Compare down payment assistance options
Published Last updated
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.
Quick answer: How do you compare assistance programs?
Compare four things side by side: the award amount, how repayment works, the income and purchase-price caps, and the occupancy or forgiveness period. A smaller forgivable award often beats a larger repayable one, because the repayable second adds a monthly payment that reduces the price you can qualify for.
TL;DR
- Award size alone is the wrong comparison.
- Repayment structure drives long-run cost.
- A repayable second reduces your qualifying price.
Quick questions
- Can programs be layered?
- Frequently, if each program's rules allow subordinate financing from the other. The lender confirms layering before reserving funds.
Published Last updated
- Reviewed September 2026
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
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
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.
See your own numbers
Free tools using current stored limits and your inputs. Estimates are educational, not loan offers.
- Repayable DPA estimatorSee how a repayable second mortgage could affect a monthly budget.Open tool
- Affordability calculatorEstimate a comfortable price range from your income and debts.Open tool
- DPA calculatorEstimate how assistance could change your cash to close.Open tool
Want a personalized quote?
Buying in Florida or Colorado? Request a scenario review from a licensed mortgage broker.
October 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
This page's scheduled monthly review is overdue. The section above reflects our latest completed review, not a new one for the current month.
Current data & page updates
- Page last reviewed
- September 27, 2026
- Page last substantively updated
- September 27, 2026
- Next scheduled review
- October 27, 2026
- Current monthly review
- October 2026
- Live data feed
- No
This page is past its scheduled review date and is queued for the next review cycle.
Licensing & Disclosures
Simply Approved Mortgages LLC | NMLS #2620881
Florida Branch Office (Miami, FL) | Branch NMLS #2688012
Florida Mortgage Broker License #MBR7685 | Colorado Mortgage Company Registration
Business Phone: (877) 813-7219
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Broker identification. Simply Approved Mortgages LLC is a mortgage broker and is not a direct lender. We arrange residential mortgage loans with third-party lenders and do not make the lender's final credit decision or fund the loan. We arrange residential mortgage loans in Florida and Colorado.
Down payment assistance programs. Down payment and closing-cost assistance programs listed or referenced on this site may be administered by third parties, including state housing finance agencies, cities, counties, Federal Home Loan Banks, nonprofit organizations, lenders, and other program sponsors. Simply Approved Mortgages LLC does not administer, control, fund, or guarantee third-party assistance unless expressly stated otherwise.
Listing or displaying a program does not constitute an offer of that program, a representation that funding is currently available, or a determination that a borrower or property qualifies. Program availability, funding, assistance amounts, income limits, purchase-price limits, credit requirements, occupancy requirements, geographic restrictions, homebuyer education requirements, participating-lender requirements, repayment terms, and other eligibility criteria vary by program and may change or become unavailable without notice. Eligibility and current program terms must be confirmed for the particular transaction.
Types of assistance. Down payment or closing-cost assistance may be structured as a grant, forgivable loan, deferred-payment loan, repayable second mortgage or other form of assistance. Assistance structured as a lien or secondary financing may be subject to repayment, forgiveness, occupancy, resale, refinance, or other conditions. Assistance should not be considered "free money" unless the applicable program documents expressly provide that the assistance is a grant with no repayment obligation.
Receiving or potentially qualifying for down payment assistance does not guarantee mortgage approval, guarantee receipt of assistance, or necessarily eliminate all funds that a borrower may be required to contribute to a transaction.
Credit and program terms. All loans are subject to lender credit approval, underwriting, acceptable appraisal, title review, insurance, and supporting documentation. Eligibility, programs, rates, APRs, points, fees, payments, terms, loan amounts, down-payment requirements, and availability may vary based on borrower, property, occupancy, credit profile, loan-to-value ratio, debt-to-income ratio, lender, assistance program, and location and may change without notice. Not all borrowers, properties, products, or programs will qualify or be available in every location. Nothing on this site constitutes a loan approval, rate lock, offer, commitment to lend, guarantee of assistance, or guarantee of closing.
Rates, payments and calculators. Rates, APRs, payments, down payments, estimated assistance amounts, affordability, home prices, closing costs, savings, and other calculator or scenario results displayed on this site are estimates or illustrations unless expressly stated otherwise. Actual eligibility, assistance, and loan terms may differ. Taxes, homeowners insurance, mortgage insurance, association dues, lender charges, broker compensation, discount points, third-party charges, and other costs may apply. Advertised rates, payments, APRs, down payments, and other credit terms are subject to the assumptions and disclosures presented with the applicable advertisement.
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