This blog post is a recap of the “Those Darn DPAs! - The MythBusters Edition” webinar hosted by TSAHC and Down Payment Resource on June 15, 2021. This webinar offers insight on the many myths surrounding down payment assistance programs. To view the recording of the webinar, click here.
Addressing the Top 5 Myths About DPA Programs
Myth #1: DPA Programs are Too Expensive
Presented by Aubrey Miller with the Q&A Mortgage Team at Cardinal Financial. Aubrey is located in Dallas, TX and is authorized to help borrowers statewide.
False! DPA programs can help buyers get into a home faster and allow them to use their savings for other homeownership costs, like making a competitive bid or buying furniture.
Myth #2: DPA Makes Sales Contracts More Complicated
Presented by Stacy Lynn Schriever with Premier Nationwide Lending. Stacy is located in Dallas, TX and is authorized to help borrowers statewide.
Contrary to popular belief, most DPA programs do not require a special sales contract! Buyers can also use DPA to cover closing costs and do not have to disclose that they are using a DPA program to the seller of the home.
Myth #3: It Takes Longer to Close When Using DPA
Presented by Jamey Hodge with Guild Mortgage Company. Jamey is located in Arlington, TX and is authorized to help borrowers statewide.
The process of closing with a DPA program doesn’t take any longer than closing with a traditional mortgage loan. TSAHC’s approval process happens at the same time as the lender approval, often within the time period of a few days!
Myth #4: DPA is Only for First-time Home Buyers or Certain Professions
Presented by Gracie Perez with Cardinal Financial. Gracie is located in Dallas, TX and is authorized to help borrowers statewide.
While it’s true that Mortgage Credit Certificate programs are only for first-time buyers, many DPA programs are actually open to both first-time and repeat home buyers! TSAHC also offers two down payment assistance programs, honoring Texans who work within certain professions while also allowing those outside those industries to access down payment assistance.
Myth #5: It’s Hard to Meet Income and Credit Score Requirements
Presented by Jordan O’Brien with Cardinal Financial. Jordan is located in Plano, TX and is authorized to help borrowers statewide.
TSAHC’s homeownership programs are available to home buyers with low-to-moderate incomes! It just takes a few minutes to check eligibility for our programs using the Eligibility Quiz. TSAHC's DPA programs also require a minimum credit score of 620 and feature interest rates that are not dependent on credit scores. This means that home buyers with a 620 credit score qualify for the same interest rate as a borrower with a 720 credit score.
Resources and Best Practices for Lenders and REALTORs®
Presented by Sean Moss with Down Payment Resource and Sarah Ellinor with TSAHC.
Best Practices for Loan Officers
Lenders have the ability to become experts on down payment assistance in several ways, including:
Best Practices for REALTORs®
Real estate agents have a variety of options when it comes to learning more about down payment assistance programs, including:
Other Available Resources
On the House blog posts are meant to provide general information on various housing-related issues, research and programs. We are not liable for any errors or inaccuracies in the information provided by blog sources. Furthermore, this blog is not legal advice and should not be used as a substitute for legal advice from a licensed professional attorney.