Lending

HRDC's Road to Home Down Payment Assistance Program Information

This information is to help households, lenders, and realtors determine if a loan will meet the down-payment assistance requirements of The Road to HOME. It is an estimation tool, not a substitution for the guidelines.

Borrower Eligibility:

• The household must qualify as a first-time home buyer as defined by MBOH.

• No one in the household can currently own residential property.

• The household must complete Homebuyer Education.

• The household cannot exceed the income guidelines for the program.

• The household must meet their required contribution of 1% of the purchase price.

• There are limits on the household's Net Assets after closing.  Please inquire as to what those limits are.

Financing Eligibility:

• Only an MBOH first can be used. RD Direct and VA are allowed in certain situations.

  • Recapture tax may be applicable on MBOH loans if sold before 9 years.

• The purchase price cannot exceed the HOME limits.

• The home must be and remain the household's primary residence and will need to be certified each year.

• The total loan to value (including down-payment assistance) less than 105%.

• The proposed interest rate must be and remain fixed for the entire term of the loan and cannot exceed MBOH loan percentage rate by more than 1.5 points.

• The proposed front-end ratio must be between 28% and 32%.

• The proposed back-end ratio must be less than 42%.

Property Eligibility:

• The property must be currently owner-occupied or vacant for the last 90 days.  It cannot be tenant occupied.

• The property must be inspected by a certified home-inspector. 

• The property must “PASS” the HRDC Housing Quality Inspection.​

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