While funds last, residents of California are eligible to qualify for a the FHA CHF ACCESS Down Payment Assistance loan that requires only 1/2% (one half) down payment. This is NOT limited to just first time home buyers and makes qualifying for an FHA home loan easier when buying in Temecula, Murrieta, Menifee, Lake Elsinore, Canyon Lake, Corona, Riverside, Moreno Valley & all of Riverside County.
How is this possible you ask?
FHA, which requires 3.5% down payment, allows a second mortgage from CHF ACCESS to satisfy 3.0% of the buyers down payment by using the Access 2nd down payment assistance loan. The 1st loan is a traditional FHA 30 year fixed at 96.5% LTV and the 2nd loan can be 3% of the purchase price….bringing the total loan to value to 99.5%.
Or, if you already have 3.5% down payment saved up, and the seller is not giving the buyer a seller credit to pay closing costs, the 3% funds can be used to pay for closing costs!
QUESTION: What will my payment be on the 2nd mortgage?
The 2nd loan is a 15 year fixed @ 8.25%. If you purchase a home for $250,000 your 2nd loan balance will be $7,500. Payment on a 15 year loan will only be $72.76/month!! If you don’t want to do that, go hit grandma or Vinnie the Butcher up for the down payment and see how that goes.
- NOT Limited to first time home buyers
- NO recapture tax/penalty if home is sold later
- NO Sales price limits
- NO minimum borrower contribution
- NO pre-pay penalties
- Gift funds are allowed from family members
- Seller contributions allowed up to 6%
- NO borrower reserves/assets required
- Minimum FICO score of 580 required
- Income limits are 120% of HUD AMI
- 2nd loan (CHF Access) is a 15 year fixed – no funny business on this loan
- 3% 2nd loan can be used for down payment or to pay closing costs
Below are the HUD qualifying income restrictions by California County:
(FHA ACCESS loan applicants can’t make more than this)
$84,480 Riverside & San Bernardino County
$101,040 Orange County
$84,480 Los Angeles County
$89,880 San Diego County
$105,720 Ventura County
$84,480 Kern County
$86,760 Santa Barbara County
$89.280 San Luis Obispo
$84,480 Imperial County
We are in a very unique time where interest rates are very low and home prices have dropped, making homes very affordable. There are thousands of buyers out there making offers on homes, use every program to your advantage. Don’t get stuck paying rent forever. This could be your opportunity to secure a nice home for you and your family. Call me at (951) 215-6119 to see if you qualify.