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Down Payment Assistance: Programs That Can Help You Buy Sooner

Down payment assistance isn't one single program. Depending on your situation, it might be a repayable second mortgage, a one-time grant, or a program offered through your state or local housing agency. Our local Mortgage Bankers can help you sort out what you actually qualify for.

Atlantic Bay Mortgage Group offers access to down payment assistance options for eligible buyers across Virginia, North Carolina, Georgia, Florida, and beyond, including two of our own programs built to help you get into a home with less upfront cash.

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Is down payment assistance right for you?

Down payment assistance can work differently depending on your loan type and your situation. Which scenario sounds the most like yours?

  • Atlantic Bay Launch pairs an FHA or VA first mortgage with a repayable second mortgage that covers part of your down payment, so you can buy with less cash upfront.

    Learn About Atlantic Bay Launch

  • Homebound, Atlantic Bay's lender-funded grant program, gives eligible first-time buyers a $2,000 grant toward their down payment, closing costs, or prepaid items, and it never has to be repaid.

    See If You Qualify for Homebound

  • Down payment assistance isn't limited to what a lender offers directly. Thousands of programs exist nationwide through state, local, nonprofit, and employer sources, and you may qualify for more than one. Here are a few unique down payment sources worth considering.

    Talk to a Mortgage Banker

  • Not all down payment assistance works the same way. Some funds never have to be repaid, others with flexible repayment terms, and others are structured as a second mortgage with its own monthly payment. We'll help you understand exactly what you agree to before you commit to anything.

    Talk to a Mortgage Banker

  • With more than one program potentially available to you, it helps to see how they stack up before deciding which path makes sense for your situation.

    Compare Down Payment Assistance Options
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What is down payment assistance?

Down payment assistance refers to programs that help homebuyers cover some or all the upfront cash needed to purchase a home, most often the down payment, though some programs can also help with closing costs.

  • Grants: funds that don't have to be repaid, often tied to specific eligibility requirements like being a first-time homebuyer
  • Repayable second mortgages: a second loan, separate from your first mortgage, that you repay over time, often with its own interest rate
  • Deferred-payment loans: funds that don't require payments until you sell, refinance, or pay off your first mortgage
  • Forgivable loans: funds that convert to a grant if you stay in the home for a set number of years

For a broader look at how this works, see our guide to down payment assistance and how to know if you qualify.

See If You Qualify

Atlantic Bay Launch: Down payment assistance for FHA and VA buyers

Atlantic Bay Launch pairs an FHA or VA first mortgage with a repayable second mortgage that can cover part of your down payment. This assistance is a loan, not a grant or a gift, and it comes with its own repayment terms.

How Atlantic Bay Launch works

  • Available with FHA or VA first mortgages on a home purchase
  • FHA borrowers can choose between a 3.5% or 5.0% repayable down payment assistance option
  • VA borrowers can choose between a 1.5% or 2.0% repayable down payment assistance option
  • The second mortgage is a 10-year fixed-rate loan with its own monthly payment
  • Its interest rate is set higher than your first mortgage rate
  • Must be used to purchase a primary residence with 1 to 2 units
  • Your first mortgage still needs to meet standard FHA or VA underwriting guidelines

Because this assistance has to be repaid, your Mortgage Banker will factor the second mortgage's monthly payment into your overall qualification, the same as any other debt. Here's more on how your down payment affects the mortgage process overall.

See If You Qualify

Homebound: Atlantic Bay's grant program for first-time buyers

Homebound is Atlantic Bay's own lender-funded grant program for first-time homebuyers. Unlike Atlantic Bay Launch, Homebound funds don't have to be repaid.

How homebound works

  • i
    Eligible borrowers receive a $2,000 grant
  • i
    Funds can go toward your down payment (after you've made your own minimum contribution), closing costs, or prepaid items
  • i
    Funds cannot be used to pay a buyer-broker commission
  • i
    At least one borrower on the loan must meet the agency's definition of a first-time homebuyer (here’s a first-time homebuyer checklist)
  • i
    A minimum 620 credit score is required
  • i
    The home must be your primary residence
  • i
    Your loan must be a HomeReady or Home Possible loan
  • i
    You'll still need to contribute your own funds toward the purchase, typically 3% (5% for a 2 to 4-unit home), since Homebound funds can't count toward that contribution

Read more: Homebound, Atlantic Bay's First-Time Homebuyer Grant

See If You Qualify for Homebound

Other down payment assistance options to explore

Atlantic Bay's own programs are only part of the picture. Thousands of down payment assistance programs exist nationwide through state housing finance agencies, local governments, nonprofits, and even some employers. Depending on where you live and your financial situation, you may qualify for more than one, and some can even be paired with a program like Launch or Homebound. 

A Mortgage Banker can help you figure out which of these you might qualify for based on where you're buying and your specific situation. 

Talk to a Mortgage Banker

Comparing your down payment assistance options

Every program has its own rules, so the right fit depends on your loan type, your timeline, and how comfortable you are with a second monthly payment versus a one-time grant.

FeatureLoan TypesFirst-Time Buyer RequiredFunding Amount
Atlantic Bay Launch
FHA, VA
No
3.5%-5.0% (FHA) or 1.5%-2.0% (VA) of purchase price
Homebound
Conventional (HomeReady / Home Possible)
Yes
$2,000
Typical Third-Party DPA
Varies by program
Often, but not always
Varies by program
Funds Type
Loan Types
First-Time Buyer Required
Funding Amount
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Down Payment Assistance Requirements

  • Credit score: minimums vary by program; Homebound requires at least 620
  • Loan type: assistance is often tied to a specific first mortgage type, like FHA, VA, or certain Conventional programs
  • Occupancy: nearly all down payment assistance programs require the home to be your primary residence
  • First-time buyer status: required for some programs, like Homebound, but not others, like Atlantic Bay Launch
  • Income limits: some third-party programs cap eligibility based on your household income

Unfamiliar with terms like PMI or DTI? Here's a quick breakdown of common mortgage acronyms.

See If You Qualify

Frequently asked questions about down payment assistance

  • Down payment assistance refers to programs that help cover some or all the upfront cash needed to buy a home. It can come as a grant, a repayable loan, a deferred-payment loan, or a forgivable loan, depending on the program.

  • Not always. Some down payment assistance is a grant that never has to be repaid, like Homebound. Other assistance, like Atlantic Bay Launch, is structured as a repayable second mortgage with its own monthly payment.

  • Atlantic Bay Launch pairs an FHA or VA first mortgage with a repayable second mortgage that can help cover part of your down payment. It's a loan, not a grant, and comes with a 10-year fixed repayment term.

  • Homebound is Atlantic Bay's lender-funded grant program for eligible first-time homebuyers. It provides a $2,000 non-repayable grant that can go toward your down payment, closing costs, or prepaid items.

  • It depends on the program. Homebound requires at least one borrower to meet the first-time homebuyer definition. Atlantic Bay Launch doesn't have that requirement, but it does require an FHA or VA first mortgage.

  • In some cases, yes, though it depends on the specific programs involved and their individual requirements. A Mortgage Banker can help you understand what can be combined based on your situation.

  • It depends on the type. A repayable option like Atlantic Bay Launch adds its own monthly payment on top of your first mortgage. A grant like Homebound doesn't add a monthly payment since it never has to be repaid.

  • It varies by program. Homebound requires a minimum 620 credit score. Other programs, including state and local options, may have their own credit requirements.

  • Yes. Thousands of programs exist nationwide through state housing finance agencies, local governments, nonprofits, and employers. A Mortgage Banker can help you explore what you might qualify for beyond Atlantic Bay's own programs.

Explore more about down payment assistance

Want to go deeper on a specific part of down payment assistance? Here's more to explore.

Homebound: Atlantic Bay's First-Time Homebuyer GrantDown Payment Requirements: 4 Common Questions AnsweredFirst-Time Homebuyer ChecklistMortgage Insurance ExplainedWhat You Need to Know About FHA LoansVA LoansHome Affordability
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Take the next step toward your down payment assistance options

The right down payment assistance option, or combination of options, depends on your loan type, your timeline, and where you're buying. Atlantic Bay is here to help you sort through what's actually available to you. See if you qualify by completing our quick online form or connecting with a local Mortgage Banker who can walk you through your specific options.

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Loan programs may change at any time with or without notice. Information deemed reliable but not guaranteed. All loans subject to income verification, credit approval and property appraisal. Not a commitment to lend. Atlantic Bay Mortgage Group, L.L.C. NMLS #72043 (nmlsconsumeraccess.org) is an Equal Housing Lender.