Details About Down Payment Assistance

The loan will be a forgivable, 0% interest, deferred mortgage that has a term based on the amount obtained:

• $1,000 to $14,999 - 5 year term
• $15,000 to $30,000 - 10 year term

The program will run concurrent to the first mortgage.

The loan must only be repaid if during the term of the loan, the property:

• is sold
• ownership is transferred
• is refinanced
• is no long the Borrower's principal place of residence

The loan takes second position behind the first mortgage unless otherwise approved.

The program loan may be used to pay:

• Upfront costs of purchasing a residence, but not the entire cost
• Up to 50% of the required down payment
• Necessary costs incurred by the Borrower associated with the purchase, including: private lender origination fees, credit reports, fees for title evidence, fees for recording and filing of legal documents, attorney fees, and private appraisal fees.

Any remaining funds from the loan will be disbursed when the property title is transferred to the Borrower.  Any funds remaining after closing will be used towards the mortgage or a prepayment of the NSP loan.

The loans are considered a "Special Mortgage" and counseling must be received before any refinancing.