DOWN PAYMENT ASSISTANCE IS VERY POPULAR IN ROSEVILLE, CALIFORNIA. Moderate Income Buyers can now receive Down Payment Assistance for their Home Purchases using FHA Financing through VITEK Mortgage Group. Saving funds for a down payment has always been a challenge and this can delay a buyer’s ability to qualify for a new home mortgage while interest rates and prices are still low.
FHA Home Loans require a 3.5% down payment. These funds must come from the buyer’s funds, a gift from a Relative, a loan or withdrawal from the buyers 401K or other retirement account, or from an approved “Down Payment Assistance Program”.
Currently there are TWO active options for this assistance. These down payment programs are both 2nd loans for up to 3% of the required down payment, with the borrower providing the remaining ½% down. Both options are subject to county limits for income and purchase price. Current income ceiling for family of 4 in Placer County is $86,350 with the maximum purchase price limit at $528,607. These limits are the same in Sacramento County.
First Option: CHDAP for First Time Buyers. (California Homebuyer’s Down-Payment Assistance
Program) Highlights of the program include Deferred Payment 30 Year Fixed Interest Rate with no payment due until sale or payoff of first loan. Must be owner-occupied and requires that you have not owned a primary residence for the past 3 years. Homebuyer Education Course takes about one hour and must be completed on-line prior to close of escrow.
Second Option: ACCESS Program. Highlights include 15 year Fixed 2nd loan with monthly payments required. No First-Time Buyer requirements, must be Owner Occupied and Homebuyer Education Course is only required if no prior history of renting. The ACCESS program has a higher interest rate when compared to CHDAP Program.
With the help of the CHDAP or ACCESS down payment assistance program, and a seller willing to help with the buyers closing costs, a Qualified Homebuyer can purchase a home and close escrow with as little as ½% total cash to close. Even the ½% can be a gift from a Relative. So What Are You Waiting For? Time to go out and buy a house today!
