Almost no money down, literally? Yes, it’s true, and there are only a few places that can offer this program. What I’m talking about is the CHF Platinum Program (some companies have decided to rename it their own name to make it seem like something special only they can do for you, such as the Return to Homeownership Program and others like that, but they are all the same thing). However there are still only a handful of local lenders that can offer this program. Just know that if you hear/see something that sounds just like this but has a different name than Platinum Program, it’s probably the same thing.
This is such a great program and, as opposed to many Down Payment Assistance programs from agencies like SHRA and CalHFA, this grant is not only for the first time homebuyer, people not buying their first home can qualify, and is actually a grant. Not a 2nd mortgage that needs to be paid back over time or when the house is sold. This is true FREE grant money.
Of course there are some rules and not every buyer or property will qualify. However the vast majority of you that want to buy a home in this market should fit in under the guidelines.
Some of the pertinent features of the loan are:
- The loan can be a 30 year fixed FHA or VA loan ONLY.
- The grant is 3% of the total loan amount and the proceeds can be used for down payment, closing costs, prepaid items (taxes, insurance), and even earnest money.
- The 3% grant is not a loan or second mortgage and does not need to be included in the loan calculations
- No monthly payment: Since it’s not a loan there is no monthly payments and the grant does not have to be paid back
As far as eligibility, here you go…
- Income limits (Sacramento, El Dorado, Placer counties $90,120)
- Buyer does not have to be a 1st time homebuyer
- Owner occupied primary residence in California
- Single Family Residences, FHA approved Condos, Planned Unit Developments (PUD’s) are OK
And here is what is NOT allowed:
- 2-4 Units
- Rental Homes
- Investment Properties
- Recreational, vacation, or second homes
- Manufactured Housing
- Underwritten by our Innerwork Mortgage (FIMC) Underwriting Staff
- Run through FNMA Desktop Originator Automated Underwriting
- Minimum FICO score of 640
- Seller paid closing costs up to 6% to cover normal and customary fees is allowed
Please let me know if you have any questions about the Platinum Program. It’s not going to be the perfect fit for everyone, but will be for a lot of people and will not be around forever!