Yes, you heard that right. With the CHF Access Loan program, San Diego homebuyers can purchase a home with 1/2% down.
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 program is outlined as follows:
- FICO score of 620.
- FHA Loans (.5% down). FHA Loan combined with CHF Access down payment assistance program.
- The first loan is 96.5% and the 2nd Loan is 3% of the purchase price (Piggy Back Loan).
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).
There hasn’t been a program like this since the mortgage industry collapsed a few years ago. I recommend all San Diego first time home buyer use this loan. It’s a great product!
If you need a Realtor and interested in this program, contact Joseph Dodge at 888.242.9040.