The down payment is a second mortgage which has no interest rate and no monthly payments and will be forgiven after 10 years as long as the borrower keeps the SONYMA financing in place. The owner must continue to owner occupy the home through out this time. The maximum of this forgivable loan is $3,000 or 3% of the home purchase price, up to a maximum of $15,000. The Down Payment Assistance Loan cannot exceed the actual down payment and/or closing costs with the actual mortgage to purchase the house.
Although they are assisting you the borrower must make a minimum cash contribution of 1% of the value of the property but 3% for cooperatives. So if you are purchasing a home for $300,000 you will need at least $3,000 to put down. If you do not have 6 months worth of mortgage payments in the bank a coop would most likely not approve you.
I hope this information helped.
Dawn Noak - Realtor
(THIS IS MY ENTIRE ENTRY.)