NIFA's Homebuyer Assistance (HBA) Mortgage provides down payment and closing cost assistance. To qualify, the borrower must meet the same requirements as a First Home Mortgage including the income and purchase price limits and the first-time homebuyer requirement.

Under the HBA mortgage, down payment and closing cost assistance is provided by NIFA in an amount currently equal to 4.25% of the first mortgage amount. The borrower is required to execute a second mortgage for the amount of the assistance. The second mortgage bears no interest and repayment is required only if the borrower pays off the first mortgage prior to the expiration of 11 years. (The actual amount of the second mortgage that must be re-paid declines over time from year 1 to year 11.) The HBA mortgage is assumable under certain conditions.

The interest rate for the HBA Mortgage is generally higher than the First Home Mortgage.

Under the HBA mortgage, the borrower is required to contribute a minimum of $500 from his or her own funds or from gift funds.

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