The Hope Brings You Home Down Payment Assistance (DPA) Program is being implemented by the Nevada Affordable Assistance Corporation and the Nevada Housing Division. This program will work alongside the Mortgage Origination Agreement.
Borrowers under the DPA Program will receive a 30-year, fixed rate, fully amortizing first-lien mortgage loan, and a DPA second mortgage equal to 10 percent of the subject property, at a maximum of $20,000. The funds from the DPA second mortgage can be used for a down payment, closing costs, prepaids, and mortgage insurance premiums.
The funding for the DPA Second Mortgage Program is provided by the U.S. Department of the Treasury through the Troubled Asset Relief Program; Hardest-Hit Fund. The DPA Program has $36,000,000 commitment from the Nevada Affordable Housing Assistance Corporation Hardest-Hit fund allocation. These funds are only available on a first-come, first-serve basis. The DPA Program cab be combined or layered with the Mortgage Tax Credit Program.
The DPA Second Mortgage is a lien against the subject property with the following components: it is a deferred loan that is 100 percent forgiven after three years, 1/36 of the loan amount will be forgiven each month, it has a zero percent interest rate, and no monthly payment.
The Nevada Affordable Housing Assistance Corporation (NAHAC) DPA funds are provided by the lender at closing and reimbursed to the lender upon purchase by the Master Servicer.
There are a variety of requirements that the borrower must meet to be eligible for the DPA Program, however, once the loan is approved the DPA Second Mortgage is automatically reserved.
Written by Jeanette Smith
Hope Brings You Home Guidelines: pdf
Image Courtesy of Granit Architects’ Flickr Page – Creative Commons License