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: $100,000||Loan Amount is: $100,000||Loan Amount is: $100,000|
|5% Assistance: $5,000 Gift||5% Assistance: $5,000 Forgivable 2nd Mortgage||5% Assistance: $5,000 Amortizing 2nd Mortgage|
|No repayment or liens for the $5,000||2nd 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%|