Conventional down payment assistance
DPA is not one product. It can be a grant, deferred second, forgivable second, amortizing second or shared-equity structure.
Start with the first mortgage
The assistance must be compatible with the selected Fannie or Freddie first-mortgage program, occupancy, LTV/CLTV limits and subordinate-financing requirements.
Then review the DPA itself
Program rules can add income limits, credit-score floors, homebuyer education, approved-lender requirements, geographic limits and repayment triggers at sale or refinance.
Grant vs. second mortgage
A true grant does not require repayment. Assistance that creates a lien is subordinate financing even when payments are deferred or the balance may eventually be forgiven.
Official guide baseline
Fannie Mae Selling Guide · Freddie Mac Seller/Servicer Guide
Program terms, AUS findings and lender overlays control. DPA program eligibility must also be verified with the program administrator.