Down payment assistance is no longer an FHA-only conversation. Kind Conventional DPA is now available, pairing a Fannie Mae or Freddie Mac first mortgage with up to 4% of the lesser of purchase price or appraised value in assistance, with no dollar cap.

For brokers who have been sending every cash-short borrower down the FHA path, this opens a second lane. One with conventional loan limits, conventional pricing, and mortgage insurance that comes off.

What Kind Conventional DPA Offers

• Up to 4% of the lesser of purchase price or appraised value in assistance

• Proceeds may fund up to 100% of the borrower's cash to close

• Max LTV 97% conforming, 95% High Balance, with max CLTV of 105% (100% in Nebraska)

• High Balance loan amounts eligible, so the loan size is not capped at an FHA county limit

• HomeReady® and Home Possible® eligible, alongside standard conforming

• 2/1 seller buydown permitted on standard conforming

How the Assistance Works

The assistance comes as a 30-year interest-only second mortgage at a rate that matches the first. The borrower makes an interest-only payment for the full term, and that payment is included as a liability when calculating DTI.

Principal is deferred, not forgiven. It becomes due at the sale, refinance, transfer, maturity, or early payoff of the first mortgage. Repayment is required.

One practical note worth passing along to your borrowers: because the second is interest-only, the monthly payment stays small relative to an amortizing second. On a 4% assistance amount, that difference can be what keeps a tight file inside DTI.

What This Means for You

Some of the borrowers you have been running as FHA may be better served here, particularly in markets where the FHA county limit is doing the limiting rather than the borrower's credit or income.

• Larger loan amounts than FHA allows in most counties

• Cancellable mortgage insurance, with no life-of-loan premium

• No upfront mortgage insurance premium financed into the balance

• Stackable assistance, since other down payment and closing cost programs may be permitted alongside, provided they meet Fannie Mae Community Seconds or Freddie Mac Affordable Seconds guidelines and remain subordinate

It is also worth a second look at any file you set aside recently because the buyer qualified on income and credit but not on cash to close.

The Details That Matter

• Minimum 660 FICO®, DTI up to 50%

• No first-time homebuyer requirement at 95% LTV or below

• Income limits apply: 140% AMI standard conforming, 80% AMI for HomeReady® and Home Possible®

• Homebuyer education required for all borrowers prior to closing

• Purchase transactions and primary residences only

• Single-family, condo and PUD eligible

• Available in 37 states

The Kind TPO Advantage

We built this to sit next to the FHA DPA you already use, not to replace it. Different borrower, different structure, same goal.

• We move fast, with the program live and ready to price now

• We communicate clearly, including the parts that need explaining

• We prioritize people over process, always

Connect with your Kind Account Executive to see whether Kind Conventional DPA fits the file on your desk today.

Be Kind. Be Ready. Be Informed.
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‍_{Program not available in AZ (Phoenix and Maricopa County not eligible), CA, DE, FL, GA, LA, NV, NJ, NY, OH, SC, TX, WA or WV. Eligible state list varies by second lien partner. Contact your Account Executive for the current list. This information is a summary and may not reflect complete program guidelines. Programs, rates, terms and fees are subject to change without notice. This is not a commitment to lend or extend credit. All loans subject to credit approval. Intended for use by mortgage professionals only, not for consumer distribution.}

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