Down Payment Assistance Programs Available Through Ruoff Mortgage

Down Payment Assistance Programs Available Through Ruoff Mortgage

One of the biggest reasons people delay buying a home isn’t their credit score. It’s the down payment. The good news? There are Down Payment Assistance (DPA) programs available through Ruoff Mortgage that may help qualified buyers purchase a home sooner — with less money out of pocket. Let’s break this down in simple terms.

What Is Down Payment Assistance?

Down Payment Assistance (DPA) is funding that helps cover:

• Your down payment

• Closing costs

• Or sometimes both

Depending on the program, assistance may come in the form of:

✅ A grant (does not need to be repaid)

✅ A forgivable second mortgage

✅ A deferred-payment second mortgage

✅ A low-interest repayable second mortgage The structure depends on the specific program and eligibility.

State Bond Programs (Housing Finance Authority Programs)

Ruoff Mortgage participates in State Bond / Housing Finance Authority (HFA) programs, including:

• IHCDA (Indiana)

• OHFA (Ohio)

• MSHDA (Michigan)

• KHC / Kentucky Housing

These programs are designed to help:

• First-time homebuyers (in many cases)

• Moderate-income households

• Buyers who meet program income limits

These programs often provide:

• Down payment assistance

• Mortgage Credit Certificates (MCC)

• Competitive fixed-rate options

📌 Important: State Bond loans must be Approve/Eligible through automated underwriting— manual underwrites are not permitted under Ruoff overlays[7]. Eligibility follows the most restrictive of:

• Agency guidelines

• State Bond requirements

• Ruoff lender overlays [7].

Can Down Payment Assistance Be Used with FHA, Conventional, VA, or USDA?

In many cases — yes.

FHA Loans

FHA allows secondary financing from:

• Governmental entities

• HUD-approved nonprofits

As long as:

• The second lien is disclosed

• No cash back is received

• The second lien does not include a balloon payment within 10 years

• Payments are included in qualifying ratios [15]

Conventional Loans

Fannie Mae allows:

• Grants

• Employer assistance

• Community Seconds

• Deferred or forgivable second mortgages

When guidelines for subordinate financing are met[14].

VA Loans

VA allows second mortgages for:

• Down payment

• Closing costs

As long as the borrower qualifies for the second lien and it is subordinate to the VA loan[13].

USDA Loans

USDA permits junior liens for down payment or closing cost assistance if:

• The lien does not interfere with repayment

• Total liens do not exceed property value (with soft-second exceptions) [27]

.

What Does This Mean for You?

It means: You may not need to wait years to save a large down payment. But — and this is important — not all assistance programs are the same. Some are:

• Income restricted

• First-time buyer only

• Limited to certain counties

• Structured as repayable seconds

• Available only while funding lasts

This is where strategy matters.

Is Down Payment Assistance Right for You?

It depends on:

• Your credit profile

• Your income

• Your long-term goals

• Your timeline in the home

• Whether preserving cash is more valuable than a slightly higher rate

For some buyers, DPA is a smart wealth-building move. For others, using personal funds may make more sense. The key is running the numbers.

Let’s Build a Smart Strategy

If you're considering buying a home and are concerned about upfront costs, let’s explore what Down Payment Assistance programs through Ruoff Mortgage may be available to you. Every buyer’s situation is different. The right plan is built — not guessed.

Dan Smith

Senior Loan Officer

Ruoff Mortgage

NMLS 2784335