HOME in 5 DPA Program Changes Fees

HOME in 5 underwent major changes in response to the Office of the Inspector General’s (OIG) recent investigation.  The changes in this case were much simpler than the changes for HOME PLUS a few months prior.  The OIG disapproved of the Home in 5 discount point charged to borrowers at closing by the lender.  As a result, the Home in 5 Down

Changes to HOME in 5 Home Loan

HOME in 5 Mortgage Changes

Payment Assistance (“DPA”) to remove the 1% discount fee.  The grant amount lowered by a matching e 1%.  The Home in 5 grant equals 4% of the borrower’s loan amount instead of the previous 5%.

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What is New with Home in 5:

Discount fee Eliminated

  • BEFORE: Lenders charged a 1% origination and 1% discount fee to HOME in 5 borrowers
  • NEW: Lenders do not charge a 1% discount fee to HOME in 5 borrowers

Grant amount decreased to 4% 

  • BEFORE: HOME in 5 grant equaled 5% of the borrower’s loan amount
  • NOW: HOME in 5 grant equals 4% of the borrower’s loan amount

These new changes avoid future issues with the OIG and HUD.  In addition, the originating lender receives more revenue on HOME in 5 loan from the master servicer.  This enables the lender to remain profitable.  It is a win-win for the borrower and the lender.

These changes for reserved HOME in 5 grant funds went into effect on July 29th, 2015. 

By Jeremy House


  1. I would like to ask it is possible to get prequalify with bad credit if so please
    Let’s me know . 480-427-6416

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