Own Luxury Homes®
How to Qualify for Down Payment Assistance: The Real Requirements
DPA qualification requirements: (1) First-time buyer = not owned in past 3 years (most buyers misunderstand this). (2) Income at or below 80-120% of Area Median Income — in many markets, $80K-$100K household qualifies. (3) Credit score typically 620-640 minimum (some programs 580+). (4) HUD-approved homebuyer education required ($75-$150, 6-8 hours). Purchase price must be at or below county limit (typically near FHA loan limits). Property must be primary residence. Own Luxury Homes® 12-Point Agent Integrity Audit™.
How to Qualify for Down Payment Assistance: The Real Requirements
Most buyers who look at DPA requirements assume they do not qualify without checking the actual numbers. The requirements are more accessible than most people expect.
The 3-Year Rule: Who Counts as a "First-Time Homebuyer"
This is the most important — and most misunderstood — DPA qualification fact. Most DPA programs define "first-time homebuyer" as: anyone who has not owned a primary residence at any point during the past 3 years. Not someone who has literally never owned a home. Practical implications: A buyer who owned a home, sold it in a divorce 4 years ago, and has been renting since: qualifies as a first-time buyer. A buyer who lost a home to foreclosure 5 years ago: qualifies. A buyer who owned a rental property but has never owned the home they live in: may qualify, depending on how the program defines "principal residence ownership." Some DPA programs use an even broader definition and are available to all buyers meeting the income and property limits, regardless of homeownership history. Others restrict to true first-time buyers. Always check the specific program definition rather than assuming disqualification.
Income Limits: What "80-120% of AMI" Actually Means
Area Median Income (AMI) is the median household income for your metropolitan area, calculated annually by HUD. DPA programs typically set income limits at 80%, 100%, or 120% of AMI. Important: AMI is higher than most buyers expect in many markets. In 2025, AMI for a family of 4 in metro areas ranges roughly: • Miami, FL: ~$80,000-$90,000 AMI. 120% AMI = $96,000-$108,000 • Atlanta, GA: ~$90,000-$100,000 AMI. 120% AMI = $108,000-$120,000 • Dallas, TX: ~$85,000-$95,000 AMI. 120% AMI = $102,000-$114,000 A household earning $90,000 in Atlanta may well qualify for DPA programs with a 120% AMI limit. Check the actual HUD AMI limits for your specific county at huduser.gov before assuming you earn too much.
Credit Score, Property, and Education Requirements
Credit score: most DPA programs require a minimum 620–640 credit score, though some FHA-backed DPA programs accept as low as 580. A higher credit score typically means access to more programs and better rate terms. Purchase price limits: DPA programs typically cap the maximum purchase price at or near the FHA conforming loan limit for your county. In 2025, FHA loan limits range from $498,257 in lower-cost areas to $1,149,825 in high-cost areas like NYC and SF metro. Most DPA programs cap well below these maximums, often at $400,000–$600,000. Primary residence: DPA is for owner-occupied primary residences only. Investment properties and second homes are ineligible. HUD-approved homebuyer education: required by virtually all DPA programs. An 8-hour online course through a HUD-approved provider (eCo, Framework, others) typically costs $75–$150 and can be completed at your own pace. Complete it early — the certificate is typically required before program approval.
“The conversation I hate having is with a buyer who tells me they tried to get DPA but were told they made too much or did not qualify as a first-time buyer — without anyone checking the actual AMI limits or the 3-year rule for their specific program. Those rejections are often wrong. I have had buyers who were told no by one program qualify for a different program in the same state with a higher AMI limit or a broader first-time buyer definition. The landscape has 2,000+ programs. One no does not mean all no.”
— Ryan Brown, Principal Broker & CEO, Own Luxury Homes®
Do I qualify for down payment assistance?
Likely more buyers qualify than assume they do. The four main qualifications: (1) First-time buyer status — meaning you have not owned a primary residence in the past 3 years, not that you have literally never owned. (2) Income at or below 80–120% of Area Median Income for your county (AMI is often higher than buyers expect; check huduser.gov). (3) Credit score of at least 620–640 for most programs. (4) Completion of a HUD-approved homebuyer education course. The property must also be within the program's purchase price limit.
What is the income limit for down payment assistance?
Income limits vary by program and are based on Area Median Income (AMI) for your specific county, typically set at 80%, 100%, or 120% of AMI. AMI is calculated annually by HUD. A household earning $85,000 in many metros may be at or below 100% AMI. Check the actual AMI limits at huduser.gov for your county before assuming you earn too much. Many buyers in the $70,000–$110,000 household income range qualify for DPA programs in most markets.
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"The introduction Own Luxury Homes® makes is to a specialist with documented closing history in your specific market — not the county, not the metro, the submarket you're actually selling or buying in. That's the standard we verify before your name goes anywhere."
— Ryan Brown, Principal Broker & CEO, Own Luxury Homes® (FL License BK3626873)