Down Payment Assistance
Down payment assistance comes in the form of grants, loans and other programs. Eligibility is determined by your household income and credit history, and it varies by state and program. How much money you’re awarded differs depending on the program. Once you apply for assistance, by submitting an online application, we then verify if you meet the guidelines. You may also be required to complete an online home buyers education course on the mortgage process and maintaining finances.
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WHO IS CONSIDERED A FIRST- TIME HOME BUYER?
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In order to be considered a first-time homebuyer, you just can not have had any homeownership interest in the past 3 years.
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2/1 Buydowns Now Available for DPA Program!
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FHA DPA, Purchase Only
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2/1 Buydown Option Available (24 month term)
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620 Min FICO - requires DU Approve/Eligible
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No Maximum Income Restrictions
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Manual Underwrite Available, Min FICO 660
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Not available with buydown option
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Follows FHA guidelines
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No First Time Home Buyer Requirement
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Non-occupied Co-borrowers allowed per FHA guides
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DTI - Follow AUS - Approved/Eligible
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One borrower must complete HUD approved counseling
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96.5% Max LTV with 3.5% DPA (100% CLTV)
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2nd Lien is a zero percent (0.00%) note rate, fully amortized over 30 years, with a forgivable option
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Conforming and High Balance Loan Limits Available
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Forgivable Second Loan
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Forgivable mortgage loans are second mortgages you won’t have to pay back as long as you stay in a home for a set number of years.
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These loans come with an interest rate of 0%. Participating lenders will forgive them – meaning that owners won’t have to pay them back – after a certain number of years. Often, lenders will forgive the loan after 5 years, but they do have the option of making the forgiveness period as long as 15 or 20 years.
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You’ll have to repay these loans if you move before the forgiveness period ends. For instance, if your lender says they’ll forgive your loan after 5 years but you move, refinance your mortgage loan or sell your home in 4 years, you’ll have to pay back all or a portion of your forgivable loan.
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Silent Second Loan
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You might also qualify for a second mortgage with a deferred payment, also known as a "silent second". You don’t have to repay these second loans until you move, sell, refinance your first mortgage or pay down your first loan.
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There is 0% interest on them and 0 payments due until time of refinance or sale of the home.
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Deferred-payment loans are never forgiven, so you’ll have to repay them if you ever leave or refinance your home. You’ll usually cover the repayment of the loan through the proceeds from the sale of your residence.
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Low Interest Loans
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It sometimes makes more sense for some people to take out a second mortgage loan at the same time their first mortgage is finalized. They can use the funds from this loan to cover their down payment. They'll have to repay this loan in installments, usually when they make your monthly payments on their first loan. This means they'll be making two mortgage payments each month.
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The goal of these loans, over the silent second or forgivable, is to get a lower interest rate.