Down Payment Assistance

Down payment assistance (DPA) loans help homebuyers cover some or all of their down payment and/or closing costs, making homeownership more accessible, especially for first-time buyers or those with limited savings. These programs can come in the form of grants, forgivable loans, or low-interest second mortgages. Below are details on specific down payment assistance programs:

One+ (1% Down Product)

Rocket Mortgage’s One+ program is a special loan option designed to reduce upfront costs for homebuyers with low to moderate incomes.

Key Features:

  • Only 1% down payment required from the borrower.

  • Rocket Mortgage contributes an additional 2%, bringing the total equity to 3% at closing.

  • No private mortgage insurance (PMI), which helps lower monthly payments.

  • Available for homebuyers earning ≤ 80% of the area median income (AMI).

  • Can be used for conventional fixed-rate loans.

Best for: First-time and low-to-moderate-income buyers who want a low down payment option without PMI.

80/20 Community Combo Loan

Our 80/20 Community Combo loan is a no-down-payment loan designed to help homebuyers finance their entire purchase.

Key Features:

  • No down payment required—loan structure consists of:

    • 80% first mortgage (primary loan).

    • 20% second mortgage (secondary loan covering the down payment).

  • No private mortgage insurance (PMI), helping reduce monthly costs.

  • Designed for low-to-moderate-income borrowers.

  • Income limits and property eligibility apply.

Best for: Buyers who want 100% financing with no PMI, making homeownership possible without saving for a down payment.

PHFA Down Payment Assistance Loans

The Pennsylvania Housing Finance Agency (PHFA) offers down payment and closing cost assistance to eligible homebuyers purchasing a home in Pennsylvania.

Key Features:

  • Available in combination with PHFA’s first mortgage programs.

  • Borrowers can receive up to 5% of the home’s purchase price (maximum $10,000) for down payment and closing costs.

  • Structured as a 0% interest, no monthly payment loan, which is repaid when the home is sold, refinanced, or paid off.

  • Available to first-time homebuyers and certain repeat buyers in targeted areas.

  • Income and purchase price limits apply based on county and household size.

Best for: First-time buyers in Pennsylvania who need low-cost assistance with their down payment and closing costs.

New Jersey Bond Program (NJHMFA Down Payment Assistance Program)

The New Jersey Housing and Mortgage Finance Agency (NJHMFA) offers a Down Payment Assistance (DPA) Program to help first-time homebuyers and eligible buyers in targeted areas afford a home by reducing upfront costs.

Key Features:

  • Up to $15,000 in assistance for down payment and/or closing costs.

  • The assistance is a forgivable loan, meaning no repayment is required if the borrower stays in the home for at least five years.

  • Must be used in combination with an NJHMFA first mortgage program (FHA, VA, USDA, or conventional).

  • Available to first-time homebuyers, defined as someone who has not owned a home in the past three years, except in designated target areas where repeat buyers may qualify.

  • Income and purchase price limits apply, based on county and household size.

  • Homebuyer education may be required.

Best for: First-time homebuyers in New Jersey who need forgivable down payment assistance to reduce upfront costs.