Down Payment Assistance DPA ROI Calculator
Down Payment Assistance (DPA) programs lend or grant 3-10% of home price as a forgivable second mortgage. Most forgive over 5-10 years if you stay in the home — but selling early triggers recapture. Calculate the effective cost vs paying full down.
How DPA Forgiveness Schedules Work
Most DPA programs use a straight-line forgiveness schedule — 20% per year over 5 years is the most common. Some use cliff vesting (0% forgiven until year 5, then 100%). Read the loan documents: the schedule determines whether selling early triggers full recapture or just a prorated payback.
Recapture Triggers To Watch
Selling, refinancing into a non-DPA loan, renting out the home, or transferring title typically triggers recapture. HUD-funded DPA usually allows refinancing into another HUD-approved loan without recapture, but state and city programs vary widely.
DPA Programs By State
CalHFA (California), MyHome (FL), SETH (TX), MaineHousing, and HUD's HOME program are the largest. Income limits typically cap at 80-120% of area median income. First-time buyer status is usually required but defined as not owning a home in the past 3 years.
Down Payment Assistance DPA ROI Calculator: When the Math Says Skip the Program
DPA isn't always a win. This down payment assistance DPA ROI calculator surfaces the break-even point: if the DPA-driven mortgage rate premium (commonly +0.25% to +0.5% over conventional) costs more in lifetime interest than the DPA grant or forgivable amount saves, you'd be better off saving for the standard down payment instead. Quick rule: a $15,000 DPA grant on a 30-year $400K mortgage at +0.5% rate premium adds roughly $44,000 in lifetime interest — net loss of $29,000 if you stay 30 years. But if you sell or refinance in year 7, the rate premium has only cost you ~$11,000 — net gain $4,000 plus you bought 5 years sooner. The right call depends on your ownership horizon. Per the HUD income limits dataset, 64% of DPA recipients refinance or sell within 7 years — meaning the rate-premium math works in their favor. Use this calculator's "ROI vs Saving Up" output to set your decision threshold; if you plan to stay 15+ years, the standard-down-payment path usually wins on lifetime cost.
Source: HUD HOME Investment Partnerships Program, CFPB DPA consumer guide, state housing finance agency guidelines. Last updated: 2026-06-28.