written by the Vabasso Mortgage Editorial Team · Reviewed against agency and federal sources · Read our editorial policy for how we research and review mortgage content
Plain-English explanation
DPA structures vary — some are forgivable grants after a residency period, others are silent second mortgages, others carry monthly payments.
Why it matters
DPA can accelerate homeownership for buyers who have income but not accumulated savings.
Where you may see it
- Loan program guidelines
- Closing Disclosure
- Underwriting conditions
A real-world example
A state DPA program provides $10,000 in forgivable assistance after five years of primary occupancy.
Educational and illustrative only
A common misunderstanding
Not all down payment assistance is a grant you never repay — some programs are structured as loans or liens with their own conditions.
Ask Vabasso AI
This glossary provides general educational information. Mortgage terminology, qualification methods, forms, timelines, fees, program rules, and legal meanings may vary by lender, investor, loan program, property, occupancy, state, and transaction. Definitions do not represent loan approval, legal advice, tax advice, or a commitment to lend.
- Author
- Vabasso Mortgage Editorial Team
- Reviewed by
- Vabasso Mortgage Licensed Advisory Team
- Last reviewed
- July 30, 2026