If you can afford monthly mortgage payments but don’t have enough saved for the down payment, a DAP loan can help you make the switch from renting to owning a home.
CHFA recognizes that saving enough money to pay the down payment is the main barrier to homeownership for many first-time homebuyers. If you have the monthly income to pay mortgage payments, but not enough money to pay the upfront costs, you may qualify for a low-interest loan to help you cover the down payment. Borrowers can finance the down payment with a DAP loan. A DAP loan is a second mortgage on your home. In most cases, the interest rate on a DAP loan will be the same as the interest rate on your CHFA first mortgage.