On the DPR (state) Program Directory:

• Type lets you know if the DPA is a 2^nd mortgage*, Grant**, Mortgage Credit Certificate (MCC) or Combined Assistance***.

* 2^nd mortgage and Grant are what MLO’s can commonly add to 1^st mortgages you are already originating. **A Grant is treated like a gift. ***Lender provides and underwrites both 1^st and 2^nd DPA mortgage.

• Max Asst shows max dollar or percentage amount client can receive.
• Changed (days ago) alerts you how long ago a recent update to a program occurred.
• Funding Status shows if a program is Active, Suspended or Inactive.
• The Approved column allows an MLO to select the programs they want visible to prospective clients.

What Each DPA Program Page Contains

Within each DPA program page are 10 headings of “need to know” information and all DPA pages are in the same order. 

Here are a few “need to know” details.

Program Overview:

• Participating Lenders commonly provide direction to get approved for DPA.
• Eligible Use of Funds can let you know if rehab/repairs may be an acceptable use of funds.
• Program Overview has added Wholesale programs available to independent mortgage loan originators/brokers on Eligible Channels!

Program Terms:

• Approved 1^st mortgage types show your 1^st mortgage type that DPA program can be subordinated to.
• On all programs, check under Program Terms for deferral, forgiveness and criteria that must be met for forgiveness.

Borrower Eligibility:

the most important heading for MLO’s and HUD housing counselors! Here’s where you find:

• Maximum (combined) Qualifying Ratios
• minimum Credit Scores
• if Home Buyer Education is required and where clients can go to get needed education. HUD housing counseling agencies may even want to use this knowledge to investigate more avenues of housing education to facilitate.
• Income limits apply?: yes or no, and if income is based on HUD or GSE (Fannie Mae/Freddie Mac) income levels.
• Maximum annual household Income by household size: many DPA program are based on HUD Area Median Income (AMI) levels that are derived from the total household family size and the total income of all household members over the age of 18.
• HUD income levels ARE NOT the same as Fannie Mae and Freddie Mac income levels! Which income to use (HUD or GSE/Fannie Mae or Freddie Mac) is noted in Income limits apply?, and income max is commonly listed in Maximum annual household Income by household size. 
• This difference can be seen in DPA programs that are specific to Fannie Mae and Freddie Mac. Income limits apply? May state Income limits from FHFA/GSE 2022 80% AMI guidelines or tell you to check with lender.

Some DPA programs have a maximum dollar amount of assets (commonly $20,000) that a client can have to be eligible for DPA. This will be found under Borrower Eligibility in Maximum Assets Allowed if this field is shown. Check with DPA programs for this detail.

Property Eligibility:

• Eligible property types shows if manufactured homes are allowed, which can also be found using filters: Property Eligibility>Eligible Property Types>Manufactured Homes.
• Maximum #units allowed shows up to 4 if multi-family allowed. Also use filter: Property Eligibility, select Yes under multi-family.

Yes, there is DPA listed for… Use Filters! (Also, click on small i in blue circle for more information.)

• For licensed mortgage loan originators/brokers to specifically find Wholesale lenders, click on Product/Program Overview>Eligible Channels and select Wholesale from Retail, Wholesale, and Correspondent in the dropdown.
• No income levels! Click on Income Limits> Limits Apply?> No: Only show programs that do not have limits on borrower income.
• Multi-family properties! Click on Property Eligibility>Multi-Family>Yes: Only show programs available for multi-family (2-4 unit) properties.
• Deferred and Forgivable DPA: Click on Product/Program Terms and pick yes or no under the Deferred Payments and Forgivable tabs.
• First-time homebuyer (FTHB) or not, is found under Borrower Eligibility.

The information provided in this article is tip of the iceberg!

Once you open Down Payment Connect, you will use it daily! MLO’s are getting emails about new DPA programs that lenders are providing more often, and DownPaymentResource.com continues to add these programs and improve originator, Realtor, HUD housing counselor, and client awareness of all down payment assistance nationally. MLO’s, to subscribe and get access to all things DPA to assist more clients, you need Down Payment Connect! 

Stay tuned.