ShareThisCDA (DSELP) Providing Up To $5,000 To First-Time Home Buyers!
An individual or family who are approved to purchase a home using a CDA first mortgage loan can apply for a DSELP. DSELP is a Downpayment and Settlement Expense Loan Program. This program helps eligible borrowers by funding a portion of their closing costs. DSELP was allowing buyers to borrow up to $3,500 but has increased the amount buyers can borrow to $5,000. DSELP is a deferred loan that is repayable when you payoff or refinance the home or upon sale or transfer of the house you financed through CDA.
DSELP can only be used with a CDA first mortgage and some counties require that a buyer take a homebuyer education workshop and have a housing counseling certificate before the buyer signs a contract of sale. Check out www.mmprogram.org for more details. Also you can contact me and I will review the process with you. The current interest rate for CDA is 4.25% with 0 Points.
10 Responses to “CDA (DSELP) Providing Up To $5,000 To First-Time Home Buyers!”
August 20th, 2010 at 4:04 PM
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February 2nd, 2011 at 5:38 PM
Is this program still in effect for 2011? i looked at the http://www.mmprogram.com website and looked it had possibly old rates/info. thanks.
February 2nd, 2011 at 5:46 PM
Yes this program is still available along with the $5,000 DSELP. The Federal Home Loan Bank of Atlanta program has also started with $7,500 towards down payment and closing costs.
February 3rd, 2011 at 12:47 PM
Is there a “contribution” cap on the CDA loans as there is on regular FHA loans? From what I’ve read, FHA loans have a 3% seller contribution cap. However, I have not been able to find any information on whether there is a cap for CDA loans. If there is, does that percentage include any money received through the DSELP program or is that excluded from the total percentage?
February 4th, 2011 at 12:42 PM
Hello Carlyn,
The seller contribution cap for CDA is 6% the same as FHA. FHA has not reduced the seller contribution to 3% yet. It has been discussed but as of today the seller can contribute 6% towards your closing cost if you are using CDA or FHA. Conventional loans only allow 3% contribution. If you use DSELP and receive $5,000 you can still ask the seller for a 6% seller contribution. The $5,000 DSELP can be used towards your 3.5% down payment that is required for FHA or CDA. I hope this answers your questions for you. If you have any more questions please do not hesitate to contact me. Also their are several other programs you could potential qualify for give me a call for more details.
January 15th, 2014 at 3:07 PM
I was a first time homebuyer when I bought my home in 2008. I have a Conventional loan. I did, however, get $5000 from DSELP. I am in the process of selling my home now and my agent said there are some situations where borrowers now do not have to pay back the DSELP loan. Do you have any details on this?
January 20th, 2014 at 3:36 PM
I have not heard of a situation where DSELP funds are forgivable. You should check with your lender.
January 20th, 2014 at 3:36 PM
I have not heard of a situation where DSELP funds are forgivable. You should check with your lender.
February 17th, 2016 at 9:45 PM
Hello,
I purchased my home using a FHA/CDA loan in 2007. CDA contributed a 3500 dselp deffered loan and it shows as a secound morgage on my statement. My 1st deed shows my loan as an FHA (stamped with FHA case number)and a secound shows CDA for 3500. My question is, if I pay back the 3500 CDA loan,does my morgage become a st8 FHA morgage and I should then qualify for streamline refinancing? I am underwater on my morgage and dont qualify for CDA refinance. My goal is to be rid of CDA being a part of my morgage, does paying the cda dselp loan of 3500 get that freedom.
Thx
Allen
February 24th, 2016 at 5:58 PM
Hello Allen that’s a good question. Give Jeff St. Clair (First Home Mortgage) a call at 443-717-4176. He should be able to answer your questions for you. Thanks
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