For enrolled mortgage lenders originating Dream Home Fund DPA silent second mortgages. Contractual requirements, submission procedures, closing requirements, and post-closing operations.
Last revised: May 20, 2026. This manual may be updated at any time without prior notice. Updates and changes will be communicated to enrolled lenders via email and posted at dreamhomefund.com. Continued participation in the program constitutes acceptance of the most current version.
Vision. Every neighbor in need has a place to call home.
Mission. A faith-rooted nonprofit expanding access to homeownership and housing assistance through transparent, lender-mediated down payment assistance.
Dream Home Fund is a faith-rooted California nonprofit public benefit corporation with 501(c)(3) tax-exempt status. Dream Home Fund operates as a down payment assistance (DPA) provider. All DPA is structured as a silent second mortgage subordinate to a borrower's first mortgage. Dream Home Fund does not originate first mortgage loans, hold deposits, or provide financial planning, investment, tax, or legal advice.
This Lender Program Manual ("Program Manual") is intended for use by all Dream Home Fund enrolled lenders ("Lender" or "Lenders") who have entered into a Lender Participation Agreement ("LPA") with Dream Home Fund. Lenders are to use this Program Manual as a guide for originating Dream Home Fund DPA silent second mortgages and complying with Dream Home Fund's requirements under the program. Please refer to the applicable Program Handbook (for example, the Dream Simple Program Handbook) for detailed, program-specific requirements.
This Program Manual contains current Single Family DPA program requirements and procedures and is incorporated into the LPA. Dream Home Fund will update this manual from time to time. Updates and changes will be communicated to enrolled Lenders via email and posted at dreamhomefund.com.
Whenever possible, Dream Home Fund will provide enrolled Lenders five (5) business days' notice of program or policy changes. Some exceptions may apply (for example, changes directed by HUD, GSEs, or applicable State authorities that do not permit a 5-day notification window).
Questions relating to this Program Manual or Dream Home Fund's policies and procedures should be directed to partners@dreamhomefund.com.
To participate in Dream Home Fund's DPA programs, each Lender must be enrolled with Dream Home Fund and must enter into a Lender Participation Agreement (LPA). The LPA incorporates the policies and procedures set forth in this Program Manual and in the applicable Program Handbook.
To qualify for and maintain enrollment, a Lender must:
Dream Home Fund reserves the right to terminate any Lender's participation, with or without cause, upon written notice. Dream Home Fund may also suspend Lender participation pending investigation of any concern regarding compliance, performance, or eligibility.
Enrolled Lenders are subject to annual recertification. Each year, the Lender shall submit to Dream Home Fund updated evidence of:
Failure to complete annual recertification by the specified date may result in suspension or termination of the Lender's participation.
Lenders may originate Dream Home Fund DPA silent seconds via wholesale or correspondent arrangements with third party originators ("Third Party Originator" or "TPO") provided that:
Dream Home Fund reserves the right to restrict or terminate the Lender's use of any TPO at any time.
At all times during participation in Dream Home Fund's programs, each Lender shall maintain, at its expense:
Evidence of coverage shall be provided to Dream Home Fund at initial enrollment, at each annual recertification, and upon Dream Home Fund's request.
The Lender, including Lenders using Third Party Originators, shall indemnify and hold Dream Home Fund harmless against any and all expenses, fees, losses, damages, penalties, fines, forfeitures, legal fees, and related costs that Dream Home Fund may incur as a result of any failure of the Lender or TPO to comply with this Program Manual, the applicable Program Handbook, the LPA, or any applicable State or Federal Law or Regulation. In the event of any litigation, investigation, legal settlement, consent order, enforcement action, claim, suit, or proceeding arising from the acts or omissions of the Lender or TPO, the foregoing obligation to indemnify, defend, and hold Dream Home Fund harmless shall apply regardless of whether such action is meritorious.
Each Lender shall comply with all applicable local, State, and Federal laws and regulations governing residential mortgage lending, including but not limited to the Fair Housing Act, Equal Credit Opportunity Act (ECOA), Home Ownership and Equity Protection Act (HOEPA), Truth in Lending Act (TILA), Real Estate Settlement Procedures Act (RESPA), TILA-RESPA Integrated Disclosure (TRID), the Secure and Fair Enforcement for Mortgage Licensing Act (SAFE Act), and laws prohibiting wrongful discrimination. The Lender is responsible for drawing and delivering to the borrower any disclosures required by TILA, RESPA, TRID, and applicable State law.
If any silent second loan is found not to be compliant with applicable State or Federal Laws and Regulations, the Lender shall be subject to the repurchase and indemnity provisions of the LPA.
If it is subsequently determined or discovered that the borrower never occupied the Dream Home Fund-financed property, fraudulently induced the Lender or Dream Home Fund to fund the silent second loan, or otherwise made a material misrepresentation in connection with the loan, Dream Home Fund may take any appropriate action, including but not limited to:
All Dream Home Fund silent seconds are subject to periodic audit by Dream Home Fund and applicable State and Federal regulatory authorities.
The Lender's origination, processing, underwriting, and other lender fees on the first mortgage are subject to the Lender's own pricing, applicable State and Federal laws, and the requirements of the borrower's first mortgage program. Dream Home Fund does not impose any cap on first mortgage lender charges. Dream Home Fund's own Program Administration Fee on the silent second is set forth in the applicable Program Handbook (currently $500 for Dream Simple) and is collected at closing.
The Lender is responsible for complying with all applicable laws and regulations regarding privacy-protected borrower information, including but not limited to the Gramm-Leach-Bliley Act (GLBA), the California Consumer Privacy Act (CCPA) where applicable, and the borrower's privacy disclosures provided at application. The Lender shall use borrower information received from Dream Home Fund solely for the purpose of verifying the borrower's eligibility for a Dream Home Fund DPA silent second and administering the resulting loan.
Dream Home Fund's Employer Identification Number (EIN) is provided to enrolled lenders on request and is verifiable through the IRS Tax Exempt Organization Search.
Dream Home Fund offers the following DPA programs through enrolled Lenders. Availability may change from time to time and will be announced to enrolled Lenders via email and on dreamhomefund.com.
Dream Home Fund DPA silent second loans may be used solely for the borrower's down payment on the purchase of an owner-occupied primary residence. Dream Home Fund silent second funds may not be used for:
Loan submissions to Dream Home Fund contain borrower personally identifiable information (PII), including but not limited to social security numbers, financial account information, tax returns, and credit reports. Dream Home Fund operates a full-file review model and complies with the FTC Safeguards Rule (16 C.F.R. Part 314), the Gramm-Leach-Bliley Act, and applicable California privacy law. Lender transmission of borrower files to Dream Home Fund shall meet the following standards:
Dream Simple Submission, [Borrower Last Name], [Property Address]Dream Home Fund routes submissions to underwriting and compliance staff with access controls and audit logging. Dream Home Fund may, at its discretion, designate or change the required submission channel and will notify enrolled Lenders in advance. Send the submission to partners@dreamhomefund.com until a dedicated portal is designated.
Each submission shall include a completed Lender Submission Checklist as the file's cover sheet, signed by the Lender's authorized representative. The checklist captures lender contact information, borrower and transaction summary fields, the Lender's certification of file completeness and borrower eligibility, and a documents-included inventory. The Lender shall also submit a complete loan file including, at minimum, the following items:
Dream Home Fund may request additional documentation as needed to verify eligibility. Incomplete files will receive an incomplete status and will not be considered received until the complete file is uploaded.
Dream Home Fund reviews complete and correct loan files on a first-come, first-served basis. Dream Home Fund's target compliance review turn time is 5 to 7 business days from receipt of a complete file. Turn times may vary based on volume and document completeness. Lenders should take review timing into account when scheduling closings.
Upon completion of the review process, Dream Home Fund will issue one of the following determinations via email to the submitting Lender:
Dream Home Fund reserves the right to re-review any submitted file and to re-verify any documentation at any time prior to funding.
The following borrower eligibility requirements apply to all Dream Home Fund DPA silent seconds. Program-specific requirements (such as Dream Simple's first-time homebuyer requirement) are set forth in the applicable Program Handbook.
All borrowers must be either a citizen or other National of the United States, or a "Qualified Alien" as defined at 8 U.S.C. § 1641.
The Dream Simple program is restricted to first-time homebuyers. A first-time homebuyer is defined as a person who has not had an ownership interest in any principal residence, or resided in a principal residence owned by their spouse, during the three (3) years preceding the execution of the Dream Home Fund loan documents.
An ownership interest includes fee simple, community property, life estate, settlor or vested beneficiary of a trust holding the home, ownership interest as a borrower or co-borrower on a mortgage, interest in a business entity holding the home, and inherited properties.
The borrower(s) shall execute the Dream Home Fund Borrower Affidavit and First-Time Homebuyer Certification, which must accompany every submission. Where prior ownership documentation is unclear, Dream Home Fund may request a Letter of Explanation and supporting documentation (cancelled rent checks, Verification of Rent, utility records, or similar) demonstrating the borrower's residence at another location during the three-year lookback.
All occupant borrowers must occupy the subject property as a primary residence within sixty (60) days of closing and continue to occupy the property as a primary residence for the term of the silent second. Investment properties, second homes, and vacation homes are not eligible.
Non-occupant co-borrowers and co-signors are permitted on the first mortgage in accordance with the first-mortgage lender's guidelines. At least one borrower on the first mortgage must be a first-time homebuyer (for Dream Simple) and must occupy the property as a primary residence within 60 days of closing. All borrowers and co-borrowers shown on the first mortgage shall be listed on the Dream Home Fund silent second documentation, regardless of occupancy.
Because California is a community property state, the non-purchasing spouse of an occupying borrower may not be on title, have any vested interest in the subject property, be a party to the purchase agreement, or be added to title after closing. All individuals taking title must comply with all program eligibility requirements as borrowers.
At least one occupant borrower must complete a HUD-approved homebuyer education course prior to closing. Any HUD-approved provider is acceptable. A completion certificate dated within one (1) year of closing must accompany the loan submission. The borrower is responsible for any course fee, which is not paid to Dream Home Fund.
In addition to HUD-approved homebuyer education, at least one occupant borrower must complete the Dream Home Fund Financial Education Course prior to closing. The course is administered by Dream Home Fund at no cost to the borrower and is delivered online. It supplements but does not substitute for HUD-approved homebuyer education. A machine-verifiable completion certificate must accompany the loan submission.
The Lender shall confirm at submission that the borrower has completed both required courses. The Dream Home Fund Financial Education Course is currently in development and will be available before originations begin. See dreamhomefund.com/financial-education for details and the lender-enrollment notification list.
Gift funds for the borrower's down payment, closing costs, or reserves are permissible subject to the underwriting guidelines of the first-mortgage lender, the applicable GSE, and the borrower's mortgage insurer or guarantor. Dream Home Fund does not impose independent gift restrictions.
Borrowers must qualify under the prudent underwriting credit standards of the first-mortgage lender, the applicable GSE, and the borrower's mortgage insurer or guarantor. Dream Home Fund also applies its own minimum representative credit score and maximum total debt-to-income (DTI) tiers on the silent second; the more restrictive of the lender's standard and Dream Home Fund's standard governs. The Dream Simple tiers are: 640 representative credit, 40% maximum DTI; 680, 45%; and 700 or above, 50%. The minimum eligible representative credit score is 640.
Dream Home Fund does not currently impose a borrower income cap on the Dream Simple program. Borrowers must meet the income guidelines of the first-mortgage program.
The Lender is responsible for calculating and qualifying borrower income using applicable GSE, insurer, and Lender-specific guidelines. Dream Home Fund will rely on the Lender's credit-qualifying income for purposes of administering the silent second. Income not used by the Lender for credit qualifying will not be used by Dream Home Fund.
Dream Home Fund reserves the right to introduce income limits in the future as program funding and capital partner requirements evolve. Any change will be communicated to enrolled Lenders at least five (5) business days in advance.
Eligible properties must meet the requirements of the first-mortgage lender, the applicable GSE, and the borrower's mortgage insurer or guarantor. In addition, Dream Home Fund requires the following:
Dream Home Fund does not impose a maximum purchase price on the subject property.
The following Dream Home Fund loan documents must be executed by the borrower(s) and submitted by the Lender to Dream Home Fund at closing:
Dream Home Fund will provide the executed loan-document instruments to enrolled Lenders as part of the enrollment package.
All original Dream Home Fund DPA Notes delivered to Dream Home Fund must include an allonge endorsing the note to "Dream Home Fund, its successors and/or assigns" in a neat and legible manner. The endorser's name and title should be typed or stamped directly below the signature.
The Subordinate Deed of Trust must name all borrowers who are on the loan and on title to the subject property. A non-purchasing spouse may not be on the vesting of the Subordinate Deed of Trust.
Use of a Power of Attorney is permitted subject to the requirements of the first-mortgage lender, the applicable GSE, and applicable State law. The Lender shall apply the more restrictive standard of the first-mortgage program or applicable law.
Dream Home Fund must be named as an additional loss payee on the borrower's hazard insurance policy. The loss payee clause for Dream Home Fund silent second loans is:
Hazard insurance is required for the life of the silent second. The borrower shall maintain hazard insurance providing fire and extended coverage on a replacement cost basis. Policies must include a loss-payable endorsement to the first-mortgage lender and to Dream Home Fund as described above. The selected insurer must be licensed in the property's state and rated B/V or better in Best's Insurance Guide. Condominium and PUD insurance shall be in the form of a master or blanket policy for the entire project. Hazard insurance premiums shall be paid through the borrower's impound account maintained by the first-mortgage servicer.
For any property with improvements located in a Special Flood Hazard Area (SFHA) as delineated on flood maps issued by FEMA, flood insurance is required. Minimum coverage is the lower of (a) the replacement value of the structure improvements, (b) the maximum insurance available under the National Flood Insurance Program, or (c) 80% of the structure replacement cost. The maximum allowable deductible is $10,000 for a single family property. Flood insurance premiums shall be paid through the borrower's impound account.
Dream Home Fund does not require a Lender's Policy of Title Insurance on its silent second. However, Dream Home Fund strongly encourages the closing agent and the first-mortgage lender to confirm clear title and proper lien priority through the standard title commitment and preliminary title report ordered for the first mortgage. The Subordinate Deed of Trust shall be recorded in second position behind the first mortgage and ahead of any other DPA program, junior lien, or encumbrance.
Dream Home Fund does not currently require Mortgage Electronic Registration System (MERS) registration of its silent seconds. The Subordinate Deed of Trust shall be recorded directly with the applicable county recorder in Dream Home Fund's name. Dream Home Fund may, at its discretion, transition to MERS registration in the future; enrolled Lenders will be notified in advance.
Upon receipt of (i) the Notice of Commitment for the silent second, (ii) confirmation from the closing agent of the scheduled closing date and final settlement statement, and (iii) confirmation that the Subordinate Deed of Trust will be recorded in second position behind the first mortgage, Dream Home Fund will issue a Funding Authorization to the closing agent. The Funding Authorization confirms the amount of Dream Home Fund silent second proceeds to be wired to the closing agent and the $500 Program Administration Fee to be itemized on the borrower's Closing Disclosure.
Dream Home Fund silent second proceeds will be wired by Dream Home Fund directly to the closing agent's escrow account on the scheduled closing date, in accordance with wire instructions verified by Dream Home Fund. The Lender and closing agent are responsible for verifying wire instructions through an independent channel prior to disbursement to mitigate wire fraud risk. Dream Home Fund will not honor changes to wire instructions received via email alone without independent verification.
Within ten (10) business days of closing, the Lender or closing agent shall deliver to Dream Home Fund:
Upon receipt and review, Dream Home Fund will board the loan into its servicing records.
Dream Home Fund services its own silent seconds in-house. Borrowers do not make monthly payments on the silent second; servicing activity is limited to record-keeping, periodic borrower correspondence, issuance of payoff statements upon request, and processing of reconveyances at payoff. Payoff requests should be directed to payoffs@dreamhomefund.com. Other servicing and reconveyance requests should be directed to funding@dreamhomefund.com.
If the borrower's first mortgage becomes delinquent and a formal Notice of Default (NOD) is filed and recorded on the first mortgage (and not subsequently rescinded), the Dream Home Fund silent second becomes due and payable. The Lender or first-mortgage servicer is requested, but not required, to notify Dream Home Fund of any NOD filing against a Dream Home Fund-financed property.
Dream Home Fund does not charge a prepayment penalty. The borrower may pay the silent second in full or in part at any time before a triggering event.
Dream Home Fund will furnish a payoff statement within five (5) business days of a written request from the borrower, the borrower's authorized representative, or the closing agent handling a triggering transaction. Requests may be submitted to payoffs@dreamhomefund.com and shall include the borrower's name, property address, loan number (if known), and triggering event (sale, refinance, transfer, or other).
Upon receipt of the full payoff amount in good funds, Dream Home Fund will execute and deliver a Substitution of Trustee and Full Reconveyance (or equivalent instrument under applicable State law) to the closing agent or the borrower's title insurer for recording. Recording costs shall be borne by the borrower or the closing agent.
Dream Home Fund silent seconds are not assumable. Upon the sale, transfer, or assumption of the first mortgage to a new borrower, the Dream Home Fund silent second becomes due and payable in full and must be paid off as part of the transaction.
Dream Home Fund will subordinate its silent second behind a new first mortgage to allow the borrower to refinance on a rate-and-term basis. Subordination is not limited to a single refinance; Dream Home Fund will consider subordination on each qualifying rate-and-term refinance request. Cash-out refinances trigger mandatory payoff of the silent second and are not eligible for subordination.
The new first-mortgage lender shall submit a written re-subordination request to Dream Home Fund at partners@dreamhomefund.com at least fifteen (15) business days prior to the scheduled refinance closing. The request shall include:
Dream Home Fund will issue a Subordination Decision within five (5) business days of receiving a complete request. Approval is conditioned on the criteria in the applicable Program Handbook and confirmation that the silent second will remain in second lien position behind the new first mortgage. Upon approval, Dream Home Fund will execute and deliver a Subordination Agreement to the closing agent for recording in conjunction with the refinance.
Dream Home Fund does not charge a fee for rate-and-term subordination. Subordination is available on each qualifying rate-and-term refinance during the life of the silent second.
While Dream Home Fund will subordinate on rate-and-term refinances, the silent second continues to accrue simple interest while in place. Dream Home Fund encourages enrolled Lenders to counsel borrowers on the option of paying off the silent second at refinance, either from savings or by wrapping the balance into the new first mortgage, to stop further interest accrual. The decision is the borrower's; Dream Home Fund accommodates either path.
Dream Home Fund may identify a loan defect at any time, whether during initial review, post-closing audit, or in connection with a borrower inquiry, claim, or third-party investigation. Examples of loan defects include but are not limited to:
Upon identification of a loan defect, Dream Home Fund will provide written notice of defect to the Lender via email to the Lender's address of record. The notice will describe the defect, identify the supporting documentation requested for cure, and specify the cure period.
The Lender shall have sixty (60) days from the date of the notice of defect to cure the identified defect to Dream Home Fund's satisfaction, unless a different cure period is specified in the notice based on the nature or severity of the defect. The cure period may be extended in writing at Dream Home Fund's discretion upon a showing of good faith effort by the Lender.
If the Lender fails to cure a loan defect within the applicable cure period, or if the defect is not curable in its nature, Dream Home Fund may, at its discretion:
Repurchase is the standard remedy for defects involving fraud, material misrepresentation, lien position errors, or failures to comply with State or Federal Laws and Regulations. Indemnification may be accepted in lieu of repurchase for defects that do not impair the silent second's enforceability or value.
Dream Home Fund reserves the right to audit any loan funded under its programs at any time during the life of the loan and for three (3) years following payoff or other loan termination. Audits may be conducted by Dream Home Fund staff, by an authorized third-party audit firm, or in coordination with regulatory authorities.
Dream Home Fund will provide the Lender with at least thirty (30) days' written notice of a scheduled audit, except in cases of suspected fraud or material misrepresentation, where Dream Home Fund may conduct an immediate audit upon written notice. The Lender shall make available to Dream Home Fund or its authorized representatives:
Audit findings that identify a loan defect are subject to the cure and repurchase procedures in Section XII. All audits will be conducted in a manner that respects the borrower's privacy rights and complies with applicable privacy laws.
Each party shall maintain in confidence (i) all borrower-protected information received in connection with this program, in accordance with applicable privacy laws, and (ii) all non-public business, financial, operational, and technical information of the other party marked or reasonably understood to be confidential.
Confidential information may be used by the receiving party solely for the purpose of administering the Dream Home Fund DPA programs. Confidential information may not be disclosed to any third party except: (a) to the receiving party's employees, agents, contractors, and counsel on a need-to-know basis under equivalent confidentiality obligations; (b) as required by applicable law, regulation, court order, or subpoena; or (c) with the disclosing party's prior written consent.
The confidentiality obligations in this Section survive termination of the Lender's enrollment or the LPA for a period of three (3) years, except that obligations relating to borrower-protected information survive indefinitely.
All official notices between Dream Home Fund and the Lender shall be in writing and delivered:
Each party shall promptly notify the other in writing of any change to its address of record. Routine operational communications (loan submissions, status updates, determination notices, payoff requests, and similar) may be exchanged via email without the formalities of this Section.
Each Lender's enrollment under the LPA has an initial term of one (1) year from the effective date and automatically renews for successive one-year terms, subject to satisfactory completion of annual recertification under Section III.
Either party may terminate the LPA without cause upon thirty (30) days' prior written notice to the other party.
Dream Home Fund may terminate the LPA immediately upon written notice for cause, including but not limited to:
Termination of the LPA does not affect the validity or enforceability of any Dream Home Fund silent second already funded prior to the termination date. The Lender shall continue to comply with its post-closing obligations (boarding, audit cooperation, indemnification, confidentiality, and notice obligations) with respect to any such funded loans. New loan submissions will not be accepted from the Lender on or after the termination date.
Sections relating to indemnification (Section III), borrower fraud (Section III), confidentiality (Section XIV), loan defects and repurchase (Section XII), audit rights (Section XIII), and any other provision that by its nature should survive termination, shall survive termination of the LPA.
Neither Dream Home Fund nor the Lender shall be liable for any failure or delay in performance of its obligations under this Program Manual or the LPA to the extent such failure or delay is caused by events beyond its reasonable control, including but not limited to acts of God, natural disasters, fires, floods, earthquakes, pandemics, wars, civil disturbances, acts of terrorism, government orders or restrictions, labor disputes, or failures of public utilities, telecommunications, or internet infrastructure.
The party affected by a force majeure event shall notify the other party promptly upon becoming aware of the event and shall use commercially reasonable efforts to mitigate the impact and resume performance as soon as practicable. Force majeure does not excuse the payment of money due, the maintenance of required insurance coverage, or the obligation to protect borrower-confidential information.
Questions regarding this Program Manual, lender enrollment, loan submissions, servicing, payoffs, or any other program matter should be directed to:
This manual will be updated on a regular basis. Enrolled Lenders are responsible for monitoring program announcements distributed via email and posted at dreamhomefund.com.
Dream Home Fund is an Equal Housing Opportunity organization. Dream Home Fund DPA programs are open to all eligible borrowers regardless of religion, race, color, national origin, sex, disability, familial status, age, or marital status, in full compliance with the Fair Housing Act and the Equal Credit Opportunity Act.