What 578 First-Time Buyers and 115 DPA Deals Taught Me
After more than 23 years in mortgage lending, I’ve worked on approximately 578 first-time homebuyer transactions, and approximately 115 of them involved down payment assistance. Those are career-wide numbers. Here’s what they’ve taught me about who
gets to the closing table and who doesn’t.
1. The first “no” is often wrong
Most first-time buyers who think they can’t buy haven’t been shown all of their options. Conventional, FHA, VA, USDA, state programs and local programs all have different rules. A borrower who doesn’t fit one often fits another.
2. The structure of the assistance matters as much as the amount
A $15,000 grant and a $15,000 repayable second are not the same offer. A grant is simply money toward your purchase. A forgivable loan disappears if you stay long enough. A deferred loan comes due when you sell or refinance. A repayable second adds a monthly payment.
Buyers who compare only the headline number can end up with a program that doesn’t fit their plans.
3. “First-time buyer” usually doesn’t mean “never owned”
Most programs define it as not having owned a home in the past three years. Plenty of people who owned a home years ago qualify without knowing it. Some programs, including certain state and local ones, don’t require first-time status at all.
4. Cash to close is bigger than the down payment
Earnest money, inspection, appraisal, closing costs and reserves are separate from the down payment. Assistance can shrink what you bring, but it rarely covers everything. Buyers who only budget for the down payment are the ones surprised at the closing table.
5. The file can fall apart after approval
Opening new credit, changing jobs without telling your lender, or making a large undocumented deposit can turn a smooth file into a delayed one. Most of the trouble I see isn’t from the buyer’s finances. It’s from changes in the middle of the transaction.
6. Timing can matter as much as eligibility
Some programs run out of funding. Others open for a few weeks a year. Being pre-qualified and ready when a window opens matters more than almost anything else.
7. Local programs can stack, but not always
City and county programs sometimes layer on top of state assistance and sometimes don’t. That’s a program-by-program question. It’s one reason I run every buyer’s numbers against everything available in their specific city and county, not just the headline state program.
What I’d tell a first-time buyer today
Get fully underwritten first. Ask about every program, not just one. Look at the structure of the assistance, not just the amount. And keep your file boring until you close.
Ready to see what you qualify for? Run your numbers with me
The transaction counts above are career-wide figures, not specific to any state or year.
Mike Belfor, Branch Manager and Mortgage Loan Originator, American Pacific Mortgage, NMLS 264700 (Company NMLS 1850). Equal Housing Opportunity. Program availability and terms change. Updated September 18, 2026.
Lessons from roughly 578 first-time homebuyer transactions and 115 with down payment assistance: structure, timing, cash to close and what derails files.
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