Key Benefits of DPA Advantage

DPA Advantage is an excellent program designed to help first-time homebuyers who may not have the full down payment saved. Through this program, buyers receive a grant to cover the 3.5% down payment required for a standard FHA loan, 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 program offers flexible credit and income requirements, making it accessible to a wide range of borrowers. With a minimum credit score of 620 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.

One advantage of DPA Advantage is that while it has some income restrictions, the criteria are typically broad enough to include many first-time homebuyers. 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.

With DPA Advantage, the path to owning a home becomes more accessible, giving buyers a way to step into their first home without delay. 

For those who qualify, this program offers a valuable opportunity to start building equity sooner and move into homeownership with greater confidence.

Who is DPA Advantage good for?

• Buyers who do not have at least 2% or even those who do not have any down payment money available.

• Buyers who otherwise qualify for an FHA purchase.

• Buyers who do have at least a 620 minimum credit score.

Special Features of a 

DPA Advantage Loan

• Income Flexibility: Eligible if the borrower’s income is equal to or less than 140% of the median area income.
• First-Time Homebuyers: Designed to support buyers purchasing their first home.
• Special Occupations: Open to current, retired, volunteer, or future first responders, educators, medical personnel, civil servants, and military personnel.
• Community-Focused: Available for properties in underserved census tracts or for borrowers meeting FHA’s income and credit guidelines.

   (only one of these things must be true to qualify)

This loan program is available exclusively for the purchase of owner-occupied 1- or 2-unit properties. With the DPA Advantage program, a grant is applied to cover the required down payment for an FHA loan, and it does not have to be repaid. There’s no required minimum period during which the buyer must hold the property before selling or refinancing, providing 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.

To streamline the process, buyers complete a HUD-approved first-time homebuyer course, which is available online for convenience. Buyers can also negotiate with the seller to cover up to 6% of the purchase price toward prepaids and closing costs, further reducing out-of-pocket expenses.

At Groves Capital, we use today’s technology to make the entire loan process faster, smoother, and less stressful. Unlike other lenders, we take a full application upfront, minimizing requests for additional documentation and ensuring a seamless, efficient experience from start to finish.