Increase in Maximum Downpayment and Closing Cost Loan Amounts
We recognize the current market is competitive for your borrowers as they face multiple bids, rising home prices, and a reduction in seller-paid closing costs. To meet these challenges and continue to support first-time homebuyer needs, we are increasing the maximum downpayment loan amounts for loans locked on or after June 29.
Effective for loans locked on or after June 29, downpayment and closing cost loans will have the following maximum loan amounts:
- Deferred Payment Loan: Up to $7,500
- Deferred Payment Loan Plus: Up to $8,500
- Monthly Payment Loan: Up to $10,000
You are no longer required to calculate the amount of the downpayment and closing cost loan based on 5% of the purchase price. Instead, select the loan amount your borrower needs in increments of $100. Review the Downpayment and Closing Cost Loans Comparison for more information. New Notes and Updated Resources
There will be new Deferred Payment Loan and Monthly Payment Loan Notes available in Forms Generator and on our website on June 29. We recommend you use Forms Generator in the loan commitment system to ensure you have accurate forms.
- If your loan is locked before June 29, you may use either the old or the new versions of the Notes.
- If your loan is locked on or after June 29, use the new versions of the Notes.
Web pages and online resources will also be updated on June 29 to reflect these changes.
We position our downpayment programs to be responsive to changing market conditions and borrower needs, while also meeting budget constraints. This may mean more frequent updates to our program limits or requirements. We appreciate your flexibility, and we will continue to communicate with you as we respond to an ever-changing market and industry.