We want to do an IHDA down payment assistance loan and I found this:
- 7. SmartMove ProgramFirst Mortgage plus Down Payment Assistance (DPA):Consists of a Smart Move First Mortgage plus a Smart Move DownPayment Assistance LoanCharacteristics of Down Payment Assistance:• Above 80% AMI- Provides 3 percent of the purchase price, up to $6,000- 0 percent, 10 year forgivable loan, recorded as a second mortgage• Below 80% AMI- Provides a flat $6000 - 0 percent, 10 year forgivable loan, recorded as a second mortgage – Mortgage balance is repaid if home is sold or 1st mortgage refinanced within 1st 10 years Current Rates 4.00% FHA, USDA, VA 4.35% Conventional Subject to change.
This means that if I get equity and want to switch to conventional loan to eliminate mortgage insurance I have to wait 10 years and I have to pay back the down payment loan?
