Published January 13, 2021
Down Payment Assistance Info | Home Loan Info
We recently shared a video about downpayment assistance on our Instagram and we thought we'd share a bit more details about the most popular loan programs our buyers use here on our Blog. We hope you fin this info helpful.
The first program we are going to talk abut is CALHFA:
- This program offers two additional loans, one to cover your down payment, and the other to cover a portion of your closing costs.
- Using this program gives you an absolute max out of pocket for the loan of $5,000 - $5,500 which saves you $10,000 - $15,000.
- The additional loans do not require any monthly payments, you get to pay them off at your own pace. You pay what you want, whenever you want. Basically deferring your cost to later.
- Current interest rates are very low CHECK HERE. Currently today 1/13/2021 they are 2.875% for this loan.
- All you need to qualify for this program is a 660 credit score and to make less than $139,000 per year
The Next Most Popular Program is GSFA Platinum
- This program offers one additional loan that will cover your down payment and a small portion of the closing costs.
- This program does not cover as much as the CALHFA bringing you to a worst case scenario out of your pocket of more like $8,500 to $9,000
- The benefit of using this program though is that second loan is actually forgiven after being in your home for three years and making one time payments. So you NEVER pay it back!
- If the client is in the medical field, police department, fire department, or working for a credited school - this second loan becomes a true gift and has no three year year requirement.
- This option does require more money to close the loan initially, but you will actually spend quite a bit less over time since you do not have to pay the second loan back.
- Also requires a 660 credit score but has NO income limit.
- The interest rate for this program is currently 3.125% ( this was written 1/13/2021 so please check today's rates with a lender) which is still amazing.
VA Home Loan
- This loan is only available to Veterans and Active Duty, Reservists, Surviving spouses of military ( based on military entitlement)
- Requires no down payment ((ZERO))
- No monthly mortgage insurance premiums. Thus more purchase power for the buyer.
- Has flexible credit guidelines, 620 required
- Knowns as the easiest loan to qualify for. And very well deserved!
USDA Loan
- This loan has some income restrictions, but offers no required down payment ( Yup! Zero Down) and only applies to certain areas.
- USDA requires you to check by each individual address. Here is the site Click HERE
- Cities in kern County Eligible are Taft, Wasco, Arvin, McFarland, Tehachapi, Lake Isabella & Shafter
Please call me if you would like to chat more about your options!
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