An interest free second mortgage designed as a down payment assistance program for first time homeowners for families and individuals who lack the down payment resources to purchase or construct a typhoon resistant home. Enabling legislation Public Law 21-99. Term of the loan is 30 years.


Eligibility Criteria:

1. U.S. Citizen or permanent alien resident

2. Resident of the territory for at least five (5) years

3. Minimum occupancy requirements five (5) years

4. Must be able to obtain financing from a participation financial institution.

5. Applicant must be a first time homeowner.


Qualifying Criteria:

1. Permanent employment

2. Acceptable credit

3. Maximum Income to Housing expense ratio 29%

4. Maximum Debt to Income (including housing expense) 41 % to include 1st and 2nd mortgage payments.


Collateral Criteria:

1. Maximum loan-to-value ratio 95.00% (1st mortgage and 2nd mortgage payments)

2. Improvement must be insurable with all perils.

3. Detached single family dwelling.

4. Town home and condominiums acceptable upon review and common area fees must be included in housing expense calculations.


Maximum Loan Amount:

1. The maximum interest free 2nd mortgage amount is $40,000.00

2. The first mortgage maximum amount is determined by the participating institution based on the borrower’s ability.


Funding Source:

1. Through legislative appropriations

2. Total funds appropriated through PL-21-99 was $4,500,000.00

3. Total funds received from the general fund to date is $2,000,000.00.