Homebuyers’ Guide to Down Payment Assistance: FAQs and How It Works

By Gregg Tepper

I have been married to my wonderful wife Letha for 29 years. We have 3 children: Max, Alexander and Charlotte. I have been a licensed Realtor in the New Orleans area for 20 years and am the Operator of The Tepper Group with Keller Williams Realty in Mandeville. Our team services the entire New Orleans and Baton Rouge metro areas. Our team of partners has well over 40 years of experience. In 2024 we helped 132 families buy, sell and lease homes, land and commercial investments.

So, you’ve been scrolling Zillow, dreaming of a home, but that five-figure down payment number keeps slamming the door shut. What if I told you the door might already be unlocked?

Here’s the truth straight from my colleague, mortgage pro Todd Johnson, Area Manager at Envoy Mortgage: Down Payment Assistance (DPA) isn’t a mythical unicorn for a lucky few. It’s a practical, everyday tool they use to turn “someday” buyers into homeowners. The best part? It’s probably nothing like you’ve imagined.

Let’s break down exactly how it works and why it could be your game-changer:

1. It teams up with your main mortgage. Think of DPA as the ultimate wingman for your loan. It works alongside a regular mortgage, most often an FHA loan. That FHA loan asks for 3.5% down. DPA? It swoops in to cover that for you.

2. It slashes your upfront cash to the bone. For a $200,000 house, that 3.5% is $7,000 before we even talk closing costs. With DPA covering the down payment, your move-in costs can shrink dramatically. We’re talking very little out of your pocket, not a giant stash from years of saving.

3. Your credit score might already be high enough. You don’t need perfect credit. While 620 is a common benchmark, they have programs that can work with scores as low as 600. This isn’t a barrier; it’s a starting line.

4. The help is a simple second mortgage. The assistance usually comes in the form of a manageable second loan that you pay back over time. Sometimes, depending on the program, you might not have to pay it back at all. No tricks, just a structured boost.

5. It turns waiting years into moving in months. This is the biggest win. Instead of watching rent checks disappear for another two years while you save, DPA lets you start building equity now. You trade a monthly expense for a monthly investment in your future.

6. It’s flexible, but it’s for your home. You can use it on a single-family home, a townhouse, a condo, or even a duplex if you live in one unit. The one rule? It must be for the home you’ll live in every day, your primary residence.

So, what does all this mean for you? It means the path to homeownership doesn’t have to start with a mountain of cash you don’t have yet. It can start with a conversation about the tools that already exist to help you.

Ready to turn this possibility into your reality? My role is to connect you with the right experts and find the perfect home to apply these strategies.

If Todd’s insights on down payment assistance sparked your interest, let’s get the conversation started. For expert mortgage guidance, you can contact Todd Johnson directly at Envoy Mortgage by calling (502) 608-0731, emailing toddjohnson@envoymortgage.com, or visiting savewithenvoy.com.

Then, reach out to me, Gregg Tepper at Keller Williams Realty, and we’ll find your perfect match. You can call or text me at 985-218-5445, email TGroup@kw.com, or visit FindNolaHomes.com. Your dream home isn’t just a wish, it’s a waiting, addressable goal. Let’s find it together.