Common use of Down Payment Assistance Clause in Contracts

Down Payment Assistance. In connection with the Program, each Mortgagor will be provided a down payment assistance grant equal to four percent (4%) or five percent (5%) of the original principal amount of the Mortgagor’s Mortgage Loan (the “DPA Grant”) depending on the mortgage rate chosen. The DPA Grant is being provided by the Authority, as evidenced by the Gift Letter and other requirements established in HUD Mortgagee Letter 2013-14. As a convenience and in accordance with the requirements established in HUD Mortgagee Letter 2013-14, the Lender will fund each DPA Grant at the time of closing of each Mortgage Loan. The Servicer will reimburse the Lender for the DPA Grant at the time of the sale of the mortgage loan to the Servicer. The DPA Grant is not a loan and is not repayable by a Mortgagor.

Down Payment Assistance. In connection with the Program, each Mortgagor will be provided a down payment assistance grant equal to three percent (3%), four percent (4%) or five percent (5%) of the original principal amount of the Mortgagor’s Mortgage Loan (the “DPA Grant”) depending on the mortgage rate chosen. The DPA Grant is being provided by the Authority, as evidenced by the Gift Letter and other requirements established in HUD Mortgagee Letter 2013-14. As a convenience and in accordance with the requirements established in HUD Mortgagee Letter 2013-14, the Lender will fund each DPA Grant at the time of closing of each Mortgage Loan. The Servicer will reimburse the Lender for the DPA Grant ▇▇▇▇▇ at the time of the sale of the mortgage loan to the Servicer. The DPA Grant is not a loan and is not repayable by a Mortgagor.