Welcome > Doing Business With Us > Doing Business with DIA > Residential Incentives > Down-Payment Assistance Program (DPA)
The Down-Payment Assistance Program (DPA) provides assistance to potential home owners for purchasing a primary residence in Downtown Jacksonville (Within the Downtown Northbank or Southside CRA).

To qualify for the DPA incentive program, buyers would need to have household incomes < 150% AMI (currently $66,450 for a household size of 1 for the Jacksonville MSA).

Buyers would be eligible for up to $20,000 in DPA.
  • The DPA will be in the form of a 0% interest rate, no payment, junior (2nd) lien mortgage.
  • The program will fund up to 10% of the purchase price
    • Borrower would be required to contribute a minimum of 2.5% of the purchase price.
    • Combined the owner would have 12.5% equity in the home.
  • The loan would be due on sale, transfer, refinance, or if additional debt is secured with the equity in the property
Loan Repayment & Shared Equity DPA Component
  • Loan repayment on the DPA loan will begin after the affordability period ends.
  • The affordability period will match the term of the 1st Mortgage Loan and be secured by a Junior (2nd) Mortgage.
  • At the end of the affordability period, the payments begin on the Junior Mortgage, as determined by a previously executed Promissory Note.
  • The Junior Mortgage can be forgiven when payments are scheduled to begin at the discretion of the DIA Board.
  • If the property is sold, refinanced, title to the property is transferred, or additional debt is secured by the equity in the property the Borrower would have to repay the principal amount of the Note (the DPA assistance) plus a percentage of any equity the homeowner has in the property.
    • The percentage of equity sharing is directly related to the percentage of 1st lien security (LTV) the DPA loan provided.
  • Any repayments of principal on a DPA loan, recoveries of DPA loan funds, and all Shared Equity payments shall be returned to the DPA Loan Fund for the purpose of making new DPA Loans.
For example:
  • Household seeks to Purchase a $150,000 owner occupied condo/townhome/single family detached unit in Downtown Jacksonville.
  • The Borrower contribution requirement is $3,750 (2.5% of the purchase price).
  • The DIA provides $15,000 of assistance through a Shared Equity DPA loan (10% of the purchase price)
  • The Mortgage (1st Lien) Lender Provides $131,250 in Financing.
  • If homeowner sells the property in year 10 for $75,000 gain, the Homeowner would owe the DIA $21,000 from the sale proceeds as follows:
    • The original $15,000 DPA Loan
    • Plus 10% of the gain of $60,000 ($75,000-$15,000= $60,000) on the sale = $6,000
The DIA recommends funding an initial pool of DPA loans with a commitment of $1,500,000 to assist an average loan size of $15,000 on 100 units of owner occupied housing.