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I am the author of this blog and also a top-producing Loan Officer and CEO of InstaMortgage Inc, the fastest-growing mortgage company in America. All the advice is based on my experience of helping thousands of homebuyers and homeowners. We are a mortgage company and will help you with all your mortgage needs. Unlike lead generation websites, we do not sell your information to multiple lenders or third-party companies.
By combining an FHA loan with California Homebuyers Downpayment Assistance Program (CHDAP), First Time Home Buyers in California can buy a home for as less as 0.5% downpayment.
Here’s how it works:
We do FHA Loan as the first mortgage of 96.5% Loan-to-Value Ratio (LTV) and combine that with 3% second mortgage provided as part of CHDAP.
CHDAP is a deferred payment second mortgage which becomes due in full when you refinance or sell the home. However, CHDAP may be resubordinated in some cases at the time of refinance and hence may not be required to pay in full.
Borrower Requirements for CHDAP
- Be a first-time homebuyer and occupy the property as your primary residence.
- Your income must be less than the allowable CHDAP income limits.
- Sales price of the home cannot exceed CalHFA’s sales price limits established for the county in which the property is located
Property Guidelines for CHDAP
- Be a single-family, one-unit residence, including approved condominium/PUDs
- 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
Other Qualification Requirements:
- 0.5% Downpayment can be gifted by parents, siblings or children.
- Maximum debt-to-income ratio of 43%
Note – CalHFA does not directly lend this money for downpayment assistance. You need to get the loan through an approved lender like us.
You may also like to read – Complete Guide to Qualifying for FHA Loans