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For properties acquired with NSP funds and sold to a qualifying household , the buyer household wi44 must contribute $ 500 . 00 to the purchase of the home and must obtain a principal mortgage from a financial institution , while the local government will provide the purchasing household with a second mortgage . The second mortgage willbe for an amount that reflects the difference between the purchase price less the $ 500 . 00 buyer contribution and the principal mortgage amount . The second mortgage shall be in the form of a zero interest Deferred Payment Loan (DPL) . The DPL will remain in place for a fifteen ( 15 ) year term and will be due and payable at the transfer of ownership of the property , if the transfer of ownership occurs during the fifteen ( 15 ) year period . The Second mortgage will be limited to the following : ® A r, amount not need one half o f Ldr� c � ir. payment required by t � o t6 2�{ cc��rrvt— crv-vozr�u�rrrcrr�rcci-crrr�-ci—vy—cn�. eon��ventie first - ai tgage lender—ene and -three -q t� 5 -14 ) of the sales priee of the preper-ty , whiehever is less-. ® An amount not to exceed ten percent ( 10 % ) of the sales price of the property for closing cost assistance . This closing cost assistance may be used to pay the buyer ' s recording fees , intangible taxes , stamps on the note , mortgage title insurance , wood destroying organism inspections , appraisal fees , property survey fees , credit reports , lender ' s document preparation fees , underwriting fees , closing attorney ' s settlement fees , buyer ' s courier fees , prepaid property taxes , prepaid homeowner ' s insurance , prepaid flood insurance , and any other fees included on the Department of Housing and Urban Development (HUD) closing statement for the property agreeable to both the buyer and the seller . ® An amount equal to the difference between the sales price of the property less a $ 500 . 00 required buyer contribution and the amount a mortgage lender selected by the buyer and approved by the County has committed to loan to the buyer for the purchase of the property through a thirty ( 30 ) year fixed rate conventional first mortgage utilizing the property being acquired as collateral . The amount of the Gap Financing Assistance may not exceed an amount equal to thirty - five percent ( 35 % ) of the sales price of the property . 5 . HOMEOWNERSHIP ASSISTANCE Indian River County will utilize NSP funding to assist with closing cost assistance . All NSP funds utilized as closing cost assistance will be secured by a second mortgage on the residence . The second mortgage shall be in the form of a zero interest Deferred Payment Loan (DPL) . The DPL will remain in place for a fifteen ( 15 ) year term and will be due and payable at the transfer of ownership of the property , if the transfer of ownership occurs during the fifteen ( 15 ) year period . The Deferred Payment Loan will be recorded as a second mortgage on the property . 13