Kirk M West's Blog

The California Housing Finance Agency recently lifted the suspension of their down payment assistance loan. Here are the details. Pay attention to the credit score requirements. Stricter credit scores are now required but this is still a great opportunity for many. 

(CHDAP = California Housing Finance Assistance Program)

The CHDAP provides a deferred-payment junior loan – up to 3% of the purchase price, or appraised value, whichever is less – to qualified borrowers to be used for their down payment or closing costs. The junior loan will not carry a monthly payment but will accrue interest at 3% per year. The loan will be due and payable at the time of a refinance or sale of the property.

Qualifications are below.

Must:

- Be a 1st time homebuyer

- Have a combined household income in Sacramento County LESS than $61,150 (1person); $69,900 (2persons, children included); $78,600 (3persons); $87,350 (4 persons)

- Have a purchase price under $506,000

- be CA and US resident

- be purchasing a SFR or condo

- be using an approved lender and also an approved loan officer ( I am licensed to provide this program)

- attend a qualified Homebuyer’s Education Course. This is typically an 8 hour course and a fee of less than $100 typically applies.

- Allow for an additional 15 days in escrow due to the State of California turn times

- Your credit score must be 720 with a 51 to 55% DTI; 700 with 46 to 50% DTI (means a lower purchase price) ; 680 with <= 45% DTI

Email kirk@kirkmwest.com for more information on this program and to see if you or your client qualifies.   Ask me about my FREE Credit Repair WORKshop.