With interest rates and home prices at historic lows, many individuals (previously forced from the market) are now grabbing for their slice of the American Dream… the dream of home ownership. The newly announced CHF Access down payment assistance program will make this dream a reality for thousands of California residents. This program works in concert with FHA’s (203b, 234c) federally guaranteed loans, which currently requires only a 3.5% down payment. Qualified California applicants will now be able to secure a 15 year 2nd mortgage for 3% of the sales price (which can be utilized for down payment and/or closing costs). This down payment assistance loan is being offered at a very low rate of interest (currently 8.25%). The other .5% may come in the form of a gift allowing for no down payment money out of pocket from the buyer.
In addition to qualifying under traditional FHA guidelines, applicants will also be required to prove that their income meets or exceeds 120% of the median income for the county in which they wish to buy a home. This unique program is being offered only through approved participating lenders and is sponsored by the California Rural Home Mortgage Finance Authority (CRHFMA Homebuyers Fund).
The new CHF ACCESS program addresses the often insurmountable challenge of saving money for a down payment and closing costs, while providing a mechanism in which to ease the pressures on the housing market and state economy as a whole. This program is a win-win for would-be home buyers and existing homeowners alike…it is a big win for California! At this writing I am unaware of when this program expires, but these programs are often limited by funding and administered on a first-come-first-served basis. My advice to interested potential homeowners is to get your application in as soon as possible and become pre-qualified. Other restriction may apply. Most loan agents do not charge to pre-qualify individuals for a home loan.
When you combine the federal $8,000 tax credit (which expires 12/1/2009) and the new CHF ACCESS down payment assistance program with FHA’s current loan programs, you have a recipe for success-in-home-ownership! For additional information about this exciting new program or to get started with the application process, feel free to contact me directly.
