Advice on DPA (down payment assistance ) please help me close this deal.

I am new,but i have done a lot of research and i act on the things i know. I am slightly confuse on how to use DOWN PAYMENT ASSISTANCE for a deal i’m working on right now,seller is very motivated,willing to hold a small 15% so far,will try to get a higher second. I will give some numbers so you guys can clearly help me,please. Purchase price 3.1 MIL, amount needed from DPA for down payment is 465k (15%),DPA fees 7%,plus $2,500 extra,total DPA fees $35,050,closing cost on the safe side 310k (10%). This is where i’m confused,what is the amount of credit i need to ask seller for in order to create a no money down deal,which seller is ok with
Is it a total amount of $810,050 or just the amount of DPA fees and closing costs which is $335,050.Because DPA gets their money back which was in escrow just for proof. Seller really wants to make this work,i just want to be right. Property is cash flowing $5,783/month.Please help me.I’ve had bad experiences with private partners taking deals behind my back,so i am scared to try and bring in a partner for down payment.

This may not be the help you want to hear, but the words “new, 3.1 mil, and no money down” shouldn’t even be in the same paragraph. These are huge numbers and a huge risk if you truly are new to REI.


 I am not sure how you go about figuring this is a deal? How do you go about getting a new mortgage if the DPA gets there money back and your new 1st TD lender believes your putting 15% down. 

How come the first thing that comes to my mind is - Fraud?


No comment…Thanks for trying to help. I’m not new to investing,3.1MIL is just a number.

Hi Frantz,

            I just went back and read and looked at your 16 postings, all were trying to do is support you in making the right decisions and give you our insight, were not here to judge, however reading your postings makes me think your new to real estate and need some help?

When someone talks about rehabing, wholesaling and commercial properties it kind of indicates your not sure exactly what you want to do, and that’s ok!
It’s not that we want to take the wind out of your sails, we want to help you avoid some of the mistakes we made, save you from taking a lot of loss’s and keep you out of litigation or breaking the law.

We as fellow investors want you to be successful, we want you to thrive and prosper, we want you to have family security and be able to become financially secure, but we want you to do it safely, and reduce your risk, and increase your reward!

Maybe in some cases your misunderstood, if so set us straight, but any way you cut it $3.1m is a lot of money!
Give more details and more information, let us know what you know so we can best answer your questions? Don’t be afraid to write more than 2 paragraphs?

$3.1M is only a number to someone who has nothing to lose, who does not care whether they ruin there credit, go bankrupt or go to jail? Who does not have a family to be responsible to or someone expecting a roof over there head or a hot meal at least once a day? $3.1m is not a number, in fact over 6 Billion people on this planet dream of $3.1m, most of the investors on this forum wish they had $3.1m, and probable less than 10% of us have any experience working with properties over $3.1m, it is hardly “Just a Number”!

I worked hard to earn my first $3.1m!

If you need some real estate help Frantz send me a PM and ask me to call you and help you out, just give me a number to reach you?

Good luck,


Suggestion: go to the banker that you’ve arranged the loan with and ask him what you need in order to get the mortgage that you’ve pre-qualified for.

Each bank wants something different.

Then let us know what bank you’ve found that will loan over 3 mill commercial loan to someone without a penny of skin in the game, 'cause I bet I could find something to spend 3 mill on if I didn’t have to come up with any cash for down payment.

What you are calling DPA really looks like raising the sales price by 15% to cover the down payment. Plus the DPA costs?

So your 15% DPA is $465,000 plus your 7% DPA fees of $217,000 plus $2500 for a total of $684,500.

Is that $684,500 already included in the $3.1 M? If so your true sales price is $2,415,500 correct? After closing you will have a note for $2,239,750 (your DPA reduces your loan amount buy $465,00 buit your closing costs are still rolled into the note) plus a seller second of $465,000 (15%)? That is a whole lot of risk for 5k per month. Even if the seller second is forgiven (which does constitiute fraud) you are still on the hook for a huge payment every month. This property better be worth a whole lot more than $3.1 M.

Is $5,783 a month net income or gross income? If it’s gross you better run and don’t look back. Post a 1yr cash flow please.

If you don’t have cash to buy and you have no experience RUN. Start with a 2-4 unit residential property or a single family.

Learn small grow big. Grow your cash. Cash is king!