A borrower can qualify for 3-4% down payment assistance, depending on the type of loan financing, based off of the sales price of the home being purchased.  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 in the first two years of owning the home.  After two years, the down payment assistance is forgiven with IHCDA and turns into equity in your home.