If you are a 1st Time Home Buyer, you may be eligible for a 1% downpayment program in the state of California.
Here is how it works:
Example
$100,000 Sales price on an owner occupied home
$96,000 1st Mortgage: 30 year fixed FHA Mortgage
$3,000 Down Payment Loan = Deferred Loan (no monthly payment).It is an interest only loan and the interest is deferred until one the 3 events occur. This loan will need to be fully repaid if you refinance the 1st, sell the home or move out of your home.
$1,000 Down Payment
This program allows the seller to pay up to 6% of your closing costs, or all closing costs, whichever is less.
PROGRAM ELIGIBILITY
Am I eligible to apply for this program?
Review the guidelines below for both “Borrower” and “Property” Requirements to determine if you may be eligible to apply for the CHDAP program.
Borrower Requirements
- Be a first-time homebuyer
- Occupy the property as their primary residence, non-occupant co-borrowers are not allowed
- CalHFA borrowers must complete homebuyer education counseling and obtain a certificate of completion through an eligible homebuyer counseling organization.
- Your income must be less than the allowable CHDAP income limits.
- Meet the requirement of the lender and mortgage insurer / guarantor
*In the case of conflicting guidelines, the lender must follow the more restrictive.
Property Requirements
- Sales price of the home cannot exceed CalHFA's sales price limits established for the county in which the property is located
- Be a single-family, one-unit residence, including approved condominium/PUDs
*In the case of conflicting guidelines, the lender must follow the more restrictive.
Additional Property Guidelines
- Condominiums must meet the guidelines of the first mortgage
- Manufactured housing is not permitted
- There is a five acre maximum on the size of the property
- Leaseholds/Land Trusts and Co-ops are not permitted
- Meet the requirements of the mortgage insurer/guarantor
Please contact me regarding more information on this program offered by FHA and CalHFA (California Housing Finance Agency) www.calfha.ca.gov
Roger Farah
Bay Equity Home Loans
(707) 583-8107
NMLS: 508446
Notice: This is not a commitment to lend or extend credit. Restrictions may apply. Rates may not be available at time of application. Information and / or data are subject to change without notice. All loans are subject to credit approval. Not all loans or products are available in all states. Equal Housing Lender. Loans will be made or arranged pursuant to Department of Corporations California Finance Lenders Law License. Bay Equity LLC License #605-3919, NMLS ID#76988/ OR Branch License #238915.
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