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Down Payment Program FAQ'S

Down Payment Protection FAQs

What is iServe +Plus Down Payment Protection?

+Plus Down payment protection is currently the only program that reimburses you up to your full down payment (up to 20%) should the market value decrease on your home and you sell at a loss.

What is the cost for +Plus Protection?

iServe Residential Lending, LLC provides +Plus Protection as a Lender Paid service. You will find that, typically, adding +Plus Protection will slightly increase your interest rate. It is not paid as a flat fee. Your Mortgage Banker will be happy to provide you estimates based on your mortgage with and without +Plus for comparison purposes.

How long am I covered with iServe Plus?

You are eligible to make a claim when you sell your home after occupying it for at least two years. Your coverage ends seven years after your home purchase date.

If I sell at a loss, will I get my full down payment back?

Coverage only applies where:

  • The sale price of the home is lower than the purchase price you paid for the home, and
  • The Federal Housing Finance Agency (FHFA) Home Price Index (the “HPI”) for your home’s State at the time of sale is lower than it was on the date you purchased the home.
    • You can find your State’s HPI at this website
    • Under the caption Datasets, click on Quarterly All-Transactions Indexes. In the chart titled All-Transactions Indexes (Estimated using Sales Prices and Appraisal Data), go to States (Not Seasonally Adjusted), and click on your preferred file format, [TXT] or [CSV].
  • Your pay-out would be the least of the amounts calculated below:
  • Your down-payment (up to 20% of home purchase price);
  • The actual equity you lost (which is the difference between the price you paid for your home and the price for which you sold it less any real estate commissions or other similar expenses); or
  • The purchase price of the home times the reduction in your State’s HPI.

    Examples of how this “lesser of” calculation works are provided below under How Does the Policy Payout?

    This policy will not cover:

  • Cost of improvements that you make to the home
  • Prepayments toward the loan balance
  • Real estate brokerage and other costs associated with the purchase or sale of the home

What is the maximum amount covered?

20% of your home purchase price or $200,000, whichever is less.

Am I required to protect my full down payment if I use +Plus?

No, you are able to protect as much as your down payment as you would like to, up to 20% of your purchase price or $200,000, whichever is less. For example, if you put 10% down on your $500,000 home, you could choose to protect the full $50,000 down payment or just a portion of that.

What types of properties are eligible?

Single-dwelling, residential homes that are occupied by the policy holder as their primary residence. Condos are eligible if occupied as a primary residence.

Can I use +Plus for a refinance?

Currently, we only offer the +Plus product on purchases of primary residences.

How is +Plus different from homeowner insurance or home warranty insurance?

+Plus covers your down payment. Homeowners insurance covers damages on your home and liability for injuries that may occur on your property, and home warranty insurance is typically limited in scope to covering major individual appliances and systems.

Examples of how this “lesser of” calculation works:

As an example, assume you buy a home for $100,000 and put 20% (or $20,000) down. In 5 years, you decide to sell. The table below shows how your pay-out would depend on the sale price and the change in the HPI. As the table shows, you could have:

  1. No pay-out if you sell at or above the price you paid for the home, or if the HPI for your state has not decreased. These two scenarios are shown with white shading in the table.
  2. A pay-out of less than your down payment if either the sale price or the HPI fell only modestly. Those scenarios appear in light green shading.
  3. A full refund of your down payment if the sale price and the HPI fell by at least 20%. Those scenarios appear in darker green shading.

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