Yes, You Can Use DPA With Your VA Loan

In conjunction with Veterans Day and Military Family Appreciation Month, both observed in November, we’d like to express our profound gratitude for the men and women who have served our country and to highlight the benefits available to help them build stable, lasting futures. One of the most meaningful ways to honor that service is by supporting homeownership.

For many veterans, the VA loan is already a significant advantage. It offers no required down payment, no private mortgage insurance and flexible credit guidelines. However, even with those benefits, many Veterans can still benefit from down payment assistance (DPA) programs, which can help with closing costs, rate buydowns, pay a real estate agent, or provide a financial cushion for unexpected expenses. 

According to Down Payment Resource’s Q3 2025 Homeownership Program Index, there are a record 2,624 total assistance programs available nationwide. Of those, 49 programs — approximately 24% — are specifically designed for military veterans, representing a 9% increase from the previous quarter. These programs often offer additional support for those who have served, including higher income limits, waived first-time buyer requirements, or larger grant amounts.

What is DPA?

DPA can take the form of grants, forgivable loans or deferred second mortgages offered by state housing agencies, counties, cities or nonprofits. These funds can make a major difference for veterans who want to buy but need help covering upfront costs.

Researching available programs has never been easier. You can search for programs on our website by city, county or zip code to find programs for your area. Each listing outlines the income limits, purchase price caps, and eligibility requirements, including those specifically designed for veterans or active-duty service members.

When reviewing programs, pay close attention to the details and ask questions if you don’t understand a term or condition. Some grants never have to be repaid, while forgivable loans are erased after you stay in the home for a specific period. Deferred loans may need to be repaid when you sell or refinance. Most programs require that you live in the house as your primary residence.

Special benefits for our nation’s warriors

It’s important to note that 996 programs (38%) in our database are available to repeat buyers, while 1,628 (62%) support first-time homebuyers. HUD defines “first-time buyer” as someone who has not owned a principal residence in the past three years. However, some programs waive the first-time requirement entirely for veterans, so you may be eligible for more programs than you think.

Once you’ve found the right programs, the next step is finding a lender who understands both VA loans and DPA. Not every lender handles DPA funds the same way, and some may have additional rules that make combining them difficult. When you speak with lenders, ask if they have experience closing VA loans with assistance funds and whether they are approved to work with your state or local housing agency.

An experienced VA lender can help coordinate the loan process with the DPA provider, ensuring funds arrive on time and requirements are met. They can explain how the assistance will be reflected on your closing documents, how long the approval process will take, and what you will need to bring to closing. If you’re buying a condo, manufactured home, or multiunit property, confirm that the lender has experience with those property types under VA rules.

Combining VA financing with down payment assistance may require more planning, but the potential savings are well worth it. The right DPA program can reduce your upfront costs, lower your monthly payment, and make homeownership more accessible — especially in today’s competitive market.

This month, as we honor those who have served, we should ensure their benefits can be fully utilized. Homeownership is one of the strongest foundations for financial stability and community connection. With a VA loan and DPA, more veterans can turn that opportunity into reality. For more on VA loan eligibility, visit the VA website.

Down Payment Resource builds tools that help mortgage lenders, real estate agents, multiple listing services and consumer listing sites build relationships with homebuyers by connecting them with the homebuyer assistance they need.

To learn how Down Payment Resource can help you support homebuyers, contact us.