The objective of our DPA is to assist as many home buyers as possible to achieve the dream of home ownership. Our guidelines asre designed to allow as many credit-worthy borrowers as possible the ability to purchase a home. Below are some higlights of the DPA.
DOWN PAYMENT ASSISTANCE PROGRAM
| DPA | Rate Advantage | |
| Description of Assistance | Down payment assistance in the form of a Gift, Soft/Forgivable Secondary Financing, or Repayable Secordary Financing | Down payment assistance in the form of 10 Year Repayable Secondary Financing at an 8% fixed rate only. |
| Mortgage Loan Types and Terms | 30 Year Fixed Rate term with full amortization only: 1. FHAk 203(b) 2. FHA 203 (b)(2) 3. FHA 234(c) | 30 Year Fixed rate term with full amortization only: 1. FHA 203(b) 2. FHA 203(b)(2) 3. FHA 234(c |
| Minimum Borrower Investment | $0.00 | $0.00 |
| Down Payment Assistance | - 3.5% rounded to the nearest dollar - Gifts available to borrower with qualifying income at or below 115% of area median income per lender contract* - Soft/Forgivable Secondary Financing available to borrower with qualifying income <=115% of area median income per lender contract* - Fully-amortized second mortgages with a term of 10 or 30 years for borrowers with qualifying income >115% of area median income* *When loan includes a nonoccupant co-borrower, qualifying income of only the occupying borrower(s) is used to determine program qualifications under AMI limits. - Lenders fund the down payment assistance at closing and will be reimbursed by CBCMA upon purchase of the FHA insured first mortgage under the terms of a Funding Obligation Letter. | - 3.5% rounded up to the nearest dollar - Fully-amortized second mortgages with a term of 10 years for borrowers with HOUSEHOLD income <115% of area median income. - Lenders fund the down payment assistance at closing and will be reimbursed by CBCMA upon purchase of the FHA insured first mortgage under the terms of a Funding Obligation Letter |
| Non Occupant Coborrowers | Allowed | Not Allowed |
| Cash Back to Borrower | Borrower may receive a refund of documented earnest money deposit and other documented, paid third-party costs only | Borrower may receive a refund of documented earnest money deposit and other documented, paid thirdparty costs only |
| Borrower Eligibility | One of the borrowers must occupy the property as their primary residence. Nonoccupant co-borrowers/cosigners are permissible. All other FHA guidelines apply | All borrowers must occupy the property as their primary residence All other FHA guidelines apply |
| Minimum Credit Score | 620 All borrowers must have at least one credit score. Soft pull credit report required within 10 days of Note date. | 640 All borrowers must have at least one credit score. Soft pull credit report required within 10 days of Note date. |