Downpayment assistant programs (DPA) can be structured in many different ways, this article will mainly discuss the second option (second mortgages).
Gifts/Grants: Funds that do not need to be repaid. Read more here
Second mortgages/Subordinate Financing: Loans that may be deferred or forgiven after a certain period.
For DPA programs structured as second mortgages:
Navigate to the Liabilities tab
Click Add Liability
Set the Status to
ProposedSelect the liability type:
Mortgage - For standard subordinate loans
HELOC - For line of credit structures
Enter the DPA loan details:
Creditor - Name of the DPA provider
Balance - The loan amount
Monthly Payment - Enter $0 if deferred
Source - where the funds are coming from
Linked REO - select the REO starting with
subject
Click Save
