No. Standard DPA (up to $10,000) guidelines require you to live in your home as your primary residence, making no changes to the first lien neither note nor transfer title for the full ten year term for it to be forgiven. Even if you sell your house nine years after closing, you still have to pay back the full Standard DPA loan amount. There is no “stair-stepping” in which portions are forgiven after periods of time. Forgiveness of a Standard DPA loan occurs only after ten years. Remember that it’s at 0% interest, so all that is ever paid back to AFHC is the amount of DPA obtained to purchase your home. There are no penalties or fees charged.

Shared Equity DPA (up to $40,000) is a loan that is never is never forgiven that must be paid back at the end of 30 years if you remain the in the home as your primary residence, make no changes to the first-lien note and you do not transfer title. Prior to the 30-year affordability period on the Promissory Note and Deed of Trust, should you sell the property, make changes to the first lien note, transfer title, etc… you will also owe AFHC a percentage of the properties equity if your house has grown in value during the time you lived in it.