Greg Cowart on Zillow
Greg Cowart - Mortgage Broker or Lender at The Securus Group
Greg Cowart - Roseville Loan Guy

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Even lower down payments? A possible answer from Sacramento!

What do you think when I say “CHDAP”? Probably nothing and that’s totally normal if you’re not in the mortgage business (might even be normal if you are in the business but don’t pay attention). CHDAP used to be a way to get low and no down-payment loans… A super low rate simple interest second mortgage you don’t make payments on and don’t pay off till you sell or pay off your house used to cover all or part of down payment requirements or closing costs.

The CHDAP program was the baby of CalHFA, basically California’s own little FHA. A Sacramento-based quasi-government entity with the sole purpose of making a higher number of California’s population a homeowner. CalHFA’s programs covered a lot of ground and helped A LOT of Californians achieve home-ownership over the last decade plus. Then came our current recession and the pool of bond funds used to fund all of the most popular programs dried up and the programs went bye-bye. Including the CHDAP.

The good news came today, CHDAP is back! It’s going to take a couple days to evaluate the effect of the new version of CHDAP. All the details and guidelines will have to be hashed out over the next few days (and as usual of course you’ll hear about it HERE first) but it sounds promising. If the new CHDAP is like the previous CHDAP that went away at the end of 08′ we’ll be looking at a tool that will allow even lower down payments on FHA loans and/or help cover closing costs, helping Sacramento area home-buyers get into their new home with thousands less dollars out of pocket. A pretty big deal!

As always if you have any questions please don’t hesitate to call or e-mail. Until next time…

~Greg Cowart :: Roseville Loan Expert .Com

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