FHA Down Payment Assistance.
Cover the FHA down payment with a JMAC second, up to 101.5% CLTV
Program highlights.
- 3.5% fully amortized, 3.5% forgivable after 3 years, or 5% fully amortized
- No income limits
- Borrowers don’t need to be first-time homebuyers
- Conforming or high-balance
Key figures.
- Score from
- 600
- Purchase, primary residence
- CLTV up to
- 101.5%
- Purchase, primary residence
- Loans to
- FHA county limit
Limits by transaction.
Score · CLTV · Loan in each cell, with the tier each needs beneath.
| Transaction | Primary residence |
|---|---|
| Purchase | 600+ score101.5% CLTVloans to FHA county limit |
What to know.
- Three options
- 3.5% or 5% second3.5% repayable (100% CLTV), 3.5% forgivable after 3 years (100% CLTV), or 5% repayable (101.5% CLTV), for the down payment and closing costs.
- Who qualifies
- No first-time buyer requirementNo program income cap, and repeat buyers qualify. The borrower must still meet FHA and JMAC requirements.
- One lender
- Both loans close with JMACThe FHA first at 96.5% LTV and the second close together at JMAC. The first follows JMAC’s FHA guidelines.
- Credit
- 600+ FICO with AUS approvalManual underwriting at 660+ with a 45% maximum DTI. Each borrower needs at least one credit score.
- Second-lien terms
- Repayable or 0% forgivableRepayable: the first lien’s rate + 2%, fully amortizing over 10 years, payment counted in DTI. Forgivable: 0% interest and no payment, not counted in DTI, forgiven after 3 years when its conditions are met.
- Also available
- High balance and 2-1 buydownA 2-1 temporary buydown on the first lien. In Washington, the forgivable option and high-balance loan amounts aren’t offered.
- Ways to qualify
- Full docNot offered: bank statements, P&L only, WVOE only, asset utilization, DSCR, ITIN and foreign national.
Documents.
Other programs.
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Questions brokers ask.
Is the assistance a grant?
No. It is a second lien. The two repayable options have a monthly payment at the first lien’s rate plus 2%. The forgivable option has no payment and is forgiven after 3 years when its conditions are met; it is due if the first mortgage is paid off before then.
Can I arrange the first mortgage elsewhere?
No. The FHA first and the second must close together with JMAC. Cash back to the borrower at closing isn’t allowed, and the second can’t be subordinated.
What changes for a Washington property?
The forgivable option and high-balance loan amounts aren’t offered in Washington. The 3.5% and 5% repayable options are.
Is this a HUD or FHA program?
No. It is JMAC’s own second lien, paired with an FHA-insured first. JMAC is not acting on behalf of HUD or FHA. Terms can change; the current guidelines govern.
Your next borrower. Our next conversation.
Bring us your next FHA Down Payment Assistance loan.
Send the scenario, ask JMAC a question, or get set up with your lending team.