The program is called NJHMFA state-wide Down Payment Assistance Program, link is below.  

Long term Non QM rates would be in that range (5-6% pre pandemic) but all of those programs are shut down until the secondary market for them comes back and they can navigate the loan servicing issues related to this disease/forbearance. 

We've encouraged him to apply for assistance programs (he was laid off from his part time gig) as well, to help close the gap. 

If so, I would recommend the Dream Program with Empower Federal Credit Union.

Pls listen to todays white house briefing for important info on emergency loan programs"//m.youtube.com/watch?

He could pay off the defaulted loan outright, but if he doesn't go through the rehabilitation program for 10 months then it will remain on his credit score/history. 

I’m trying to learn about specific loan programs available for owner occupied multi family properties.

I took the cheapest program available online and I passed my first try with ease.

If this was in the US and I was a principal in the transaction, and I had some interested contacts I knew, I would just form an LLC with those people and go through the Fannie Mae Small MF Loan program.

Thanks, Mr Kyle.Here is a link:HOMEOWNERSHIP VOUCHERSOverviewThe Housing Choice Voucher (HCV) homeownership program allows families that are assisted under the HCV program to use their voucher to buy a home and receive monthly assistance in meeting homeownership expenses.