Buying a home is an exciting milestone, but for many buyers, saving for a down payment can be a challenge. Fortunately, down payment assistance (DPA) programs can help bridge the gap, making homeownership more accessible—especially for first-time buyers and those with limited savings.

At North Star Mortgage Network, we offer FHA down payment assistance programs that can help you secure a home with little upfront cash. Let’s explore how these programs work and how they can benefit you.

How FHA Down Payment Assistance Works

Our FHA down payment assistance program is designed to help eligible borrowers cover their required 3.5% down payment on an FHA 30-year loan—whether it’s a standard loan amount or a high-balance loan.

The assistance is provided in the form of a second lien, meaning it’s an additional loan or forgivable grant that helps with the upfront costs of homeownership. Borrowers have two options:

✅ Repayable second lien – A structured repayment plan for the assistance received.
✅ Forgivable second lien – No repayment required if certain conditions are met (e.g., staying in the home for a set period).

Who Qualifies for FHA Down Payment Assistance?

One of the biggest advantages of this program is its flexibility. Here’s what you need to know:

✔ Minimum credit score of 600 (AUS approval allows no max DTI)
✔ Minimum credit score of 660 with max 45% DTI for manual underwriting
✔ No income limits – This program is open to all eligible borrowers, regardless of income level
✔ Non-occupant co-borrowers allowed – A great option for buyers who need extra qualifying power

Eligible Property Types

Our FHA DPA program isn’t just for single-family homes! You can purchase a variety of property types, including:

Single-Family Residences (SFRs)
2-Unit Properties (duplexes)
Planned Unit Developments (PUDs)
Townhomes
Agency-Approved Condos
Double & Triple-Wide Manufactured Homes

With a maximum loan-to-value (LTV) of 96.5% and combined loan-to-value (CLTV) of 101.5%, this program ensures you can secure your home with minimal upfront costs.

Why Consider Down Payment Assistance?

Reduces upfront costs, allowing you to buy sooner rather than later
Helps preserve savings for future home expenses and emergencies
Expands homeownership opportunities for those without large cash reserves
Flexible repayment options to fit different financial situations

Is Down Payment Assistance Right for You?

If you’re ready to buy a home but struggling with the down payment, this program could be the solution. With no income limits, flexible credit score requirements, and multiple property types eligible, homeownership is more within reach than you think.

At North Star Mortgage Network, we specialize in finding the best mortgage solutions for our clients. We’ll guide you through the process, ensuring you take advantage of every available resource to make your dream of homeownership a reality.

Want to learn more about down payment assistance? Contact us today to see if you qualify!