Depending on the program, a borrower can qualify for 2.5%, 3.5%, or 5% down payment assistance, based off the lesser of the sales price or appraised value of the home being purchased and depending on the type of loan financing. The assistance comes in the form of a second mortgage but carries no interest and no payments. The down payment assistance must be repaid
- at loan maturity
- If the home is sold
- If the home is refinanced; or
- when the home is no longer used as an owner-occupied primary residence