Depending on the program, a borrower can qualify for 3.5% or 6% 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 funds must be repaid in full if the borrower chooses to refinance or sell within the forgiveness period.  After the forgiveness period, the down payment assistance is forgiven with IHCDA and turns into equity in your home.