Down Payment Assistance for Any Homebuyers
Get up to $25,000 toward your down payment through a 0% interest, deferred-payment loan — you repay it when you sell or refinance, not month to month.
- $25,000Maximum toward your down payment
- 0%Interest — repaid when you sell or refinance
- ≤120% AMIHousehold income limit
- $25Application fee
Eligibility
Income limits apply (household income at or below 120% AMI), and first-time homebuyers who complete a homeownership counseling course qualify. First-generation homebuyers receive priority.
Eligible Property Types
Single-family homes
Townhomes, condos, duplexes (single-unit owner occupied)
Manufactured or modular homes on permanent foundations
Homes in Community Land Trusts (CLTs)
Use of Funds
Down payment assistance
Principal reduction / mortgage write-down
Closing costs (as needed)
May be layered with other DPA as a silent second.
Loan Amount & Terms
Up to $25,000 at 0% interest, with a $25 application fee.
Deferred Payment
Due upon sale or transfer of the property, or maturity date stated in the note.
Primary Residence
The property must remain the borrower’s primary residence throughout the applicable affordability period.
Buyer Contribution
Buyer must contribute a total of 1% of purchase price or $1,000.
No Cash Back
No cash back to the borrower (except standard prorations or escrow adjustments).
Total Indebtedness
Total indebtedness against the property cannot exceed one-hundred percent (100%) of its value.
Other Fees
Recording Fee and Title Closing Costs.
Borrower Requirements
Must complete ECLT’s required application and documentation package
Front-end ratio up to ≤ 35%, back-end ratio ≤ 43%
Minimum of $2,000 in post closing reserves
Borrowers must spend down all liquid assets above $50,000.
Borrower income verification must adhere to HUD’s Section 8 Part 5 definition of Income.
What counts as a liquid asset?
For purposes of this requirement, liquid assets are those readily convertible to cash (including but not limited to savings or checking accounts, certificates of deposit, stocks and bonds, etc.). Liquid assets, however, exclude life insurance policies and any savings held in a tax-preferred retirement account (e.g. pension, 401(k), IRA, etc.), college savings plan (e.g. 529 account), or health savings account recognized by the Internal Revenue Service.
Application Process Overview
All household members must be accounted for in the ECLT DPA application. This includes a listing of all household members, and all sources of income and asset information. Those on the title but not living in the household do not need to be included.
Apply
Borrower submits ECLT DPA Application once under contract.
Lender documents
Lender submits the required documents for ECLT review of income, assets, and eligibility.
ECLT review
ECLT requires minimum 15 business days for DPA loan review.
Loan commitment
Loan commitment typically issued within 48 hours.
Closing instructions
ECLT issues closing instructions, funding, and final documents directly to title.
Funding
Funds wired 24 hours before closing.
Income and Asset Verification
Anticipating Income
Annual income is the gross amount of income that is anticipated to be received by all members of the household, even if they are not related to each other, during the twelve months following the effective date of determination. Income includes:
Wages for all adults >18 years of age (including recurring seasonal jobs)
Earnings on all assets
Public benefits
Alimony
Child support
Pensions and routine payments from retirement accounts
Benefits and unearned income of dependents under the age of 18.
To determine a household’s income, use a “snapshot” of the household’s current circumstance to project future income. In general, the lender should assume that today’s circumstances will continue for the next 12 months, unless the lender concludes that there is verifiable evidence of the contrary.
Verifying Income and Assets
The lender is responsible for collecting income and asset verification documentation for every wage-earning member of the home for ECLT’s internal review and such evidence must be provided to ECLT and retained in each client’s file.
Income and assets shall be verified by the lender’s internal underwriting processes and other such procedures as necessary (e.g. pay stubs, tax returns, employer verification, Social Security Administration, or public assistance agency).
Acceptable Source Documents
Acceptable source documents include but are not limited to the following.
Employment & Income Documents
Most recent 2 months of pay stubs (W-2 employees)
Self-employment documentation
Federal tax returns
Verification Documents
Verification of Employment
Signed borrower documents needed for loan review
ECLT DPA Doc Requirements
ECLT DPA Application
Proof of income
Proof of assets (6 months)