Down Payment Assistance
First Time Home Buyer | Best Grants & Down Payment Assistance Programs Now 2024
Texas Real Estate Sales Agent #454749, AXEN Realty LLC · Senior Loan Officer, NMLS ID #877741, NEXA Mortgage, LLC
Patrick Kevin Fagan walks through the best grants and down payment assistance programs for first-time home buyers, covering how DPA works, the five restrictions that come with most programs, and two hidden costs to watch for: above-market rates and second liens. You will learn about two of the strongest structures, a special-purpose credit program grant that avoids a second lien and a 1% down conventional option that keeps your rate competitive. If you are buying in San Antonio, Bexar County, or anywhere in Texas, this is a straight-talk overview of how to lower your cash to close.
What You Will Learn
There are thousands of down payment assistance programs across the country, and the catch is that most of them share the same rulebook. In this video Patrick walks through how these grants and DPA programs actually work, the five restrictions nearly every program shares, and the two hidden costs that can quietly raise your rate or add a second lien to your home.
He then shows two structures that avoid those problems: a special-purpose credit program grant and a 1% down conventional option. Whether you are buying your first home in San Antonio, across Bexar County, or anywhere else in Texas, this overview helps you size up any DPA offer before you say yes.
Key Takeaways
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How Down Payment Assistance Actually Works
Grants, forgivable seconds, and deferred loans all fill the same gap, your down payment and closing costs, but each one gets repaid differently.
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The Five Restrictions Every Program Shares
Income limits tied to area median income, debt-to-income caps, credit score minimums, residency rules, and grant money that runs out partway through the year.
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Two Hidden Costs to Watch For
Many DPA programs pair you with a higher-than-market rate, and others put a second lien on your property that can hurt when you sell or refinance.
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The SPCP Grant That Avoids the Second Lien
A special-purpose credit program grant can cover your down payment without a second lien, which keeps your title clean and your refinance options open.
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The 1% Down Conventional Alternative
With the right lender and program, a 1% down conventional loan gets you in with very little cash and keeps your rate at fair market instead of a DPA premium.
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How to Pick the Right Program for You
Comparing the rate, the second lien, and the true cash to close tells you whether a program saves you money or quietly costs you more over time.
Companion Guide
This video pairs with Patrick's complete written guide that lays out every program type, the five restrictions, the two adverse effects, and the two smarter structures in plain English. Read the full guide: the best grants and down payment assistance programs for first-time buyers and see the numbers laid out step by step.
See the Full Written GuideContinue Learning
Read the transcript of this video, word for word, in a simple text format.
Map out the grants and programs in writing on Patrick's Texas down payment assistance guide.
Buying in Texas? Patrick explains the best down payment assistance programs in Texas and who qualifies for each one.
New to DPA? Down payment assistance programs, explained covers how grants and DPA loans reduce what you bring to closing.
Using a grant with an FHA loan? Can you combine down payment assistance with an FHA loan in Texas? shows how the two can stack.
Have Questions About Grants or Down Payment Assistance?
Patrick is a dual-licensed Loan Officer and REALTOR who can check the programs available for your address, compare the rates, and structure your offer and financing together so your cash to close stays as low as possible.
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About Patrick Kevin Fagan, REALTOR®
Patrick Kevin Fagan is a Texas Real Estate Sales Agent (#454749) with AXEN Realty LLC and a Senior Loan Officer (NMLS ID #877741) with NEXA Mortgage, LLC (NMLS #1660690). He brings 23+ years in mortgage lending and 19 years in real estate, serving homebuyers, homeowners, and sellers across Greater San Antonio and the Texas Hill Country.
