Do I have to be a first-time buyer to use DPA?

Not always. Many assistance programs are aimed at first-time buyers, and a number of them use a broader definition than people expect. Commonly, someone who has not owned a primary residence within the past three years can count as first-time again. Other programs have no first-time requirement at all, and some are targeted at particular professions or geographic areas instead. Because the eligibility rules differ program by program, it is worth asking rather than assuming you are excluded.

Does down payment assistance have to be repaid?

It depends entirely on the program's structure, and the three common forms behave very differently. Some assistance is a grant that is not repaid. Some is a forgivable second lien that is written off gradually as long as you stay in the home for a set period, with repayment triggered if you sell or refinance early. And some is a genuine second-lien loan that is repaid, either with monthly payments or as a lump sum when the home is sold. Before you commit to any program, make sure you understand which of those three you are signing up for and what triggers repayment; we walk through that with you in writing.

Lexington, SC

Down Payment Assistance in Lexington, SC

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How down payment assistance fits into a purchase

Down payment assistance, usually shortened to DPA, is help with the up-front cash a purchase requires: the down payment, the closing costs, or some combination of the two. South Carolina has several assistance programs available to buyers, commonly administered through SC Housing and comparable state and local sources. They are not a loan program on their own; they layer on top of one, and the specifics differ from program to program.

The structure is usually the same in outline. You are approved for a first mortgage, often an FHA or conventional loan, and the assistance comes alongside it to cover the cash you would otherwise bring to closing. That means the first mortgage still has to stand up on its own: your credit, income, and debt ratios are underwritten as they normally would be. Assistance solves a cash problem, not a qualifying problem.

Most programs attach conditions. Income limits and maximum purchase prices are typical, and both vary by program and often by county, so what a Lexington buyer qualifies for depends on their household income, the price of the home, and which programs are accepting applications at the time. Some programs also require a homebuyer education course. Because availability and terms change, the honest answer to 'what can I get' is that it depends on your situation and the current program landscape, which is exactly what we review with you before you start shopping.

Assistance can go toward the down payment, closing costs, or both.
Typically paired with an FHA or conventional first mortgage that you still have to qualify for.
Income and purchase price limits usually apply and vary by program.
Program availability and terms change, so specifics depend on your situation and timing.

Common questions

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