Home Purchase Assistance Program (HPAP) Fact Sheet Page 2
Qualified applicants can receive financial assistance for downpayment and closing costs to purchase single-family houses, condominiums or cooperative units.
How much assistance is available?
Effective June 30, 2006 and until further notice, the total amount of financial assistance for downpayment provided to very low-, low-, and moderate-income eligible households shall not exceed $70,000 based upon household income, need, the availability of funds, and prevailing trends in the real estate market. Closing cost assistance is provided separately, and will be calculated for eligible households to be 4% of the home purchase price or $7,000, whichever is less.
How is the loan repaid?
Payment on loans made to any income-eligible household under this program are deferred for the first five years. Monthly principal-only payments begin at the start of the sixth year of the loan, amortized over a 40-year period.
The entire amount of the loan is immediately due and payable if:
- the borrower transfers the property,
- the property is refinanced (unless the refinance meets certain conditions), or
- the property ceases to be the borrower’s principal place of residence.
How can I apply?
To apply for HPAP assistance, please contact one of the following organizations:
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