Down Payment Assistance Loans

A down payment assistance (DPA) loan is designed to help homebuyers reduce the amount they need to save for a down payment. You can combine them with another mortgage to help cover a down payment and/or closing costs. DPA programs are typically available on the state, county, or city level, each with their own requirements and terms.

When Are Down Payment Assistance Programs a Good Fit?

DPA loans are typically reserved for first-time homebuyers, however, previous homeowners may qualify and count as a “first-time homebuyer” if they haven’t owned a home in the past three years. Certain DPA programs are designed for specific groups, such as teachers, police officers, emergency responders, or city employees.

Types of Down Payment Assistance Loans

There are several types of loans available through down payment assistance programs. Our expert loan officers can help you review the DPA programs available to you based on where you live in Oklahoma, Texas, or Arkansas.

• Grants: Some local programs offer grants that don’t require repayment.
• Zero-Interest, Forgivable Loans: A second mortgage that is forgiven after a set amount of time (often five years). You must repay the loan if you move, sell, or refinance before the forgiveness period ends. 
• Zero-Interest, Deferred Payment Loans: A second mortgage that you only repay when you move, sell, or refinance the home. 
• Low-Interest Loans: A second mortgage that you pay with your main mortgage over a certain period of time. These loans spread your down payment and closing costs over multiple years, making homeownership more attainable. 

DPA Program Requirements

You typically must meet the following requirements to obtain a DPA loan, but requirements vary by program.

• You must take a homebuyer education course 
• Your income must be below a certain threshold as set by the program 
• The home must be in an approved location and be used as a primary residence 
• The home must be below the maximum home purchase price (a percentage of your area’s median home purchase price)
• You must contribute some of your own money toward the purchase of the home

Down Payment Assistance Loans in Oklahoma, Texas, and Arkansas

Financial Concepts Mortgage is licensed to provide DPA loans in Oklahoma, Texas, and Arkansas. Each state has its own programs and requirements. We’ve highlighted the first-time homebuyer down payment assistance programs for each state below, but there are others we can help you find as well.

Oklahoma Housing Finance Agency (OHFA) Down Payment Assistance Program

• Provides 3.5% of the total loan amount at closing
• Can be used for FHA, USDA-RD, VA, or conventional loans
• Used for homes priced up to $453,100 in all 77 counties
• Teachers, first responders, and Oklahoma State employees get special rates
• Loans are limited to 30-year fixed rate mortgages 

Visit OHFA  for more information on Oklahoma’s housing programs.

Texas Affordable State Housing Corporation (TSAHC) Home Sweet Texas Home Loan Program

• Provides up to 5% of the loan amount
• Don’t have to be a first-time homebuyer for DPA
• DPA may be given as a forgivable second mortgage or a grant (never repaid)
• 30-year fixed interest rate mortgage loan

Visit TSAHC for more information on Texas’ housing programs.

Arkansas Development Finance Authority (ADFA) Down Payment Assistance Program

• Provides $1,000 to $10,000 toward closing costs
• DPA is a second mortgage, that matches the first, on a 10-year term
• Borrowers get cash back for expenses paid outside closing (POC)

Visit ADFA for more information on Arkansas’ housing programs.