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The DPA Advantage Program is a down payment assistance program given by an approved government entity. This program can be used in conjunction with most FHA programs such as FHA 203(b), FHA Repair Escrow, and FHA Standard 203(k).
The DPA Advantage Program provides eligible borrowers a completely forgivable grant equal to 2% or 3.5% of the purchase price. If the Borrower is approved for the 2% grant, the remaining 1.5% can be given as a gift, as long as it adheres to the FHA gift rules, or paid from the Borrower's own funds.
Since it's a forgivable grant, there will be no second lien on the property, and repayment is not required. Moreover, the DPA Advantage program allows a seller contribution of up to 6% of the purchase price, making it easier for homebuyers to cover the closing costs.
For a borrower to be eligible for the DPA Advantage Program, they must first meet all FHA guidelines with minimum DU Approve or LP Accept finding. This means that DACA recipients are also eligible for the DPA Advantage Program.
In addition to that, the Borrower must also qualify for at least one of these three eligibility factors:
... of the community where the property is located.
When applying for the DPA Advantage Program, the property you want to purchase is also a factor. This means that you cannot ask for down payment assistance and buy a mansion. Leaseholds are also not eligible. The property must be Fee Simple, meaning you have full ownership of the house. Here are the eligible properties for the DPA program:
The DPA Advantage Program provides an excellent homeownership opportunity to low-to-middle income borrowers. If you think it's the right option for you, or if you have questions or need clarifications, call our mortgage broker at (813) 284-4027.
