Well...perhaps happy days are here again if you are a buyer looking for 100% (zero down) financing in Sacramento, (and basically most of the state of California)?

A downpayment assistance program resurfaced last month. This is not a seller-funded downpayment assistance program a la Nehemiah or Ameridream - those are still banned per the provisions in HR 3221, and it does not look like seller-funded downpayment assistance will be coming back any time soon (no sooner than when HR 6694 passes, if it ever does).

I am pleased to talk about the National Homebuyer's Fund Program. I briefly mentioned this in a blog about first time buyer programs a couple weeks ago...

I am not a loan officer and do not know all of the nuances of this program, but I do know how some current clients of mine are using it to purchase a home in Fair Oaks. They are using an FHA loan for 92% of their purchase, and are getting a small second loan for 8% of their purchase. This is the first combo loan I have written into a purchase agreement in about 18 months.  The seller is paying $11,000 toward recurring and non-recurring closing costs. The buyer is only going to come out of pocket about $500 when it is all said and done. 

I attended the Real Estate Finance Forum this morning at the Sacramento Association of Realtors, and the CalPERS Program Home Loan representative from CitiMortgage mentioned this program as well! It apparently can be used for both purchase and refinance transactions. It is a "risk" based program and does not run out of money, like other bond-financed programs.

Contact me if you would like more info, and I can put you in touch with an approved loan officer who can evaluate your situation and see if this program is a fit.