Down Payment Plus is a matching program that provides down payment and closing cost assistance for income-eligible homebuyers. The assistance is provided as a forgivable grant paid on behalf of the borrower when the borrower closes on mortgage financing with a participating financial institution, such as Better Banks. Grants are not restricted to first-time homebuyers and can be used for a down payment, closing costs, or rehabilitation costs. Grants are forgiven monthly over a five-year retention period.
The grant amount changes each year, and requirements are announced in the spring. Funds for this program are limited and awarded on a first-come, first-served basis until they are depleted.
Eligibility
To be eligible, you must meet income and eligibility requirements, including:
Your household income may not exceed 80 percent of the area median income based on income guidelines published annually by the U.S. Department of Housing and Human Development (HUD).
You must contribute at least $1,000 toward the home purchase.
You must attend pre-purchase home-buyer education to ensure you understand the buying process and ownership responsibilities.
You must use the home as your primary residence.
You must sign a five-year retention agreement and agree to a lien on the property for the amount of the DPP grant.
You must meet Better Banks' loan underwriting criteria.
