There are several First Time Homebuyer programs available. These involve a very low down payment, some as low as 1%. More typically, these types of loans have a second component involved, where the lender will work with a Down Payment Assistance provider or DPA. DPAs may be city, county or state-funded. The DPA will investigate the borrower’s credit history and income. If the borrower does not earn more than the maximum allowed to qualify for the program, then the DPA will issue a certificate of completion, which stipulates the amount of funds the DPA is dedicating towards the down payment and closing costs. In many cases, depending on the borrower’s “need” profile, the funds from the DPA program may cover all of the down payment and the closing costs. There may be a small investment required from the borrower, by the DPA program. This ranges from $500 to $1,000.