A Down Payment Assistance (DPA) program is a financial tool designed to make homeownership more attainable for prospective homebuyers. It is a secondary loan that covers some or all of the down payment and closing costs that come with buying a home.
Paddio has partnered with Lakeview National and Essex Mortgage to make a few Down Payment Assistance options available to our homebuyers. Talk with your Loan Team about whether Down Payment Assistance is right for your situation.
Why choose a DPA program?
The initial down payment and closing costs associated with a mortgage are often the biggest barrier to buying a home. A Down Payment Assistance program can help bridge that gap, spreading the costs associated with a mortgage out over several years rather than needing to provide cash up front. For many qualifying homebuyers, this could be the key to making a new home attainable.
Lakeview National DPA (for Conventional Loans):
Lakeview National's DPA program offers a secondary loan to eligible borrowers with a conventional mortgage loan. Our goal is to provide the support you need to turn the key to your new home with confidence and ease.
This is an interest only fixed rate 2nd lien with a 30 year term. The remaining balance of the 2nd lien is due at the end of the 30 year term or upon the sale, refinance, or transfer of the property, or early payoff of the 1st lien mortgage.
This loan can be utilized to cover various expenses associated with homeownership, including down payment, closing costs, or a combination of both. There are more eligibility restrictions for sources of down payment funds, so this DPA will be used towards the down payment first, then any remaining DPA funds will be applied to closing costs.
Essex Mortgage DPA (for FHA Loans):
Essex's DPA program is a trusted option for many borrowers with FHA loans and can be used to cover the down payment, closing costs, or a combination of both. Similar to Lakeview National, Essex's program offers assistance tailored to your needs, helping you navigate the path to homeownership with greater flexibility and peace of mind.
This is a fixed rate lien that's amortized over 10 years. There are no pre-payment penalties, but the remaining balance is due if the borrower sells the home, refinances, etc.; just as with any other 2nd lien.
Ready to get started?
Talk with your Paddio loan team today about your options and whether a Down Payment Assistance program is right for you.
Lakeview National Down Payment Assistance: Down Payment Assistance loans are funded by Springboard, and FAHE (Federation of Appalachian Housing Enterprises). Offer valid on primary residence, Conventional loan products, including but not limited to HomeReady® and Home Possible®. Maximum loan amount determined by current FHFA conforming loan limit per county. Maximum Down Payment Assistance amount is 4% of the lesser of Sales Price, or Appraised Value. Offer valid only for home buyers when qualifying income is less than or equal to 140% of the Fannie Mae/Freddie Mac Area Median Income. FICO 660 and up. Springboard funding available in the following states: AK, AR, AZ (other than Phoenix/Maricopa County which is not eligible) CO, CT, GA, ID, KS, NC ND, NH, NM, OK, OR, PA, SD, UT and WY. FAHE funding available in the following states: AL, HI, IL (other than Cook County which is not eligible), KY, MA, ME, MI, MN, MO, MS, MT, TN, VA, & WI. All other states are ineligible. Not available with any other discounts, promotions, or temporary buydowns and cannot be retroactively applied to previously closed loans or loans that have a locked rate. This is not a commitment to lend. Paddio reserves the right to cancel/modify this offer at any time. Additional restrictions/conditions may apply.
Essex Mortgage Down Payment Assistance: Offer valid on primary residence, FHA Purchase loan products only. Maximum loan amount of $726,200. Maximum Down Payment Assistance amount is 3.5% of the lesser of Sales Price, or Appraised Value. FICO 660 and up. Offer not available in New York or Washington. Not available with any other discounts, promotions, or temporary buydowns and cannot be retroactively applied to previously closed loans or loans that have a locked rate. This is not a commitment to lend. Paddio reserves the right to cancel/modify this offer at any time. Additional restrictions/conditions may apply.
