How does DPA work?

The assistance is provided in three forms: a gift that does not have to be repaid, a 2nd mortgage loan which will be paid back monthly over ten years, or a forgivable 2nd mortgage which does not have to be repaid if you live in the home for seven years. The amount of down payment assistance received is based on a percentage of the total first mortgage loan amount. We can provide up to 5% assistance depending on the first mortgage loan product recommended by your lender.

Your lender can help determine which option is best for you.

See below for example:

Loan Type is: FHA (Government Product)
DPA Type is: Gift
Loan Type is: Fannie Mae HFA Preferred (Conventional Product)
DPA Type is: Forgivable 2nd Mortgage
Loan Type is: Freddie Mac HFA Advantage (Conventional Product)
DPA Type is: Amortizing 2nd Mortgage
Loan Amount is: $100,000Loan Amount is: $100,000Loan Amount is: $100,000
5% Assistance: $5,000 Gift5% Assistance: $5,000 Forgivable 2nd Mortgage5% Assistance: $5,000 Amortizing 2nd Mortgage
No repayment or liens for the $5,0002nd mortgage forgiven 1/84th a month over 7 years - no payments unless you sell or refinance within the 7 years.2nd mortgage paid back monthly over 10 years at an interest rate of 5%

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