DPA Advantage first time home buyer loan provides a second mortgage equal to 3.5% of the purchase price for an eligible FHA home purchase. The loan earns 0 interest and has 0 payments and is fully forgiven after 36 on time payments on the first mortgage.
DPA Advantage is an excellent first time home buyer loan program designed to help first-time homebuyers who may not have the full down payment saved. Through this program, buyers receive a forgivable second mortgage to cover the 3.5% down payment required for a standard FHA loan (See full FHA down payment rules here) , allowing them to pursue homeownership without needing to bring funds for a down payment. This opens the door to homeownership for individuals who are ready to buy but may not have the resources for upfront costs.
As an FHA-backed loan, the DPA Advantage first time home buyer loan program offers flexible credit and income requirements, making it accessible to a wide range of borrowers. With a minimum credit score of 600 and a debt-to-income ratio of up to 50%, this program is especially suited for buyers who might otherwise find it challenging to qualify for a loan. Although the grant comes with a slightly higher interest rate, it remains competitive and provides a unique path to homeownership with minimal savings required.
Another advantage of DPA Advantage first time home buyer loan is that there are no income restrictions to qualify. This means that for those just starting out, qualifying is achievable even with moderate income levels. And because it’s an FHA loan, buyers will also benefit from the federal protection and flexibility FHA loans offer, making it easier to become a homeowner while minimizing financial strain.
For those who qualify, this program offers a valuable opportunity to start building equity sooner and move into homeownership with greater confidence. It gives buyers a way to step into their first home without delay.
This loan program is available exclusively for the purchase of owner-occupied 1- or 2-unit properties.
With the DPA Advantage first time home buyer loan program, a second mortgage is provided to cover the required 3.5% minimum FHA down payment. This loan accrues 0% interest, has no monthly payments, and is fully forgiven after 36 on-time payments. There is no required minimum period the buyer must hold the property before selling or refinancing; however, if fewer than 36 payments have been made, the second mortgage becomes repayable. This provides greater flexibility for future plans. While interest rates for this program are slightly higher than standard FHA rates, the benefits make it an excellent choice for eligible buyers.
Buyers can also negotiate with the seller to cover up to 6% of the purchase price toward prepaid items and closing costs, further reducing out-of-pocket expenses.
At Barrett Financial, we use modern technology to make the entire loan process faster, smoother, and less stressful. Unlike many other lenders, we take a full application upfront — minimizing requests for additional documentation and ensuring a seamless, efficient experience from start to finish.
We’ve been helping customers afford the home of their dreams for many years and we love what we do.
Company NMLS: 181106
Personal NMLS: 1599243
OH RM.804600.000
Ron Pero
81 E Mill St., Suite 300
Gahanna, OH 43230
Barrett Financial Group, L.L.C.
2701 East Insightway, Suite 150
Chandler, AZ 85286
Ronald Alvin Pero | NMLS #1599243 | Barrett Financial Group, L.L.C. | NMLS #181106
2701 East Insightway, Suite 150, Chandler, AZ 85286 | OH RM.804600.000 |
Equal Housing Opportunity This is not a commitment to lend. All loans are subject to credit approval. | NMLS Consumer Access Visit Barrett Financial Group’s Website
