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Down Payment Assistance

The Down Payment Assistance (DPA) Program helps qualified low- to moderate-income families afford to purchase a home. Local governments and nonprofit partners can use this funding to make homeownership more attainable, helping families move into safe, stable housing in their communities. This program is available to local jurisdictions and their housing partners, not directly to individual homebuyers.

Eligible Applicants

  • Community Partner (Nonprofit organization)
  • Local Governments
    • Any county, municipality, city, tribal government, special district organized under Title 32, school district, district, or a housing authority created under Part 2 of Article 4 of Title 29.

Eligible Households

First time homebuyers, prioritizing first generation homebuyers.

Eligible Housing Types

  • Single Family Homes
  • Duplexes
  • Townhomes
  • Condominiums
  • Manufactured and modular homes on permanent foundations or properly tied down, on land owned by the homeowner client, or within a resident owned community mobile home park.
  • Any of the above, on Community Land Trust Property.

Eligible Communities

For a project to be eligible for Proposition 123 funding, the county, municipality or tribal government must first file a commitment to increase affordable housing within each jurisdiction by 3% per year and implement a 90-day expedited review process for affordable housing projects by December 31, 2026.

New commitments will be accepted November 1, 2025

A list of jurisdictions that have filed commitments is available.

Eligible Projects 

  • Down Payment Assistance (DPA)
  • DPA and Repair

Affordability Period

5 Years

AMI Limitations

Up to 120% AMI

Allowable Loan Terms DPA

  • Max loan of up to 20% of actual home cost
  • Loan-to-value up to 100%
  • Loans are non-forgivable
    • Amortized Loans
    • Deferred
    • Interest only payments by borrowers (deferred principal)
  • Front end debt to income ratio at or below 35%
    • Front-end ratio is defined as the percentage of gross monthly income a homeowner pays for monthly housing costs. Housing costs include: Mortgage Principal, Mortgage Interest, Property Taxes, Mortgage And Homeowners Insurance, Homeowner Association Fees, Land Lease Fees, And Metropolitan District Fees.

Allowable Loan Terms DPA and Repair

  • Front end debt to income ratio at or below 35%
  • Can allow for a DPA loan up to 110% loan-to-value when immediate repairs are needed (energy efficiency upgrades included) at time of purchase

Administering Agency Operational Funds

Not to exceed 10% of the total agreement amount

Additional Due Diligence Requirements

The application requirements can be found in the Development Application Instructions and the project-specific application material checklists are found on the DOH website. Please note the checklists may not be exhaustive depending on the specific nuances of a project.  

Reporting Requirements

Awardees will be required to report quarterly to DOH. Reports will include, but are not limited to:

  • A description of each awardee’s use of the grant funds.
  • Program performance progress (loans closed, program accomplishments/difficulties, etc.)
  • Beneficiary information including but not limited to demographic (e.g., race and ethnicity), geographic, income, and program participants.
  • Program Income reporting semi-annually, or more frequently if required.
  • Other State reporting requirements as required.
  • Please be sure to refer to the published and periodically updated Term Sheet and FAQs immediately prior to application as additional requirements and/or waivers may be published

Application and Award Process

Applications should be submitted through Neighborly and follow typical DOH Funding Application guidelines. Contact your Asset Manager for additional information.

  • Award and Determination: After DOH staff underwrites applications, staff recommendations will be presented to the State Housing Board (SHB). SHB recommendations will then be presented to the DOLA Executive Director for final approval. A contract between DOH and the applicant can start being drafted at this time.

Contact

Contact your Asset Manager for additional information.

This form should be used to report problems or issues with this website. Questions pertaining to a program or service provided by DOLA should be addressed to contact information located on the specific program pages.

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