These three new loan products just came across my desk. I love how lenders are thinking outside the box, and using down payment assistance to help buyers get approved.
1. Common Sense Mortgage - A Return to Common-Sense Underwriting. With this loan, the lender does not check income or employment, and does not factor in any DTI. To qualify for the loan, they use credit, LTV (need at least 20% down) and reserves.
2. FHA 3.5% Forgivable Down Payment Assistance. Geared towards first-time homebuyers or first responders, medical professionals, civil servants, or educators. This Grant is a REAL Grant. This is NOT a Silent 2nd; nothing will be recorded on the title. It goes away when buyer refinances or sells.
3. 20% Down Payment Assistance. This loan is with the state of California's CalHFA program, and the 20% can be used for both down payment and closing costs. Loan is paid off when the borrower either refinances or sells the home.
Each of these loans has their pros and cons. Remember, we're dealing with lenders, and they don't offer any loan unless they can make a profit, Take a look at the details and as always, we're available for questions.
3 Amazing New Loans for Hard to Approve Buyers

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