Low Down Payment Mortgage Loans
Sometimes coming up with a 20% down payment can be difficult if not impossible. There are options when it comes time to purchasing a home. Let First Neighbor Bank help you with a mortgage option that will get you into your home with a lower down payment.
Conventional Mortgage Loans
We offer fixed rate conventional mortgage loans with as little as 5% down, these loans are serviced locally. As a reminder, Private Mortgage Insurance (PMI) is required on mortgage loans with less than 20% down payment.
Downpayment Plus®
The Downpayment Plus® program offers individual down payment assistance.*
- 2023 Maximum grant is lesser of $10,000 ($6,000 in previous years) or 25%of the first mortgage amount. Minimum $1,000 net homebuyer contribution.
- DPP Advantage® : No homebuyer contribution required
- Reservations first-come, first-served,
- Grants are forgiven 1/60th per month over 5 years, and secured with a recorded retention agreement
Qualifying income levels apply and grants are forgivable after receiver owns the property for a period of five years. This is a federally backed program. Funds are on a first come, first served basis and will available until funding is exhausted for the year.
*Downpayment Plus® is a program from the Federal Home Loan Bank of Chicago. Restrictions apply. Visit the Federal Home Loan Bank of Chicago’s website for complete requirements. Downpayment Plus® is a registered trademark of the Federal Home Loan Bank of Chicago.
If you do not meet the requirements of the low down payment option loans, please talk to us about a conventional loan with private mortgage insurance available through First Neighbor Bank.
