Which type of down payment assistance is best?

A grant is best if you can get one, because nothing is repaid. Otherwise it depends on how long you will own the home: a forgivable second is excellent past the forgiveness period and expensive before it, while a deferred second costs the same whenever you leave.

What is the difference between a forgivable and a deferred second?

A forgivable second reduces to zero over a stated occupancy period, so staying long enough means you repay nothing. A deferred second never forgives; the full amount is due when you sell, refinance or pay off the first mortgage.

Is Florida or Colorado assistance more generous?

They are structured differently rather than one being larger. Florida's statewide programs are administered centrally with occupation tiers and county price limits, while Colorado layers a statewide agency program with strong city and metro programs. The right comparison is always at the county level.

Compare down payment assistance options

Assistance comes in four repayment structures, attaches to four common first-mortgage types, and is administered differently in every state. These tables put the differences next to each other so you can see what each choice costs you at sale, at refinance and in your monthly payment. Terms below are general categories, not an offer of any specific program.

Side-by-side comparison worksheets weighing grant, forgivable, deferred and repayable assistance — Illustrative photo. Down payment assistance terms are set by each administering agency, not by Simply Approved Mortgages.

Published August 30, 2026Last updated September 4, 2026

Reviewed September 2026

Written and reviewed by the Simply Approved Mortgages Team at Simply Approved Mortgages LLC, NMLS #2620881.Verify on NMLS Consumer Access

Repayment structures side by side

Structure	Repayment	Lien	Monthly payment	Effect on DTI	Best for	Watch for
Grant	Never	Usually none	None	No effect	Any buyer who qualifies	Some grants still carry an occupancy agreement
Forgivable second	Forgiven over a set term	Recorded second	None	No effect	Buyers staying past the term	Cliff schedules forgive nothing until the last day
Deferred second	Due at sale, refinance or payoff	Recorded second	None	No effect	Buyers who need cash to close now	Reduces the equity you take away at sale
Repayable second	Monthly until paid	Recorded second	Yes	Counts in debt-to-income	Buyers with room in their ratios	Lowers the purchase price you qualify for

Structures follow the administering agency's own note and mortgage. Read the program document before relying on any category above.

First-mortgage pairings compared

First mortgage	Down payment	Fit with assistance	Cost note
FHA	3.5% typical minimum investment	Most widely accepted by housing finance agencies	Mortgage insurance generally stays for the life of the loan at low down payments
Conventional	3%–5% low-down options	Often cheaper for stronger credit profiles	Mortgage insurance is priced by score and cancels at the right equity level
VA	No down payment required	Assistance is applied to closing costs and the funding fee	Not every agency program approves a VA first mortgage
USDA	No down payment in eligible rural areas	Assistance covers closing costs and prepaids	Property location and income eligibility are both restricted

The deeper explanation of each pairing is in the guide on pairing assistance with your first mortgage.

Florida and Colorado compared

Florida

Administered by: State housing finance agency plus city and county funds
Typical structure: Second liens paired with agency first mortgages; occupation tiers exist
Limits: Income and purchase-price limits published per county

See Florida programs

Colorado

Administered by: Statewide agency program plus strong metro and city programs
Typical structure: Grants and second liens depending on the program chosen
Limits: Income limits vary sharply between Front Range counties

See Colorado programs

Questions about choosing between options

Which type of down payment assistance is best?: A grant is best if you can get one, because nothing is repaid. Otherwise it depends on how long you will own the home: a forgivable second is excellent past the forgiveness period and expensive before it, while a deferred second costs the same whenever you leave.
What is the difference between a forgivable and a deferred second?: A forgivable second reduces to zero over a stated occupancy period, so staying long enough means you repay nothing. A deferred second never forgives; the full amount is due when you sell, refinance or pay off the first mortgage.
Is Florida or Colorado assistance more generous?: They are structured differently rather than one being larger. Florida's statewide programs are administered centrally with occupation tiers and county price limits, while Colorado layers a statewide agency program with strong city and metro programs. The right comparison is always at the county level.

To model actual numbers, use the assistance calculator, or run the DPA finder to see which structures are available where you are buying.

Monthly review

September 2026 Assistance Option Comparison Review

We reviewed repayment structures published in agency program guides, first-mortgage secondary financing rules, Florida and Colorado program terms and county income and purchase-price limits relevant to this page. No material changes requiring substantive revisions were identified this month. The information and sources shown here remain current as of our latest review.

Checked: repayment structures published in agency program guides
Checked: first-mortgage secondary financing rules
Checked: Florida and Colorado program terms
Checked: county income and purchase-price limits

Current data & page updates

Page last reviewed: September 4, 2026
Page last substantively updated: September 4, 2026
Next scheduled review: October 4, 2026
Current monthly review: September 2026
Live data feed: No

Licensing & Disclosures

Simply Approved Mortgages LLC | NMLS #2620881

Florida Mortgage Broker License #MBR7685 | Colorado Mortgage Company Registration

Simply Approved Mortgages LLC is a mortgage broker and is not a direct lender. We arrange residential mortgage loans in Florida and Colorado.

Eligibility, terms, conditions, and availability vary by borrower, property, lender, loan program, and state. Not all products or programs are available in all states. All loans are subject to lender underwriting and approval. Equal Housing Opportunity.

Verify our license on NMLS Consumer Access

DPA amount calculator and eligibility checker

Estimate your assistance amount, the second-lien payment and where you stand against the program rules. Illustrative only — not a quote, offer or commitment to lend.

Simply Approved Mortgages DPA

DPA amount calculator & eligibility checker

Estimate 3.5% assistance on the lesser of price or appraisal, layered over a 30-year fixed FHA first mortgage.

Estimated DPA

$14,000

3.5% of $400,000

2nd-lien P&I

$174

10-yr · 8.500%

Amount calculator

Purchase priceAppraised value

Assistance tier

Illustrative 1st-mortgage rate (%)Used only to show the 2nd-lien rate (1st + 2%). Not a quote.

Lesser of price or appraisal: $400,000
DPA at 3.5%: $14,000
2nd-lien term: 10-year fixed, repayable
2nd-lien rate: 8.500%
Monthly P&I: $174/mo

Illustrative only — not a quote, lock, offer, or commitment to lend. Binding figures appear only on your Loan Estimate and Closing Disclosure.

Eligibility checker

Credit score580+ required.Occupancy

State you're buying inProperty type

Documentable qualifying income?

Willing to complete homebuyer education before closing?

Property in NY, WA, USVI, Guam, MP, or AS?

Answer each question above to see your preliminary result.

Talk to a Loan Officer →

Preliminary self-check only. Not a quote, lock, offer, or commitment to lend. Simply Approved Mortgages is not affiliated with HUD, FHA, VA, USDA, FHFA, or any government agency. Equal Housing Opportunity. NMLS# 2620881.

Keep reading

Related pages on down payment assistance, local markets and the numbers behind each program.

Our own down payment assistance program — up to 5% toward your primary home

Simply Approved Mortgages LLC · NMLS# 2620881

In addition to matching you with agency programs, we offer our own assistance program, provided through our wholesale lender partner and arranged by Simply Approved Mortgages: up to 5% of the lesser of the purchase price or appraised value, structured as a repayable 10-year fixed second mortgage on a qualifying primary residence. It layers with FHA 203(b) or FHA 203(k) purchase first mortgages only, and the second lien is priced at the first-mortgage rate plus 2.00%. It is fully amortizing — not a grant and not forgivable — so your Loan Officer will show a side-by-side comparison before you commit.

Offered through our wholesale lender partner

Up to 5% of the lesser of purchase price or appraised value

Repayable 10-year fixed second mortgage

Layers with FHA 203(b) or FHA 203(k) purchase first mortgages

Second-lien rate = first-mortgage rate + 2.00%

Fully amortizing — not a grant and not forgivable

Qualifying primary residence only

Down payment assistance changes fast. Stay ahead of it.

New funding rounds, closed programs, and updated income and price limits for Florida and Colorado buyers — in one short email each month.

Licensing notice: Simply Approved Mortgages LLC arranges residential mortgage loans in Florida and Colorado only. The briefing and this website are educational content — not an offer, solicitation, advertisement of credit terms or commitment to lend, and no mortgage services are offered in states where we are not licensed.

The cheapest assistance depends on how long you stay

Simply Approved Mortgages runs the same comparison on every file: what the assistance costs at year three, year five and year ten. A forgivable second with a five-year term is free to a buyer who stays and expensive to one who relocates in year four, while a deferred second costs the same whenever you leave. That timeline question outranks the headline amount.

Takeaway: Pick the structure that matches how long you realistically expect to own the home.

The only way to know which program, down-payment structure, and closing-cost strategy actually fits your file is to walk through it with a Simply Approved Mortgages Loan Officer who can compare the real numbers side-by-side on a Loan Estimate.