Nearly every DPA income calculation uses HUD Income Limits found at HUD.gov. Go here , pick the state and then select a county and you will  be directed to an Income Limits Summary that provides Extremely  Low (30%), Very Low (50%), and Low Income (80%)Limits that change based on # of Persons in Family. Median Family Income is 100%. But check your specific program critieria which can vary.

This is not the same income that you will see on Fannie Mae and Freddie Mac Area Median Income  Lookup Tools. That income is used per person and is critieria for Affordable conventional mortgages that can allow a 3% down payment and lower PMI. 

State Bond  and Hometown Heroes income levels are also calculated differently. Check guidelines for family size and max. income.

In the last few years, wholesalers have begun to step up their game with DPA product offerings to independent MLOs. Some wholesalers have their own 1st and 2nd DPA mortgage programs where both are underwritten at one lender. Other wholesalers allow an outside 2nd mortgage to their FHA and/or conventional Fannie Mae or Freddie Mac mortgages per allowable CLTV guidelines. In 2023, the Florida Housing Finance Corp. (Fl only) made state Hometown Heroes, Bond and TBA programs available to independent loan originators through wholesale lenders. Recently, a growing number of wholesalers have added propritary DPA programs that offer no maximum income level,  no FTHB requirement and co-borrowers are allowed.

Why are these multiple channels of  DPA important? Wholesaler business is not dependent on state funding, so when funds for DPA run out from the state, wholesalers can still provide independent loan originators with DPA programs. 

Some DPA programs require that the MLO and also the realtor must take a class to be certified to provide specific DPA programs for mortgage clients. Check with each DPA provider.

Some DPA providers require that the DPA client meets with the program admin. upfront to make application and get approval 1st. Others require submission through a portal when the 1st mortgage is being submitted or is already approved. Check with the DPA provider to find out these details upfront as this can add to the timeframe of your contract.

The answer is usually No, so make sure to thoroughly check guidelines for any differences that will need to be abided by. Here's a few things that can be different: 

• the 2nd mortgage payment may be deferred. If this is for at least 5 yrs, the 2nd mtg payment does not need to be counted in ratios. Sometimes higher income levels will not  allow deferrment of 2nd mtg. payment. 
• Max. front and back ratios may differ. Some programs go by 1st mortgage guides or abide by AUS findings.
• Clients may have too much liquid assets for program. Varies from program to program.

Always thoroughly check 2nd mortgage guidelines.

In the past, DPA needed to be included in the refinance of the 1st mortgage. However, in today's higher rate environment, more and more DPA programs are allowing for a resubordination of the DPA 2nd to a refinanced  1st mortgage. There are usually specific restrictions on this, so check DPA guidelines for each program.

If you are using Down Payment Connect, this direction can be found under Program Terms in Repayment Notes.

No. DPA and forgiveness programs are for owner-occupied properties. The 2nd DPA mortgage will need to be paid off.