Deferred Payment Down Payment Assistance Loans
Deferred payment down payment assistance programs help buyers cover upfront costs by providing a second source of funds that does not require traditional monthly repayment. In many cases, repayment is deferred until a future event such as selling the home or refinancing.
This page also includes alternative assistance options that are commonly used in similar situations, especially when standard first-time buyer programs are not a fit. While these options may be structured differently, they are often used to solve the same problem. Reducing the cash needed to buy a home.
How Deferred Payment Assistance Works
Deferred payment programs provide funds toward your down payment, closing costs, or both. The assistance is structured as a loan (or loans) recorded against the property.
Unlike traditional loans, these programs typically:
Do not require monthly payments
Do not accrue interest or accrue interest at a very low rate
Are repaid only when you sell, refinance, or pay off the first mortgage
Because repayment is deferred, these programs can significantly reduce the amount of cash needed to buy a home while keeping monthly payments manageable.
Who Deferred Payment Programs Are Best For
Deferred payment assistance is often a good fit for buyers who:
Can afford a monthly mortgage payment but need help overcoming upfront down payment or closing cost barriers
Want to preserve savings for emergencies or repairs
Plan to live in the home for an extended period of time
Prefer assistance that does not affect monthly cash flow
May not meet the stricter underwriting requirements of Equity Sharing or large Grant programs
These programs are commonly used by both first time and repeat buyers, depending on the program guidelines and location.
Why Buyers Choose Deferred Payment Assistance
Buyers often use deferred payment programs to:
Buy sooner rather than waiting years to save
Reduce the amount of cash required at closing
Keep monthly payments lower than other assistance options
Preserve savings for unexpected expenses
Purchase in neighborhoods that would otherwise be out of reach
In high cost areas like Northern California, deferred payment assistance can be the difference between buying now and continuing to rent while prices rise
Important Things to Understand
While deferred payment programs can be powerful, there are tradeoffs to consider:
The assistance generally needs to be repaid when you sell or refinance
Closing costs can be higher than non-down payment assistance programs
Program rules vary by lender, loan type, and location
Understanding these details upfront is important so the program supports your long term plans rather than limiting them.
Example Deferred Payment Assistance Programs
Availability and guidelines change frequently. We confirm current program status before recommending any option.
CalHFA Down Payment Assistance Programs (MyHome, MyAccess, and ZIP)
CalHFA offers a combination of deferred payment assistance options that can be layered with a CalHFA first mortgage to help cover down payment and closing costs. These programs typically do not require monthly payments and are repaid when the home is sold, refinanced, or the first mortgage is paid off.
The most common options include MyHome, MyAccess, and the Zero Interest Program (ZIP), which are often used together depending on the buyer’s needs and eligibility.
Funding: Ongoing
Status: Available, subject to program guidelines
GSFA Platinum Down Payment Assistance Programs
GSFA Platinum offers down payment assistance options that can be paired with an eligible first mortgage to help buyers overcome upfront cash barriers when other programs are not a fit. While the assistance is not structured as a deferred payment loan, it is often used in similar situations to address down payment and closing cost needs.
GSFA Platinum programs are commonly used by buyers who do not meet first time homebuyer requirements, need to use a co-signer, or are purchasing multi unit properties. The structure and terms vary by option and loan type, and are reviewed carefully as part of the overall mortgage strategy.
Funding: Ongoing
Status: Available, subject to program guidelines
How Deferred Payment Assistance Compares to Other Options
Deferred payment assistance can be a strong solution, but it is not always the right one. Understanding how it compares to other types of assistance helps you make a more confident decision.
Deferred payment programs typically:
Reduce the cash needed to buy a home
Do not increase your monthly mortgage payment
Require repayment when you sell or refinance
In contrast, grant or forgivable assistance may never need to be repaid if certain conditions are met, while equity share programs involve sharing a portion of future appreciation instead of repaying a fixed amount.
The best option depends on your goals, how long you plan to own the home, and how important flexibility is to you in the future.
Important Things to Consider
Before choosing a deferred payment option, it is important to understand:
When the assistance must be repaid
Whether there are limits on refinancing
Underwriting requirements compared to non-down payment assistance options
These details vary by program and can affect future decisions, including refinancing or selling.
We review these factors carefully with every buyer so there are no surprises later.
How We Help
Down payment assistance programs can look simple on the surface but become confusing quickly when guidelines, timelines, and tradeoffs are involved.
When you work with us, we will:
Confirm which programs you may qualify for
Explain how each option works in plain language
Compare deferred payment assistance to other available options
Help you choose a strategy that fits both your budget and long term plans
Our role is not just to help you buy a home, but to help you make a decision you feel good about years from now.
Check Your Eligibility
If you are exploring down payment assistance and want to understand which options may fit your situation, the next step is a short eligibility check.
After you submit your information, a member of our team will review your responses and reach out to schedule a consultation call.
There is no cost and no obligation.
The right down payment strategy can make the difference between waiting and moving forward with confidence.