Employer Mortgage Assistance Program
Frequently Asked Questions
Is this a second mortgage and what are the terms?
Yes, it is a second mortgage. You can borrow anywhere from $600 - $6,000 for a term of 60 months at a rate of 2%.
How do I apply? How do I repay the EMAP Loan?
Contact a Participating Lender. You pay the loan back to your lender in the same way as you would your first mortgage loan. If you qualify for SDHDA’s First-time Homebuyer Program, you only make one payment to your lender for both the first mortgage and the EMAP Loan.
What do I need to do to qualify?
You simply contact your employer for an “Eligibility Certificate”. Then take this certificate to an SDHDA Participating Lender.
Can I have the payments deducted automatically from my paycheck?
No. However, you can have your payment automatically deducted from your checking or savings account once your payroll check has been deposited.
What if I want to leave my employer before the 60 months is up?
One of the forms that you will sign at your loan closing is an “Addendum to the Promissory Note” that states that if you cease to be employed with your employer, the interest rate will be increased from 2% to the Prime Rate plus five percent.
Are there any other criteria to qualify for the EMAP Program?
I f you qualify for SDHDA’s First-time Homebuyer Program, there are purchase price and income limits that apply. However, if you do not qualify for that loan program, or if you are a prior homeowner, then only income limits apply.
What happens if I sell my home?
You simply pay your lender back, for the EMAP Loan, from your net proceeds of the sale.
Do mobile homes qualify?
No. Unfortunately, only those homes that qualify under SDHDA’s First-time Homebuyer Program are eligible.
Is there a prepayment penalty?
No. There is no prepayment penalty with the EMAP Loan.
