The FHA DPA (Down Payment Assistance) program offers up to 100% CLTV for purchase transactions only on primary 1-2 unit properties. A minimum FICO score of 600 is required, and borrower-paid compensation is the only option. The DPA second can only be used in conjunction with our first lien.
2 Options for DPA second
Repayable Option
- The 10-year fully amortizing option has a rate that is 2.0% higher than the first mortgage lien.
- The payment is included in the DTI.
Forgivable Option
- No payment is required, and there is no interest rate.
- The borrower must remain in the subject property for 10 years from the Note Date.
- Refinancing, selling, foreclosing, transferring the property, etc., will trigger repayment of the balance.
Other guidelines to keep in mind
- Manual underwriting is not permitted
- Single-wide manufactured homes are ineligible
- Leasehold land is allowed
- ITIN borrowers are not allowed
- Non-permanent resident borrowers are not allowed
- Unpaid federal debt on a payment plan has a maximum DTI of 45%
We do our best to make sure that our borrowers have options for purchasing a home with no money down. Contact our office and we’ll connect you to a loan specialist who knows how to qualify borrowers for a zero down payment mortgage.
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