The down payment assistance is based on a percentage of the total first mortgage loan amount. The amount of assistance is 0%, 3.5%, 4.0%, or 5.0% of total first mortgage loan amount.  The type and percentage of the assistance provided depends upon the first mortgage loan type.

The assistance provided with a Fannie Mae HFA Preferred conventional loan is in the form of a 7-year forgivable second mortgage, which forgives 1/84th each full month the borrower lives in the property after the loan closes.  The borrower can receive 0%, 3.5%, 4.0%, or 5.0% of the total first mortgage loan amount in assistance funds in conjunction with the Fannie Mae HFA Preferred.

The assistance provided with FHA, VA, Rural Development, and Freddie Mac HFA Advantage loan is in the form of a gift that does not have to be repaid.  The borrower can receive 3.5% or 4.0% of the total first mortgage loan amount in assistance funds with FHA, VA, and Rural Development, or 0%, 3.5%, or 4.0% with the Freddie Mac HFA Advantage loan.
<p style="text-align: left;">The funds may be used to fund up to 100% of the borrower’s cash requirement to close, including the down payment, closing costs, pre-paid items, single or split MI fees and other related mortgage loan fees and expenses.  No portion of the assistance funds can be paid to the borrower unless the borrower is being reimbursed for his/her earnest money deposit and pre-paid expenses to the extent the minimum borrower contribution has been satisfied.</p>