Sunday, March 27, 2011

More Great Ways To Buy Your First Home!

Wow, oh wow! More new loan ideas! Some make me cringe a little, but for now if it helps qualified (note I italicized qualified) people get into homes? I'm all for it.

So, really, a way to do 99% financing. Should last for several years. There's a lot of money floating around to make it happen.

It's the CalHFA/Chdap combo loan package. 1% down, truly only 1%, with 99% financing and the 2.5 % is basically never paid until the property is sold.

For first time buyers or if you haven't owned for the last 3 years. Low rates, check the CalHFA website for current rates. 4.75 at time of writing. Must have the same minimum FICO score of 620, as with almost all FHA loans.  The seller can pay up to 3% towards closing costs. You do have to pay MIP, mortgage insurance, as well.

The regular FHA loan of 96.5% is the first. Then the buyer puts up 1%, and borrows through the Chdap program 2.5% which doesn't require any payments until the home is sold, re-fied or the first is paid off. And that rate is currently 3.25%.

There is over $66 million in funds available for the Chdap 2nd. Check out the website link below to see how the money is going!


There certainly some restrictions to income levels. Must, of course, be owner occupied. But, yes, you can use a co-signer that isn't going to occupy the home. No manufactured homes, Flips create a bit of a problem. Forget homes that have non-permitted items, guest houses, or no stove. Won't work with this program.

You can use the Chdap program with other first loans also. There is a review of income for prior 3 years, mostly looking for the home ownership situation.

Seems a little crazy to give a home away to someone that only has 1% towards the purchase price. Seems like we did that a few years ago....? But, again, if they are qualified properly and really want to take advantage of great home prices, and just don't have a lot of money saved...this is a terrific option!

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