Down payment assistance gifts are funds from family, friends, employers, or programs, used for home purchase.  They require a gift letter to prove they’re not loans, with rules varying by loan type (Conventional, FHA, VA, USDA) on who can give and required documentation like donor bank statements showing fund removal and borrower deposits

A “non-repayable” payment assistance loan usually refers to a forgivable second mortgage, often part of a Down Payment Assistance (DPA) program.  The loan balance decreases over time (e.g., 20% per year for 5 years) or is forgiven if specific conditions (like staying in the home or working for a certain employer) are met. These loans, sometimes called “soft seconds,” defer payments until you sell, refinance, or meet the forgiveness term, functioning like a grant if conditions are met, otherwise requiring repayment, sometimes with interest. 

A down payment loan are repayable low-interest loans, that helps with home purchase costs, requiring repayment like a normal loan but with flexible terms, possibly starting later (deferred payment loans) or requiring a balloon payment at the end, differing from grants or forgivable loans by its structured payback plan.

Eligibility requirements for down payment assistance programs vary but generally focus on income thresholds, first-time homebuyer status, and property location.

The specific requirements vary typically require:

• 620+ credit score
• Good work history
• Verifiable income