Down Payment Plus

Down Payment Plus is a matching program that provides down payment and closing cost assistance for income-eligible homebuyers. The assistance is provided in the form of a forgivable grant paid on behalf of the borrower at the time the borrower closes on mortgage financing with a participating financial institution, such as Better Banks. Grants are not restricted to first-time home buyers and can be used for a down payment, closing costs, or rehab costs. Grants are forgiven monthly over a five-year retention period.

The grant amount changes yearly, and requirements are announced each year in March. ​​Funds for this program are limited and are awarded on a first-come, first-served basis until the funds are depleted. For 2023, the maximum grant amount is the lesser of $10,000 or 25% of the first mortgage amount.

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. DPP grants are forgiven over five years (1/60th per full month). In the event of a property sale or removal of the Affordable Housing Program (AHP) Lien before the end of the 5-year retention period, the homebuyer(s) may be required to repay a pro rata of the grant.
• You must meet Better Banks' loan underwriting criteria.

Are You Eligible?

To find out if you’re eligible for Down Payment Plus, contact a Better Banks lender today.