Down Payment Assistance Types
Free, 2nd mortgage 0%, combined with 1st mortgage. 

Who offers?
Housing Authorities
CDFIs
Federal Home Loan Banks
Land Trusts

Some allow for multi-family properties. 
Target 1st time and 1st gen home buyers

Common Requirements
owner-occupants
minimum buyer investment: skin in the game. 
homebuyer education
must qualify for 1st mortgage. 

Most Bommone Homebuyer Assitance Programs: no 2 programs are exactly the same
1. DPA
most common homebuyer programs
grants: gifts dont have to be prepaid
repayable 2nd: forgivable after so many years. 
silent 2nds. 

eligible uses: DP, CC, prepaid expenses, buydowns, repairs. Helps shed costs to buy.

common myth: DP only for FTHB. 40% don't have FTHB requirements. HUD definition of FTHB 3yrs, exceptions.

Program Terms: grant, forgivable, deferred payments, affordablity period (must occupy 3-10 yrs) , 2nd lien, subordinate loan
Eligibility criteria: income limits, sales price limits, property location (each program offers assistance in a specific city/county. Some state specific, some national), FICO (most mirror 1st mortgage requirements), homeownership history (FHTB definition by HUD), military service, profession.
Advantages: Lower LTV, lower DTI, imprive mortgage insurance pricing, lower monthly payments, supplement cash to close, retain savings/liquidity, increase purchasing power. 
Homebuyer Education: often required, HUD-Certified, Online Options, Prepared Buyers, Successful Owners.   Result: default rates are lower...

2. Affordabel 1st mortgage. offered by state, housing finance agency
Features: reduced interest rate, expanded 1st mortgage options, reduced mortgage insurance costs, combine with DPA, 
Advantages: reduce buying costs, lower montly payments, increase purchasing power, expedite homeownership

3. Mortgage Credit Certificates (MCC). available from state, housing finance agency. Not all states offer. 
Offers fed inc tax credit $2000/yr... can use for every year uring life of mortgage
Benefits: reduce income tax liabilty, increase qualifying income, re-issue through refinance. 
How it works....

Additional/Unique benefits
Targeted Areas: no FHTB req, more DP$$$, higher income limits, higher sales price limits, specific locations. Zip codes, census tracts, counties
Targetd ProfessionsL Teachers/Educators, Law Enforcement, Firefighters, Healthcare workers, Municipal Employees.  Broad definition of terms. 
Militay and Veteran Benefits: no FTHB req, combnine with VA loans, increase equity out of the gate, cover closing costs. 

Identify DPA: Down Payment Connect


MASS HOUSING

Affordable mortgage loans with down payment assistance. 

$2500 closing cost credit for Veterans and Service Members. Members of the National Guard or Reserves, active-duty military, veteran or Gold Star Families may be eligible for a $2,500 closing cost credit. 

Down Payment Assistance 

2nd Mortgage 0% deferred due upon Sale, Refinance or Payoff of the 1st Mortgage. Must meet household income and Acquisition cost limits. 

2nd Mortgage 2% 15 yr fixed due upon Sale, Refinance or Payoff of the 1st Mortgage. Must meet Acquisition cost limits. 

FHA 

1st mortgage at market rate.

Down Payment Assistance: 2nd Mortgage 0%, forgivable after 36 consecutive on-time payments.