Essex NHF (National Homebuyers Fund) DPA

Assistance amount

How much Essex NHF can contribute

Essex NHF provides 3.5% or 5% of the lower of the sales price or appraised value toward your down payment and closing costs — layered as a second lien on top of your FHA first mortgage.

3.5%

Standard assistance

Pairs naturally with FHA 3.5% down — potentially minimal cash at closing when combined with seller credits.

Example: $350,000 home → $12,250 in assistance

Maximum assistance

5%

Enhanced assistance

Maximum cash-to-close relief — covers down payment, closing costs, or both up to 5% of the lower of price or appraised value.

Example: $400,000 home → $20,000 in assistance

Two structures

Choose your Essex NHF second lien

Essex NHF offers a forgivable deferred second with no monthly payment, or a 10-year amortizing second with predictable monthly payback. Ryan and Steve model both against your FHA scenario before you write an offer.

Forgivable

Forgivable 2nd Lien

No monthly payment

3.5% or 5% assistance

25-year or 30-year deferred payment second lien
No monthly payment on the assistance layer
100% forgiven after 3 years if you keep the home as your primary residence
Must not sell, refinance, or pay off the first mortgage before forgiveness

Buyers who plan to stay at least 3 years and want zero second-lien payment burden.

Amortizing

Amortizing 2nd Lien

Structured payback

3.5% or 5% assistance

10-year fully amortizing second mortgage
Monthly principal-and-interest payment required
Interest rate set at 2% above the first mortgage rate
Rate disclosed at time of lock

Buyers who prefer predictable monthly payments on a 10-year schedule.

Borrower & property guidelines

Essex NHF opens doors for repeat buyers and files without income caps — but every scenario still goes through full FHA underwriting. Here is what we screen before you write an offer.

Check My Eligibility

Eligible states
Available nationwide except New York and Washington.
Minimum 600 credit score
No maximum DTI cap for AUS approvals. Manual underwriting follows standard FHA DTI limits.
First-time buyer not required
Repeat buyers are eligible — you do not have to be a first-time homebuyer.
No income limits
Essex NHF has no income restrictions on standard product guidelines.
Homebuyer education required
At least one borrower must complete a HUD, Fannie Mae, or Freddie Mac–approved homebuyer education course.
Primary residence only
The home must be your owner-occupied primary residence.
No temporary buydowns
Temporary interest rate buydowns are not allowed with Essex NHF assistance.
No co-signors
Co-signors are not allowed on Essex NHF transactions.
No renovation products
Renovation loan products cannot be paired with Essex NHF assistance.
Payment shock reserves
If payment shock is greater than 100% (for example, current rent is $1,000 and the new payment is $2,250 — payment shock is 125%: $1,250 ÷ $1,000), or the borrower lives rent-free, 2 months of reserves are required. Gift funds cannot be used to meet the reserve requirement. If rent is not clearly noted on the bank statement, it must be verified with a VOR.

Common questions

Essex NHF FAQ

Straight answers on assistance amounts, forgiveness rules, rates, geography, credit, education, and reserve requirements.

How much assistance does Essex NHF provide?

Essex NHF provides 3.5% or 5% of the lower of the sales price or appraised value toward your down payment and closing costs. The amount is paired with FHA first-mortgage financing through Luminate Bank.

How does the forgivable second lien work?

The forgivable option is a 25- or 30-year deferred payment second lien with no monthly payment on the assistance layer. It is 100% forgiven after 3 years if you keep the home as your primary residence and have not sold, refinanced, or paid off the first mortgage.

What is the interest rate on the amortizing option?

The amortizing second lien is a 10-year fully amortizing loan with monthly payments. The interest rate is set at 2% above your first mortgage rate — Ryan and Steve disclose the exact rate when quoting your file.

Where is Essex NHF available?

Essex NHF is available nationwide except New York and Washington. The property must be a primary residence. This is the National Homebuyers Fund (NHF) product — separate from state-specific Essex programs such as Essex TRFA in Washington.

What credit score do I need?

Essex NHF requires a minimum credit score of 600. There is no maximum DTI cap for automated underwriting system (AUS) approvals; manual underwriting follows standard FHA DTI limits.

Is homebuyer education required?

Yes — at least one borrower must complete an approved homebuyer education course through HUD, Fannie Mae, or Freddie Mac. This is stricter than programs that only require education when all borrowers are first-time homebuyers.

Are payment shock reserves required?

If payment shock is greater than 100% (for example, current rent is $1,000 and the new payment is $2,250 — payment shock is 125%: $1,250 ÷ $1,000), or the borrower lives rent-free, 2 months of reserves are required. Gift funds cannot be used to meet the reserve requirement. If rent is not clearly noted on the bank statement, it must be verified with a VOR.

Ready to explore Essex NHF assistance?

Talk with Ryan and Steve about forgivable and amortizing Essex NHF structures paired with FHA — so you know your cash to close before you shop.

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See all down payment assistance options

Essex NHF Down Payment Assistance