For many aspiring homeowners, especially first-time buyers, saving enough for a down payment can feel impossible. Between rising home prices and lingering student debt, even the most motivated clients may feel discouraged. That’s where your expertise as a real estate agent can make a life-changing difference. By helping clients explore down payment assistance (DPA) programs, you can turn “someday” buyers into homeowners today.

Know What Down Payment Assistance Is, and Who It Helps

Across the country, thousands of down payment assistance programs are available through state and local governments, nonprofit organizations, and lenders. These programs are often aimed at first-time homebuyers or those purchasing a primary residence, not an investment property.

While eligibility varies, many programs share common criteria:

• The buyer’s income must be below the Area Median Income (AMI).
  
• The home must be a single-family residence (with some exceptions).
  
• The buyer must qualify for a 30-year fixed-rate mortgage.
  
• Some programs target public service employees or specific geographic areas.
  
• Most require completion of a homebuyer education course.
  

Help Clients Understand Their Options

Not all assistance is created equal. As an agent, it’s important to explain the key differences so clients can make informed decisions:

• Grants and Gifts: These are funds that do not require repayment, though buyers should check for any potential tax implications.
  
• Forgivable Loans: Structured as a second mortgage, these loans are forgiven after the homeowner meets certain occupancy or tenure requirements.
  
• Low-Interest or Deferred Loans: Some programs offer second mortgages at reduced interest rates or allow repayment only at refinancing or sale.
  
• Matching Savings Programs (IDAs): These accounts match the buyer’s savings toward their down payment, ideal for buyers willing to plan ahead.
  
• Lender-Specific Programs: Many major banks, including Chase and Wells Fargo, offer proprietary down payment or closing cost assistance for qualified buyers.
  

Position Yourself as a Trusted Resource

Guiding clients toward credible assistance programs builds trust and sets you apart. Encourage buyers to:

• Start with the housing finance agency or local housing authority website for your state.
  
• Connect with reputable nonprofit housing organizations in their area.
  
• Consult a loan officer or mortgage broker familiar with DPA options in your market.
  

You can also collaborate with lenders who specialize in first-time homebuyer programs to ensure your clients are fully informed and pre-approved for the right assistance before beginning their home search.

Educate and Empower

Many buyers don’t realize how accessible these programs can be. A short conversation about down payment assistance can literally open doors. Consider hosting a first-time buyer workshop or sharing educational resources on your social media or website. When you position yourself as a knowledgeable advisor, you not only help your clients achieve homeownership, you also grow your reputation as a trusted expert in your community.

Bottom Line: Your buyers may not need to wait years to save for a 20% down payment. With thousands of assistance programs available nationwide, you can help them find the support they need to buy a home sooner and with more confidence.

Join Fathom Realty and Grow Your Impact

At Fathom Realty, we empower agents with the tools, training, and technology to serve clients at the highest level, while keeping more of what they earn. From innovative business systems and coaching to powerful marketing and lead generation tools, Fathom meets you where you are in your real estate career and helps you grow from there.

Ready to elevate your business and make a bigger difference in your clients’ lives? Learn more and join Fathom Realty today.