Common use of Down Payment Assistance Loans Clause in Contracts

Down Payment Assistance Loans. The Lender, on behalf of the Authority, shall provide down payment and/or closing cost assistance (the “DPA Loan”) at Mortgage Loan closing in an amount equal to the approved percentage of the principal amount of the Mortgage Loan to eligible borrowers in accordance with the terms of the Administrator’s Guidelines. DPA Loans shall be made by the Authority in accordance with the terms and provisions provided in the Administrator’s Guidelines. Such DPA Loans shall be applied solely to a down payment on the Mortgage Loan and/or to closing costs. The Lender shall be reimbursed for such DPA Loan amounts advanced to eligible borrowers upon purchase of the related Mortgage Loan by U.S. Bank National Association, as servicer (the “Servicer”), pursuant to the terms of the Program. Eligible Mortgage Loans reserved and closed under the Program must be submitted for purchase on behalf of the Authority by the Servicer. The DPA Loans will be made to Borrower as described in the most current Program guidelines. Under the Program, the Authority may also offer options for first mortgage financing with no down payment assistance, to which the same Administrator’s Guidelines apply.

Down Payment Assistance Loans. The Lender, on behalf of the Authority, shall provide down payment and/or closing cost assistance (the “DPA Loan”) at Mortgage Loan closing in an amount equal to the approved percentage of the principal amount of the Mortgage Loan (the “DPA Loan”) to eligible borrowers in accordance with the terms of the Administrator’s Guidelines. DPA Loans shall be made by the Authority in accordance with the terms and provisions provided in the Administrator’s Guidelines. Such DPA Loans shall be applied solely to a down payment on the Mortgage Loan and/or to closing costs. The Lender shall be reimbursed for such DPA Loan amounts advanced to eligible borrowers upon purchase of the related Mortgage Loan by U.S. Bank National Association, as servicer (the “Servicer”), pursuant to the terms of the Program. Eligible Mortgage Loans reserved and closed under the Program must be submitted for purchase on behalf of the Authority by the Servicer. The DPA Loans will be made to Borrower as described in the most current Program guidelines. Under the Program, the Authority may also offer options for first mortgage financing with no down payment assistance, to which the same Administrator’s Guidelines apply.