Is this actually a grant or a loan?

The funds are provided in the form of a forgivable loan. As long as borrowers comply with the terms and conditions of the program, their loan balance will be forgiven at 20% or $2,000 each year for five years. Borrowers will receive a 1099-form annually from the county for the forgiven amount as it is considered taxable income.

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1. Who is qualified to apply for the program?
2. What are the terms of the loan?
3. Is this actually a grant or a loan?
4. My client’s debt-to-income ratios are higher than the listed maximums. Why are you looking at debt-to-income ratios if the funds are a grant and not a traditional loan?
5. My borrower is also participating in the Affordable Dwelling Unit (ADU) Purchase program. Can they use the PEG program in conjunction with their home purchase?
6. My borrower will need more the maximum $10,000 to cover all closing costs and down payment. They qualify for the DPCC program as well. Can they use both programs?