Frequently Asked Questions

A silent second mortgage is a second loan placed on your home that sits behind your primary (first) mortgage. It's called "silent" because it requires no monthly payments. The balance accrues over time and is repaid when one of several triggering events occurs (most commonly, when you sell the home or do a cash-out refinance of the first mortgage). Rate-and-term refinances do not require payoff if Dream Home Fund subordinates the silent second behind the new first mortgage.

No. Dream Home Fund is a faith-rooted organization, but our programs are open to all eligible borrowers regardless of religion, race, color, national origin, sex, disability, or familial status. We serve all neighbors in need, in full compliance with fair housing law.

Under Dream Simple, Dream Home Fund provides down payment assistance sized to 3.5% of your purchase price, capped at $45,000. The actual amount is based on your purchase price, first mortgage terms, and program guidelines at the time of application.

Dream Home Fund is launching in the Sunbelt states to start. Eligibility in your specific state may be subject to state-level regulations and HUD approval status. Contact us to confirm availability in your area.

Dream Home Fund is currently in the process of obtaining HUD-Approved Nonprofit Roster approval, which is required to originate DPA silent second mortgages. We are accepting borrower interest and lender enrollment inquiries now. We will notify you as soon as approval is granted and funds are ready to deploy. Contact us to get on the list.

Income guidelines vary by program and by the capital partner funding a given DPA pool. Some programs have income caps; others focus on affordability and the borrower's overall readiness rather than a fixed income threshold. Rather than ruling yourself out, contact us with your specifics and we'll let you know which programs you may be eligible for.

Credit requirements are tied to your first mortgage lender's guidelines, not set independently by Dream Home Fund. Most first mortgage programs require a minimum score of 620 or higher. Contact us and we can help point you toward loan officers familiar with our DPA program.

Dream Home Fund DPA is available for primary residences only. Investment properties and second homes are not eligible.

Dream Home Fund DPA is designed to work alongside FHA and conventional first mortgages. VA and USDA loans have specific restrictions on subordinate financing. Contact us to confirm compatibility with your specific loan type.

Layering multiple DPA programs is sometimes possible but depends on the guidelines of each program involved. Contact us to discuss your specific situation before assuming programs can be combined.

You do not apply directly with Dream Home Fund. Our DPA is a silent second mortgage that always sits behind a first mortgage, so it is delivered through your lender. Ask your first-mortgage lender to coordinate with Dream Home Fund as part of underwriting your loan. See the full process →

That happens often, especially while we are in the founding stage. Send your loan officer to dreamhomefund.com, or tell us their name and email through our contact form and we will reach out to them directly. There is no cost for a lender to onboard and the silent-second structure is standard.

For our Dream Simple program: no application fee, no pre-approval fee, and no charge of any kind unless your silent second actually funds at closing. Upon successful funding, Dream Home Fund collects a $500 Program Administration Fee, payable directly to Dream Home Fund at closing. All fees are charged only upon successful loan funding. No fees are collected if the transaction does not close. Program fees support Dream Home Fund's charitable mission of expanding access to homeownership and housing assistance. Standard third-party closing costs (such as a HUD-approved homebuyer education course, typically around $99) still apply but are not paid to Dream Home Fund.

Once your lender submits a complete file to us, we aim to issue a DPA decision within 5 to 7 business days. Timing may vary based on volume and document completeness.

Your first mortgage lender must be aware of and approve the silent second as part of your overall loan structure. Dream Home Fund works transparently with lenders, and the silent second will be disclosed in your loan documents. Most lenders who work with DPA programs are familiar with this structure.

At a triggering event (most commonly sale or cash-out refinance), you repay the original principal plus any accrued interest. For Dream Simple, the rate on the silent second is your first mortgage rate plus 1% (simple interest). For rate-and-term refinances, Dream Home Fund subordinates the silent second behind the new first mortgage and the existing balance continues to accrue at the same rate; voluntary payoff at refinance is recommended to stop further interest accrual. Dream Home Fund will provide a payoff statement when requested.

Yes. Simple interest accrues on the outstanding balance from the date of closing. Because there are no monthly payments, the accrued interest is added to the balance due at repayment. For Dream Simple the rate is your first mortgage note rate plus 1% per annum.

Yes. There is no prepayment penalty. You may pay off the silent second at any time before sale or refinance.

Yes. Some programs offer forgivable loans or grants that can be used to satisfy a silent second mortgage if you meet their specific guidelines, such as remaining in the home for a certain number of years or meeting ongoing income requirements. A HUD-approved housing counselor can help you identify programs in your area, and Dream Home Fund may be able to connect you with program partners who can help. Reach out to us directly and we will point you in the right direction.