Closing Cost Assistance (CCA) Program


A type of financial assistance designed to help individuals/families who meet certain eligibility requirements with their closing costs when purchasing a home. They are typically combined with the First Time Homebuyer or Low-Down Payment Assistance Loan Programs. Offered by government entities at the federal, state, or local levels. Additionally, nonprofit organizations may administer such programs to support affordable housing initiatives making homeownership more accessible. CCA programs may offer various types of assistance Grants - Funds provided do not need to be repaid. Loans - Some programs offer low-interest or zero-interest loans that need to be repaid over time. Forgivable Loans - Loans that are forgiven over time, often with certain conditions met (e.g., remaining in the home for a specified period).

Indications - this program is a good choice for:

  • For many individuals or families with limited financial resources, CCA programs can be a crucial steppingstone to achieving homeownership, which might otherwise be challenging.

What are the benefits?

  • Eligibility Criteria: Each CCA program has its own eligibility criteria, which may include income limits, asset limits, credit score requirements, ratio requirements and some programs are targeted at first-time homebuyers, while others may be available to a broader range of applicants.
  • Qualifying and Credit Standards: Products have credit and qualifying standards that must be met.
  • Property Restrictions: Some programs may have restrictions on the type or location of properties that qualify for assistance.
  • Occupancy: Low downpayment programs are typically only available for Primary Residence loans.

Typical Disqualifying Considerations?

  • Reduced Upfront Costs: CCA programs make homeownership more affordable by providing financial assistance for the closing costs, which is a significant upfront cost for homebuyers.
  • Financial Flexibility: By receiving assistance with the closing costs, homebuyers may have more financial flexibility to manage other homeownership-related expenses or to invest in home improvements.

Alternative Programs