Mid America Mortgage, Inc. announced it has added down payment assistance (DPA) to the slate of mortgage products and services offered through its correspondent division. This is an expansion of the DPA program Mid America created for its retail channel in 2019 in partnership with the Rosebud Economic Development Corporation.
“DPA programs are a vital tool for expanding mortgage credit access to creditworthy, cash-poor homebuyers,” said Mid America Owner and CEO Jeff Bode. “Given the success Mid America has experienced amongst its retail borrowers, we felt the time was right to expand this opportunity to our correspondent customers so that they, too, could help borrowers take advantage of the market’s low interest rates and begin their homeownership journey.”
The program combines an FHA-insured first mortgage with a five-year second lien up to 5% of the home’s purchase price. Borrowers can use the second-lien funds for their down payment and/or to cover closing costs. Interest does not accrue on the second lien, and borrowers do not need to make monthly payments on the second lien. If the borrower remains in the home and stays current on their first mortgage, the second lien is fully forgiven after five years.
“Mid America began this partnership with Rosebud a year ago to offer its direct borrowers another option to realize their dreams of homeownership. Now, by expanding this down payment assistance program to our correspondent platform, Mid America can broaden homeownership opportunities through our correspondent clients to help even more families make this dream a reality,” said Julas Hollie, National Sales Director of Mid America’s correspondent division.