NMLS #1649161 · Maine & Florida
Buying a home with little or no money down. Here's the real way it works.
Down payment help is one of the best kept secrets in lending. Whether you're buying in Maine, Florida, or moving between the two, let me pull back the curtain.
Or call me directly: (207) 615-7770
The basics
What is down payment assistance?
Down payment assistance, or DPA for short, is exactly what it sounds like. It's help with the money you need to put down on a house.
Most loans expect you to bring at least 3.5 percent of the home price to the closing table. On a 350,000 dollar home, that's over twelve grand just for the down payment. And that's before closing costs, inspection fees, and moving expenses.
A DPA program covers most or all of that down payment for you. Some buyers come to closing with very little of their own savings on the line.
Behind the curtain
Where does the money come from?
This is the part nobody explains. The down payment help is not a gift from the government. It's not free money falling from the sky. It's built into the loan itself.
Here's how. Your main mortgage carries an interest rate that's a little higher than the lowest rate you might see in a TV ad. That slightly higher rate creates extra value on the back end of the loan. That extra value is what funds your down payment.
It's like buying a car with the upgraded package built in. You pay a little more each month, but you drive off the lot today without writing a giant check up front. For a lot of buyers, the math works because the other choice is waiting two or three more years to save up while rent and home prices keep going up.
Standard Loan
Lower rate
But you bring big cash to the closing table.
DPA Loan
Slightly higher rate
The loan brings the cash for you.
The two main types
Two different ways this gets set up
Type 1
The Forgivable Type
The help is technically a small second loan on the house. But here's the kicker. As long as you stay in the home and keep your mortgage in place for a set window of time (often around three years), that second loan disappears. Forgiven. Erased. You never pay it back.
It's a gift with one string attached, and the string is just time. Stay put, and the help becomes a real gift.
Type 2
The Repayable Type
The help is also a small second loan, but you pay it back over time. The payment is usually small because the loan amount is small. It runs alongside your main mortgage.
Think of it like splitting one big payment into one big one and one small one. Most buyers barely notice the second piece because it's a fraction of what they're already paying.
Eligibility at a glance
FHA-backed. Primary residence only.
Loan type
FHA financing
Occupancy
Primary residence only — you live there
Credit
640 minimum FICO. Active Chapter 13 OK with 12 months of on-time payments and trustee approval.
Eligible properties
1–2 unit homes and doublewide manufactured homes on a permanent foundation
Not a fit: investment properties, second homes, single-wides, and 3–4 unit buildings.
Which one fits your situation depends on your plans, the home, the loan type, and a few other moving parts. We figure that out together. Program availability and terms vary and may not be available in every state or for every borrower.
Real dollars
What this can look like in real dollars
Compare
Side by side
Standard Path
Bring your own cash
DPA Path
Loan brings the cash
For illustration only. Not a quote, offer, or commitment to lend. Actual numbers depend on home price, your credit profile, income, debts, the property, the loan program selected, and other underwriting factors. APR will be higher than the note rate. We'll run your real numbers before you commit to anything.
The fit check
Is this a fit for you?
This may be worth a real conversation if you are:
- A first time buyer with good income but not a lot saved yet
- A repeat buyer with cash tied up in a current home or other places
- Someone moving between Maine and Florida who wants to buy on arrival
- A renter watching rent climb every year and wondering when the right time is
- A self employed buyer or commission earner who has the means but doesn't show big bank balances
If any of those sound like you, we should probably talk.
Real talk
What's the catch?
Nothing in lending is truly free, and I'm not going to pretend it is. The trade off with DPA is the slightly higher interest rate on your main mortgage. Over the full life of the loan, that costs more than if you brought your own cash and got the lowest rate.
But here's the real question to ask yourself. Is paying a little more on a home you own today worth more to you than paying rent for three more years while you try to save?
For a lot of buyers in Florida and Maine right now, the answer is yes. Home prices in both markets have a habit of climbing while you wait. Sometimes the cost of waiting is bigger than the cost of the higher rate.
I'll show you both paths with real numbers. You decide what makes sense for your life.
Maine ⇄ Florida
Moving between Maine and Florida? This is built for you.
Relocating is messy. You're juggling a current house, a new job, schools, movers, and the stress of finding a place to land before you even arrive. The last thing you need is to wait six months to save a down payment after the move.
DPA can help you buy on your timeline instead of the bank's. I work with families moving north and south every week, and I know the moving parts that catch people off guard. Bridge financing, timing the sale of your current place, Maine quirks like private roads and oil tanks, Florida quirks like flood zones and HOA budgets. We sort it all before the moving truck shows up.
FAQ
Questions I get all the time
About
Why people send me their family and friends
I'm Travis Penny. I've been in the mortgage business since 2004. I focus on Florida and Maine lending and the families moving between them. That's it. Not five states, not ten loan types I dabble in. I know these programs inside and out, and I know how to spot which one actually fits your life instead of just pushing whatever's easy.
When you call me, you get a real person who picks up the phone, returns texts, and explains things in plain English. No 1 800 numbers. No call centers. No vanishing after the application.
If we work together and the numbers don't actually help you, I'll tell you. I'd rather lose a deal than put someone in a loan that doesn't fit.
More about TravisLet's talk
Let's run your real numbers
Every buyer is different. The only way to know if a DPA program fits you is to have a real conversation about your goals, your income, your timeline, and what you actually want out of this. No pressure, no pushy sales tactics. Just straight answers.
Or call me directly: (207) 615-7770 (tap to call on mobile)
I read every message myself. You'll hear back same day during business hours.