Mutual Assist DPA

First Mortgage Overlays:

  • 600 minimum FICO
  • 3-4 Unit Properties ineligible.
  • Single Wide Manufactured ineligible – Doublewide only allowed.
  • AUS Approval Required (no manual underwrites)
  • Meet FHA
  • (HUD) Conforming loan amounts on the 1st
  • No Construction loans.
  • Ineligible states – MA, NY, WA, WV


Product Code:  FHA30MAFA

First Mortgage Loan Types & Terms

  • Loan Types
    • FHA: 203(b), 203(b)(2) in accordance with FHA guidelines.  Cooperative housing (co-op) is not eligible.
  • Loan Term
    • Due and payable in 30 years
  • Maximum Loan Amount
    • Conforming Balance Only
  • Max LTV/CLTV
    • Follow loan agency guidelines

Down Payment and Closing Cost Assistance (DPA)

  • DPA is available from NHF for Purchase Transactions as outlined below:
    • DPA Amount
      • Up to 3.5% of the Sales Price or Appraised Value (lesser of)
    • DPA General Terms
      • Proceeds may be used for down payment and/or closing costs. There must be no cash back to the borrower from the DPA proceeds.  Lender upfronts the DPA amount at closing to be reimbursed by Servicer on behalf of NHF upon purchase of the first mortgage loan.
    • DPA Second Mortgage Loan Terms:
      • 10 Year Term
      • Note Rate is 2% greater than rate on 1st loan
      • 10 Yr Fully Amortizing loan
      • Monthly payments required.
      • Second loan amounts must be rounded up to nearest dollar
      • No subordination allowed

Borrower Eligibility

  • Occupancy
    • No First Time Homebuyer Requirement
    • Borrower must occupy the residence as their primary residence within 60 days of closing.
    • Borrowers may have ownership in other property at time of closing, per agency guidelines.
    • Non-Occupant co-borrowers allowed.
  • Eligible Properties
    • Single Family Residence
    • 2 units
    • PUD’s
    • Townhouses
    • Condominiums (must be agency approved and must not be litigation)
    • Double wide manufactured housing available


  • Occupancy
    • Minimum Credit Score
      • FHA 600
      • Each borrower must have minimum of one credit score
    • Maximum DIT
      • AUS approval required
    • Homebuyer Education
      • Homebuyer Education for at least one borrower to be provided by Fannie/Freddie or HUD approved non-profit counseling agency.


  • Mortgage Insurance
    • Follow Agency Guidelines
  • Interest Rates and Mortgage Locks
    • 30 and 45 day locks available only
    • Price Adjustments
      • All adjustments are cumulative.
      • Loans are subject to the LLPA’s and Fees as noted on the rate sheet
    • Fees and Points Lender may charge to Borrower
      • Origination fee up to 2% of the First Mortgage
      • Must pass points and fees testing.