Down payment assistance loan (DPAL)

2020 Annual Latino Home Fair

Hacienda CDC’s $20,000 Hacienda CDC’s down payment assistance loan (DPAL)

The Down-Payment Assistance Opportunity Raffle will give 10 people the opportunity to win one of two- $20,000 down payment assistance opportunities  to be applied to the down payment on their first home. Of the 10 people who win the raffle, the first 2 winners that fulfill the eligibility requirements will receive down-payment awards of $20,000 each.

Hacienda CDC will give away 2 down payment assistance loans  (of $20,000.00 each) towards the purchase of their first home. The funds will be wired to the title company before closing of escrow.

*Eligible recipients:

  • Attend the welcoming ceremony, keynote speaker presentation, and at least 2 workshops during the fair.
  • Be one of the winners in the drawing the day after the Latino Home Fair.
  • Complete a Hacienda CDC Homeownership Support Program registration form

Mandatory Requirements:

  • Be a first-time homebuyer who has not owned a home within the past three years
  • Be at least 18 years old
  • Total household income must not exceed 80% of HUD median family income for the Portland Metro area adjusted to household size
  • Combined liquid assets (cash and equivalent, stocks, bonds, and banks account balances, excluding retirement accounts) cannot exceed $10,000 at closing
  • Borrower(s) must contribute a minimum of $500 of their own funds (Gift funds are acceptable)
  • Mortgage approval letter

The terms of the loan are as follows:

Interest Rate:   0% annual interest, deferred payment

Loan Terms:      30 years

Forgiveness:     Hacienda CDC will forgive 50% of the original loan amount on the 15th anniversary of the original loan note. 3% of the original loan amount will be forgiven annually on the anniversary date of the original loan note, starting year 16 and continuing until year 29. At the end of year 30, any remaining balance will be forgiven. 

Loan Repayment Options:       

Repayment of the loan, or any remaining loan balance, is due upon sale or transfer of the property, or when the borrower no longer maintains the property as owner occupied within the 30-year term of the loan. The amount of the loan to be repaid depends on time of occupancy, as described above. 

Conditions:

  • Must be used with a first mortgage loan from a participating lender
  • $500 Underwriting Fee plus other third party closing costs apply

Conditions: The DPAL loan is administered by Hacienda CDC.  The final receipt of your DPAL funding is subject to confirmation that program guidelines and funding conditions are met as outlined by our funders.