First-Time Homebuyers Down Payment Assistance Program

MKG Enterprises Corp (TPO) NLMS #1370394 is pleased to introduce the Down Payment Assistance program through our Wholesale channel.

The key features of this program are as follows:

  • Available for FHA products

  • Available in all states except New York and Puerto Rico

  • Assistance amount is up to 5% of the loan amount

  • Borrowers can use the assistance for the minimum required investment, closing costs, and/or prepaid items

  • Refer to the table below for additional information:


Soft Second

Repayable Second

Rate Advantage

Minimum FICO Allowed




Income Limit of Borrower

Must not exceed 115% of area median income

No income limit

Must not exceed 135% of area median income

Assistance Terms

30-year interest-free second lien. Forgiven in 3-10 years (3 years for assistance amount 3.5%, 10 years for assistance amount 5%

10-year second lien with 0% interest rate; or 30-year second lien with 5% interest rate

10-year second lien with 6% interest

Maximum Back Ratios

FICO 660+: As per AUS findings (50% if subject is manufactured home)

FICO 640-659: 50%

FICO 600-639: 45%


Homebuyer Education Certificate

Required if FICO is below 640

Not required


Home equity has proven to be one of the strongest ways for families to build and pass on intergenerational wealth and as a mortgage loan officer I am committed to guiding clients through the mortgage process. 


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Three home buying education moves: mortgage prequalification vs preapproval and using an IRA to purchase a home.


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1. Pre Qualification is an early step in your home buying journey. When you prequalify for a home loan, you’re getting an estimate of what you might be able to borrow, based on information you provide about your finances, as well as a credit check.

Prequalification is also an opportunity to learn about different mortgage options and work with your lender to identify the right fit for your needs and goals.

2. Pre Approval is as close as you can get to confirming your creditworthiness without having a purchase contract in place. You will complete a mortgage application and the lender will verify the information you provide. They’ll also perform a credit check. If you’re pre approved, you’ll receive a preapproval letter, which is an offer (but not a commitment) to lend you a specific amount, good for 90 days.

Find out how much house you can borrow before you start looking – and how you can make the strongest offer possible on the property you choose.

If you’re ready to make your dream of owning a home a reality, you’ve probably already heard that you should consider getting prequalified or preapproved for a mortgage. It’s time to understand exactly what each of those terms means and how they might help you. And when you’re working towards a goal this big, you want every advantage.

3. Using a 401(k) and 403(b) to purchase a home is borrowing from your retirement —this is the more tax favorable option. When you take out a 401(k) or 403(b) loan, you do not incur the early withdrawal penalty, nor do you have to pay income tax on the amount you withdraw up to $10,000 tax free earnings.

But you do have to pay yourself back—that is, you have to put the money back into the account and will pay yourself interest. The interest rate and the other repayment terms are usually designated by your 401(k) plan provider or administrator. Generally, the maximum loan term is five years. However, if you take a loan to buy a principal residence, you may be able to pay it back over a longer period than five years.


This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.


* Specific loan program availability and requirements may vary. Please get in touch with the mortgage advisor for more information.