Meeting the press today, Clark referred to the difficulty first time home buyers experience saving up a down payment. While many first time home buyers qualify for a mortgage, they can't assemble funds required for their initial down payment.
During the first five years, no monthly interest or principal payments are required as long as the home remains the homebuyer's principal residence. After the first five years, homebuyers begin making monthly payments at then current interest rates. Homebuyers will repay the loan over the remaining 20 years, but may make extra payments or repay it in full at any time without penalty. The loan must be repaid in full when the home is sold or transferred to another owner. The maximum purchase price of a home that qualifies for the loan is $750,000.