Home Leverage Loan Program
These loans may be originated by Level A Lenders or Level B Originators.
Periodically, the Fund will announce funds available for the Leverage Program. The Leverage Program will be a "first ready, first served" program until the set-aside fund is exhausted.
Terms of the Leverage Program:
A Leverage loan is limited to the lesser of 20% of the acquisition cost or $20,000 for both existing housing and new construction. The Leverage loan is a 0% interest, 20-year level payment loan. The Leverage loan can be in second or third lien position.
As a recipient of a Leverage loan from the Fund, the borrower is subject to recapture restrictions during the affordability period. However, the amount of the outstanding balance of the Leverage loan must be paid in full.
First Deed of Trust Requirements:
The First Deed of Trust can be financed by public or private sources such as a bank or credit union. Examples of public sources are the Fund's Qualified Mortgage Bond Program and the Rural Development (RD) 502 program. Escrows for property taxes and insurances are required for all first deeds of trust associated with a Leverage loan.
The First Deed of Trust term may not be less than 20 years nor more than 33 years and must be for a "fixed interest rate" for the entire term of the loan. The interest rate on the First Deed of Trust may not exceed the then current interest rate of the RD program.
Do you own a home or land you wish to sell? Register your properties for our clients to see by sending details by email.