Melinda Harleaux, Branch Manager of the Ladera Heights New American Funding Branch, discusses the down payment assistance programs you can take advantage of! Contact a loan officer today and see which programs fit your needs.
Hello my name is Melinda A Harleaux and I'm the branch manager out of the Ladera Heights office with New American Funding. The first program I'm going to talk about is called CalHFA. And CalHFA is designed to assist with the down payment as well as closing costs. Now whether you qualify will be based on your income limits, how many people that are in the household, as well as your FICO score. That program will allow you to come in with as little as 3% down or 5%, so literally you can get into a home with little to no money down. This program is offered in conventional and FHA financing. The maximum debt ratio for both is 45%, and again, you have to have a minimum FICO score of 640. So the next program I'm going to talk about is GAP financing. Now the most popular ones in California, at least for my area, would be Los Angeles city which offers 60,000, LA county that's 60,000, and Montebello that offers 55,000. And each one of these programs have their own nuances as far as the required investment that the borrower has to bring in, debt ratio, FICO score, and so forth. And then there's another program with the city of Compton. Compton allows 30% on the purchase price so that could help a client get in a completely different area, avoid mortgage insurance, and have a lower mortgage payment altogether. When you think of first time home buyer programs, you tend to think that you have to have low income to qualify but that's not the case. There's another program that's called SCHFA and that stands for Southern California Housing Authority. This program will allow you to purchase in LA county as well as Orange county and you can make over $100,000. The program allows for FHA and VA financing as well as USDA only. The minimum required FICO score is 640 on these programs and guess what, the money is free. You don't have to pay it back. So you can get up to 4% grant on these funds and literally if the seller pays your closing costs you can get in with no money down. The next program I'm going to talk about is Platinum program, it's a little bit different than the SCHFA program because it's available in all counties, and it's available for 1-4 units, so you literally can buy 4 units as long as you're going to live in a property. This program you do not have to be a first time home buyer, you just have to occupy the property. You can get up to a 5% grant on this program and its available for conventional and FHA, as well as USDA. The last and final program I am going to talk about is called mortgage credit certificate (MCC). Now an MCC is an extra 20% write off on your taxes so it's a dollar for dollar tax reduction and it allows us to use that income that you would get at the end of the year towards your qualification so it allows us to qualify you for more. There's no FICO score requirement there's no debt ratio requirement, the only requirement is that you have not had a property in the last 3 years. Important things to remember, each one of these programs has a maximum sales price as well as loan amount. Also these programs are subject to change so just make sure that you keep your preapproval updated at least every 90 days. Now the process of getting preapproved for any one of these programs is simple. All you do is fill out an online application, you provide one month of paycheck stubs, your last 3 years of 1040's and W2s, and 2 months recent bank statements, all pages. Once this information is provided we are able to tell you which program that you qualify for and how much. As a recap I just want to reiterate we have the CalHFA program that allows for down payment assistance as well as closing costs, we have the grant program sets free money that you don't have to come up with a down payment at all. We have GAP financing that helps you qualify for more and in some cases remove the mortgage insurance all together. And then lastly we have the MCC, mortgage credit certificate that will give you an extra 20% off of the mortgage interest for the life of the loan. I want to thank you for listening to this presentation, I know it was a lot of information to absorb, however that's what I'm here for. I'm here to help you. All you have to do is give me a call at 310-297-9098.
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