Mortgage Loans

What is the Downpayment Plus (DPP®) Program?

The Downpayment Plus (DPP®) Program * provides up to $10,000 in down payment and closing cost assistance for income-eligible homebuyers of less than or equal to 80% of HUD area median income (AMI). Alliance Bank provides assistance in the form of a forgivable grant, paid on behalf of the borrower, at the time the borrower closes on their first mortgage financing with Alliance bank.

How can I qualify for DPP® as a homebuyer?

Homebuyers must meet the income eligibility requirement and must:

• Contribute a net minimum of $1,000 from their own funds toward the purchase transaction
• Complete pre-purchase homebuyer education and counseling
• Live in the home as your primary residence.

How do I get Started?

To get started, simply contact an Alliance Bank Loan Officer or apply online HERE. All homebuyers must apply and qualify for first mortgage financing in order to access the funds. Once approved, your lender will confirm the DDP® grant reservation is in place. You will work with your lender to complete the required pre-purchase education and counseling through approved providers.
DPP® funds can be used to help with your down payment, closing costs, and/or up to $500 of your homebuyer education and counseling costs if you meet eligibility requirements.

Your Lender can answer questions you may have and help you understand how DPP® will work with your home purchase. Contact us today.

*Downpayment Plus is a program from the Federal Home Loan Bank of Chicago.  Restrictions apply. "Downpayment Plus" is a registered trademark of the Federal Home Loan Bank of Chicago.

WHAT IS A HELOC?

A “home equity line of credit” — more commonly referred to as a HELOC — is one option for homeowners looking to tap the value of their home for cash.
Unlike other options, though, HELOCs offer a line of credit, allowing you to withdraw, repay, and then withdraw more funds as needed over an extended period of time.

BENEFITS OF A HELOC

One of the biggest benefits of a HELOC is that it allows you extended access to cash. You can withdraw $10,000 here, another $30,000 there, pay it back, and withdraw even more. This makes a HELOC great for covering recurring expenses (like tuition, for example) or unexpected repairs, medical bills, and other charges that might crop up in the future.

HELOCs generally offer larger loan amounts and lower interest rates than unsecured loans, lines of credit, and credit cards. How much you ultimately qualify for will depend on how much equity you have and your credit score.

Other Benefits:

• Low interest rates
• Conveniently access funds when you choose. Access HELOC funds by transfers in person or over the phone or using your online banking.
• Possible tax advantages on the interest paid on a HELOC (Consult your tax advisor for more information)
• No pre-payment penalties.