If you receive assistance in conjunction with an FHA, VA, Rural Development, or Freddie Mac HFA Advantage loan, the assistance is in the form of a gift and you will not have to pay back any portion of the assistance.

If you receive assistance in conjunction with a Fannie Mae HFA Preferred loan, the assistance is in the form of a 7-year forgivable second mortgage.  The second mortgage loan principal will be forgiven 1/84th each month, beginning with the first full month after closing.  There is no forgiveness for partial months.  The outstanding principal of the second mortgage loan will be due and payable in any of the following instances that occur before the end of the 7-year forgiveness period:
<ul>
 	<li>The sale, disposition, or transfer of the property</li>
 	<li>The refinancing or payment in full of the first mortgage loan</li>
 	<li>Failure to occupy the property as principal residence for a period of more than sixty (60) days</li>
 	<li>Upon acceleration</li>
</ul>