Down Payment Assistance for Clients (DPA)

HUD and Fannie Mae/Freddie Mac Qualifying Income Levels for Down Payment Assistance Differs!

Links to Income Levels, Differences and How to Calculate Above 100% Income Levels

Check Income Levels for Down Payment Assistance Programs Upfront!


Links to Income Levels


Differences in Income Calculations

  • HUD Income Limit levels for 50% and 80% are not the same as Fannie Mae/Freddie Mac 50% and 80% Area Median Income (AMI) levels.
  • HUD Income Limits are based off of family size. Fannie Mae/Freddie Mac AMI is based on income of qualifying borrower(s), not family size.
  • Fannie Mae 80% AMI is maximum income for Home Ready Affordable product.
  • Freddie Mac 80% AMI is maximum income for Home Possible Affordable product.


Income Levels at 100% and Above


How to Calculate Income Levels Above 100% for All Mortgage Types Above

  • For 115% Income: Multiply 100% income x 115%
  • For 120% Income: Multiply 100% income x 120%
  • For 140% Income: Multiply 100% income x 140%

For 160% Income: Multiply 100% income x 160%New Paragraph



DPA Program Frequently Asked Questions

  • What Is DPA And How Is If Funded?

    Many cities and localities including Indian Tribes and counties (usually listed as SHIP and NSP under type) have downpayment 2nd mortgages and grant assistance for eligible homebuyers. Florida at the state level also has DPA that is both the 1st and 2nd mtg and also just a 2nd mtg. 


    City, county, and state DPA programs are funded by local or state government entities and specific dollar amounts are allocated throughout the year. 

  • WHY include Wholesaler DPA Programs?

    In the last few years, wholesalers have begun to step up their game with DPA product offerings to independent MLOs. In addition to combined 1st mortgages with a 2nd  mortgage DPA included, more 1st mortgages where DPA 2nds can be added with select wholesalers are coming into the market. In 2022, the Florida Housing Finance Corp. made state Hometown Heroes, Bond and TBA programs available to independent loan originators through wholesale lenders, making the independent loan originator channel of DPA business more robust and competitive than ever! Why are these multiple channels of  DPA important? Wholesaler business is not dependent on state funding, so when funds for DPA run out, wholesalers can still provide independent loan originators with DPA programs. And a number of wholesaler programs offer higher ratios with better credit scores, a few have no max. income criteria, and interest rates are highly competitive with state programs.


    Wholesaler proprietary programs are available both in and outside of Florida.

  • If I Want DPA, Where Should I Start?

    Check County SHIP Funds First!


    The benefit of using county SHIP is that it provides a 2nd mortgage that is attached to an FHA, VA, Conventional, and USDA 1st mortgage with current interest rates. Sometimes 1st and 2nd DPA programs have a higher 1st and 2nd mortgage interest rate.


    However, county SHIP and local city DPA often have separate underwriting guidelines and restrictions, like income and ratio maximums and credit score minimums that are different than the 1st mortgage.


    Also, many county SHIP and city DPA programs require loan originators, realtors, and the client to take a HUD-approved class on homeownership in order to utilize DPA funds. Make sure to check all DPA underwriting criteria, availability of funds, and if you must be on an approved list before issuing a client pre-approval to find a home.  


    County SHIP programs listed above are available in Florida only.

Please let us know when you hear of new programs across the U.S. by emailing clients2homeowners@gmail.com. 

DPA Articles to Help MLOs

2 Ways Loan Originators Can Locate Down Payment Assistance for Clients

By Pam Marron • April 24, 2024
Down Payment Connect is already being used by MLOs and Realtors. Now it's available to HUD Counselors through HomePrep! Down payment assistance is quickly rising to the top need for clients wishing to purchase a home. Down Payment Connect , the back-end data provider for the parent Downpaymentresource.com , houses every down payment assistance program in the US and provides extremely detailed information laid out in a consistent format for each DPA program in their system. Throughout the last two years, Downpaymentresource.com administrators have worked with MLO’s and the HomePrep developers to add nearly all wholesale down payment assistance programs to their platform and they didn't stop there! Extensive filters that allow for selection of specific client needs such as type (ie. SFR, manufactured homes, condos, multi-family, ADU’s), uses like renovation, above AMI income levels, non-1st time homebuyers are just a few of the filters you will find along with stand alone 2nd mortgages, combined 1st and 2nd mortgages and grants. DownpaymentResource.com is also in many MLS systems across the US and provides limited directory information and a free landing page for realtors to promote that they use DPA. Both MLO’s and realtors can subscribe to Down Payment Connect to get more of the extensive directory and back-end tools. Now, through HomePrep, HUD counselors can also use the Down Payment Connect system to filter trhough DPA programs that clients are qualified for, and can even provide wholesale programs when working with an independent loan originator (often called a mortgage broker)! Through HomePrep, HUD counselors are now able to provide MLO’s and clients with the DPA programs that they have found the client is eligible for.

Empowering MLOs: Clients2Homeowners.com's New Chapter in Mortgage Solutions

By Pam Marron • April 10, 2023
Clients2Homeowners.com makes a pivot!

Down Payment Connect is a Game Changer for Mortgage Loan Originators

By Pam Marron • January 26, 2023
Mortgage Loan Originators, Realtors and HUD Housing Counselors Who Need to Find and Promote Down Payment Assistance (DPA) to Clients Need this Tool!

Confusion Still Exists About Down Payment Assistance (DPA) for Many Loan Originators.

By By Pam Marron | Clients2Homeowners.com • March 16, 2022
Here’s How to Organize DPA for Your Area and Start Selling!
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