Does the borrower have to pay back the down payment assistance?

Government Options 1A & 1B: No, the borrower is not required to pay back the gift upon sale or refinance; it is a true gift to the borrower.

Government Option 2: This is a hybrid option, offering 2.5% assistance as a true gift that does not have to be repaid and 2.5% as an amortizing 2nd The amortizing 2nd mortgage portion must be paid back at a fixed interest rate of 5.0% over a 10 year term.

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