How PALs Work: A Simple Explanation of Our Purchase Assistance Loan Model

A Purchase Assistance Loan (PAL) is a silent second mortgage — meaning it sits behind your primary mortgage and requires no monthly payment. No interest accrues for the first 3–5 years. When you sell, refinance, or reach the end of the term, you repay the original loan amount.

That repaid capital doesn't disappear. It goes back into the pool and funds the next eligible buyer. One dollar of program funding can help multiple families over time — making the model self-sustaining rather than dependent on continuous donor fundraising.

PALs can be up to 30% of the purchase price. For a $600,000 home, that's $180,000 — often the difference between qualifying and not. Combined with a conventional first mortgage, many middle-class families can achieve ownership they couldn't have accessed otherwise.

Participating families also complete mandatory personal finance training and open savings/investment accounts as part of the program. Ownership is the beginning, not the end.