Down Payment Assistance Program
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Have you been saving for a traditional down payment but find home values are increasing faster than you can save? There is a down payment assistance program just for you. With the NHF ACCESS down payment assistance program, it’s possible to borrow up to 99.5% of the purchase price and have your closing costs financed too. That means you only need 1/2 of one percent of the sales price.
The NHF ACCESS down payment assistance program uses an FHA 30 year fixed rate mortgage with a down payment assistance second fixed rate mortgage taht makes up the bulk of the normal FHA 3 1/2% down payment.
This program is not restricted to only California first time buyers, it is open to previously home owners as well.
Here’s an example of how the program works:
Sales Price $300,000
FHA 1st Mortgage -$289,500
NHF ACCESS 2nd Mortgage -$9,000
Needed Down Payment $1,500
And if your credit scores are high enough you can also finance your closing costs into the loan.
Think about the benefits of owning and these program highlights:
No to low out of pocket closing cost options – First time home buyers AND previous home owners accepted – Flexible common sense loan approval – Fixed rate – No balloon, no prepayment penalty – Government insured – Single family homes, PUD’s, FHA approved condos – Acceptable credit scores as low as 580 – APR 6.1308%
Compare your rent deposit with this down payment. For what you pay for rent…Why? Stop dreaming and see if you can own today! the NHF ACCESS Down Payment Assistance program may be the answer to your new home. See if you qualify for this down payment assistance program by completing the short form below.
NHF ACCESS Summary
This down payment assistance program is for families and individuals who can afford a mortgage loan but do not have the resources for the down payment and closing costs.
How did this program originate? In 1993, a group called the “Regional Council of Rural Counties or RCRC” (made up of 30 rural counties in CA) formed the California Rural Home Mortgage Finance Authority (CRHMFA) aka as Cal Rural to help increase homeownership opportunities. In 2002, CRHMFA sponsored the Homebuyers Fund, Inc., now known as CHF.
What is provided by the California Homebuyers Fund (CHF): CHF offers down payment assistance financing up to 99.50% designed to increase homeownership opportunities to low-to-moderate income individuals and families in California
The NHF ACCESS 2nd can be used to fulfill the borrower’s equity contribution required on a FHA 1st mortgage and is a 15 year fixed rate second that is fully amortizing with no prepayment penalty
Use of CHF ACCESS Down Payment Assistance funds – Proceeds may be used for the down payment, closing costs, price adjustments or pay down up front mortgage insurance
Purchase of Owner-Occupied Primary Residences Only – No first time homebuyer requirement – You may own other properties but must meet FHA requirements
Types of Properties Allowed: Single family residences, PUD’s, FHA approved condos and 2 units with minimum 640 mid credit score
Cash Requirements: No minimum cash contribution required, no cash reserves required, gift funds, loans from 401K’s and IRA’s allowed
Credit Tidbits about the NHF ACCESS Down Payment Assistance Program: Minimum mid credit score is 580, the higher the credit score the more you qualify for and the better the interest rate, if your credit is high enough you can add your closing costs to the loan
Other Down Payment Assistance Tidbits: Homebuyer education required, no ‘Recapture Tax’ if the home is sold later, no sales price limits but limited by income and FHA loan limits, very liberal qualifying debt-to-income ratios