They Are Only for First-Time Homebuyers: While many down payment assistance programs are indeed aimed at first-time homebuyers, some are available to repeat buyers as well. Eligibility rules can differ from one program to another, so it’s essential to explore your options and not assume that you’re ineligible just because you’ve purchased a home before.

They Are Only for Low-Income Buyers: One common misconception is that down payment assistance programs are exclusively for low-income individuals or families. While some programs do target low-income households, many are designed to assist a broader range of buyers with varying income levels and financial situations. Eligibility criteria can vary widely between programs, so it’s essential to research and find one that suits your needs.

They Are Available Everywhere: Down payment assistance programs vary by location, and their availability can depend on local and state government initiatives, as well as non-profit organizations and lenders. Some areas may have more robust programs than others, and some programs may be temporary or subject to budget limitations.

They Cover the Entire Down Payment: Down payment assistance programs typically do not cover the entire down payment. Instead, they provide a portion of the funds needed to purchase a home, and buyers are often required to contribute some of their own money. The exact amount of assistance varies by program and may be a fixed dollar amount or a percentage of the purchase price.

Understanding the facts about down payment assistance loans can help borrowers make informed decisions about their mortgage options and determine if a down payment assistance loan is the right choice for them.