Purchase Assistance Loan (PAL) Program
One Roof offers the Purchase Assistance Loan (PAL) program to help qualified homebuyers finance their down payment on a conventional mortgage with an affordable monthly payment. This loan can save you the cost of Private Mortgage Insurance (PMI) with as little as 2% down.
This program can help homebuyers:
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Build equity faster
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Pay down a mortgage quicker
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Allow for a higher tax deduction from increased interest paid
PAL is a monthly-paying loan and may be used in conjunction with other assistance programs.
You May Be Eligible If You:
- Have or will obtain One Roof’s Homebuyer Education Workshop certificate before closing
- Are purchasing a property that will be owner-occupied
- Are purchasing a property with four or fewer units
- Do not own any other real estate
- And at least one of the following is true:
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- Your household income is at or below 80% of Area Median Income (AMI) by household size* for the census tract you intend to purchase in; and/or
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- The home you intend to purchase is located in a CDFI-eligible Investment Area* within 30 miles of the City of Duluth
*For more information about Investment Areas and/or income eligibility, please call (218) 206-9231 or e-mail mbonney@1roofhousing.org
What Are The Loan Details?
- The minimum interest rate on the PAL is 5.5%, with either a fixed or adjustable rate.
- The PAL rate will be 0.5% under the locked first mortgage fixed rate. Or the rate will be 0.25% under the locked first mortgage adjustable rate.
- The maximum loan term will be 20 years on a 20-year to 30-year 1st mortgage, and cannot exceed the term of the 1st mortgage.
- The maximum PAL amount is 18% of purchase price or $40,000 whichever is lower. The PAL can be layered with other assistance programs to bring the 1st mortgage to 80% of the home’s value.
Important Notes
- Funds are limited and available on a first-come, first-serve basis
- First mortgage loan officers can fill out our Online Purchase Assistance Loan Form
- For more information on our loan programs, please call (218) 727-5372
- Loan and program availability dependent upon funding
NMLS: 380490