DPA Program Guidelines
Detailed guidelines for all three FHA Down Payment Assistance programs offered through Options Home Loans LLC — including eligibility, loan structure, and key notes for each program.
All three programs are FHA 30-Year Fixed purchase loans with no income limits and no first-time homebuyer requirement. The borrower's minimum cash contribution is $0.00. Options Home Loans LLC is a licensed mortgage broker in Irvine, CA — NMLS #2221613.
100% DPA
Zero Down — No Payment on the 2nd Loan
A fully subordinated second lien covers your 3.5% FHA down payment. The second loan carries a 0% interest rate with no monthly payment — making this the most affordable zero-down option for buyers who qualify.
Program Highlights
Eligibility Requirements
- Minimum 620 FICO score (AUS approval)
- 660 FICO required for manual underwrite
- Primary residence only — 1 or 2 units
- FHA 30-Year Fixed purchase transactions only
- No income restrictions — any income level qualifies
- No first-time homebuyer requirement
- Must meet standard FHA guidelines (DTI, employment, etc.)
- Property must meet FHA appraisal standards
Important Notes
- The 2nd lien is fully subordinated — no monthly payment, no interest accrual
- 2/1 Buydown available to reduce first-year payment further
- Both Borrower-Paid Compensation (BPC) and Lender-Paid Compensation (LPC) structures available
- High Balance loan limits available in high-cost areas like Orange County, CA
100% DPA Plus
Better Pricing for Well-Qualified Borrowers
The DPA Plus program offers 100% financing with a second lien priced at 2% above the first lien rate, amortized over 10 years. This structure provides better first-lien pricing than Program 1 — making it the preferred option for borrowers with stronger credit profiles.
Program Highlights
Eligibility Requirements
- No minimum FICO stated — standard FHA AUS approval required
- Primary residence only — 1 or 2 units
- FHA 30-Year Fixed purchase transactions only
- No income restrictions — any income level qualifies
- No first-time homebuyer requirement
- Must meet standard FHA guidelines (DTI, employment, etc.)
- Property must meet FHA appraisal standards
Important Notes
- The 2nd lien is amortized over 10 years — there IS a monthly payment on the second lien
- First lien pricing is typically better than Program 1 due to the structured 2nd lien
- Best suited for borrowers who can handle a small 2nd lien payment in exchange for a lower first lien rate
- Both BPC and LPC structures available
- High Balance loan limits available in high-cost areas like Orange County, CA
101.5% DPA Deluxe
Down Payment AND Closing Costs Covered
The DPA Deluxe program goes beyond covering the down payment — the second lien is sized at 5% of the purchase price, covering the 3.5% FHA down payment plus an additional 1.5% toward closing costs. This is the most comprehensive zero-out-of-pocket option available.
Program Highlights
Eligibility Requirements
- Minimum 620 FICO score (AUS approval)
- 660 FICO required for manual underwrite
- Refer/Eligible AUS findings accepted
- Primary residence only — 1 or 2 units
- FHA 30-Year Fixed purchase transactions only — no refinances
- No income restrictions — any income level qualifies
- No first-time homebuyer requirement
- Must meet standard FHA guidelines (DTI, employment, etc.)
- Property must meet FHA appraisal standards
Important Notes
- CLTV exceeds 100% — the 5% DPA second lien covers 3.5% down payment + 1.5% closing costs
- Refer/Eligible AUS findings are acceptable — borrowers who receive a Refer finding can still qualify
- Purchase transactions only — refinances are not eligible
- Both BPC and LPC structures available
- High Balance loan limits available in high-cost areas like Orange County, CA
Quick Comparison
| Feature | 100% DPA | 100% DPA Plus ★ | 101.5% DPA Deluxe |
|---|---|---|---|
| Borrower Cash to Close | $0 | $0 | $0 |
| Down Payment Covered | 3.5% | 3.5% | 3.5% |
| Closing Cost Assistance | No | No | 1.5% |
| 2nd Lien Rate | 0% | Rate + 2% | Varies |
| 2nd Lien Payment | None | 10-yr amortized | Varies |
| Min FICO | 620 | AUS approval | 620 |
| Manual UW FICO | 660 | N/A | 660 |
| Refer/Eligible OK | No | No | Yes |
| Income Limits | None | None | None |
| First-Time Buyer Req. | No | No | No |
| 2/1 Buydown | Yes | No | No |
| High Balance Limits | Yes | Yes | Yes |
★ Most popular program. All programs are FHA 30-Year Fixed, purchase only, primary residence 1–2 units.
Frequently Asked Questions
Do I need to be a first-time homebuyer?
No. All three DPA programs are available to repeat buyers as well as first-time homebuyers. There is no first-time buyer requirement.
Are there income limits?
No income limits apply to any of the three programs. Buyers at any income level may qualify as long as they meet FHA and program guidelines.
What credit score do I need?
Programs 1 and 3 require a minimum 620 FICO for AUS approval, or 660 for manual underwrite. Program 2 (DPA Plus) follows standard FHA AUS guidelines without a stated minimum, though a higher score typically results in better pricing.
What is the difference between Program 1 and Program 2?
Program 1 has a 0% rate on the second lien with no monthly payment — but the first lien rate is slightly higher. Program 2 (DPA Plus) has a second lien at first-lien-rate + 2%, amortized over 10 years, but the first lien rate is typically lower. The best choice depends on your credit score and how long you plan to keep the loan.
Can I use this to buy in Orange County, CA?
Yes. All programs support High Balance FHA loan limits, which apply in high-cost areas like Orange County and Los Angeles County. This means you can use these programs on higher-priced homes that exceed the standard conforming FHA limit.
What does "Refer/Eligible" mean for Program 3?
A "Refer/Eligible" AUS finding means the automated underwriting system referred the file to a human underwriter rather than issuing an automated approval. Program 3 (DPA Deluxe) accepts Refer/Eligible findings, which is unusual and beneficial for borrowers with credit challenges.
Do I pay anything at closing?
Programs 1 and 2 cover the 3.5% down payment. Program 3 covers the 3.5% down payment plus 1.5% toward closing costs. Depending on the transaction, you may still owe some closing costs not covered by the DPA — your loan officer will provide a full Loan Estimate showing all costs.
Can I use a 2/1 Buydown with these programs?
Yes — Program 1 supports a 2/1 Buydown, which temporarily reduces your interest rate in years 1 and 2 of the loan, lowering your initial monthly payment.
Program Guidelines Disclosure: Program guidelines are subject to change without notice and are provided for informational purposes only. All loans are subject to credit approval, income verification, and property eligibility. Not all borrowers will qualify. Options Home Loans LLC is a licensed mortgage broker — NMLS #2221613. Licensed in California and select states. Equal Housing Opportunity. This is not a commitment to lend.
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