{"id":4076,"date":"2018-10-18T21:41:41","date_gmt":"2018-10-18T21:41:41","guid":{"rendered":"https:\/\/www.michaeladeery.com\/blog\/?p=4076"},"modified":"2018-10-20T00:31:34","modified_gmt":"2018-10-20T00:31:34","slug":"buy-a-home-with-zero-down-and-no-closing-costs-with-a-conventional-calhfa-loan","status":"publish","type":"post","link":"https:\/\/www.michaeladeery.com\/blog\/buy-a-home-with-zero-down-and-no-closing-costs-with-a-conventional-calhfa-loan\/","title":{"rendered":"Buy a Home With Zero Down and No Closing Costs With a Conventional CalHFA Loan!"},"content":{"rendered":"<p>The #1 reason buyers state for not being able to buy a home is lack of funds for the down payment. We have a terrific program available to help buyers purchase a home with a 3% down Conventional loan combined with a CalHFA loan, which covers the down payment and ALL the closing costs. This program is available up to a purchase price of $705,000 in some counties. Check out how to qualify.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone \" src=\"https:\/\/staticapp.icpsc.com\/icp\/loadimage.php\/mogile\/545159\/e53fbd357d38e212cac6cb337a020408\/image\/jpeg\" width=\"173\" height=\"213\" \/><\/p>\n<p><span style=\"color: #ff0000;\"><strong>Down Payment and Closing Cost Assistance For First Time Buyers<\/strong><\/span><strong>\u00a0<\/strong><\/p>\n<p>Not enough buyers know there are programs available to help them with the down payment and closing costs.<\/p>\n<p><strong>CalHFA<\/strong>\u00a0(California Housing Finance Agency) offers a down payment and closing cost assistance loan program to help first time buyers purchase a home. <strong>A first time buyer is defined as someone who has not owned a home in 3 years.<\/strong><\/p>\n<p><strong>This program is available with both conventional and FHA financing.<\/strong> CalHFA gives buyers a small 2<sup>nd<\/sup> mortgage up to 3.5% to help cover the minimum down payment due with conventional and FHA financing.<\/p>\n<p>If buyers don\u2019t have enough funds for their closing costs, <strong>CalHFA will give buyers an additional small 3rd mortgage of either 3% or 4% to help cover all their closing costs.<\/strong> \u00a0Many buyers using this program only have to pay the upfront appraisal fee out of pocket.<\/p>\n<p>Payments on the CalHFA 2<sup>nd<\/sup> or 3<sup>rd<\/sup> mortgage loans are deferred for the life of the first mortgage. The terms are the same as the first mortgage. <strong>There are no payments due unless you sell or refinance. <\/strong><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone \" src=\"https:\/\/staticapp.icpsc.com\/icp\/loadimage.php\/mogile\/545159\/237f704f368eec0977056a2f37835b7f\/image\/jpeg\" width=\"182\" height=\"196\" \/><\/p>\n<p><span style=\"color: #ff0000;\"><strong>How to Purchase a $450k Home With Zero Down and No Closing Costs<\/strong><\/span><strong>\u00a0<\/strong><\/p>\n<p>Check out this example of a $450,000 purchase we helped fund recently for a client. The buyer qualified for a 3% down conventional loan. They received a 3% CalHFA 2<sup>nd<\/sup> mortgage to cover the 3% down payment.<\/p>\n<p>They received an additional CalHFA 3<sup>rd<\/sup> mortgage of 3% to help cover all their closing costs.<\/p>\n<p>The buyers were able to purchase a home they loved, and the only fee due out of pocket was the upfront appraisal fee.<\/p>\n<p><strong>Here is a summary of the loan terms.<\/strong><\/p>\n<ul>\n<li><strong>Purchase price $450k.<\/strong><\/li>\n<li><strong>3% minimum down payment required ($13,500).<\/strong><\/li>\n<li><strong>Buyer qualified for a 3% 2nd mortgage CalHFA loan to cover the 3% down payment.<\/strong><\/li>\n<li><strong>Buyer qualified for a 3% CalHFA 3rd mortgage to cover all the closing costs.<\/strong><\/li>\n<li><strong>hey got a rate of 5.75% on a conventional 30 year fixed, the monthly principal and interest payment is $2,534.<\/strong><\/li>\n<li><strong>Property taxes and homeowner\u2019s insurance were $533.<\/strong><\/li>\n<li><strong>The monthly mortgage insurance is $94.<\/strong><\/li>\n<li><strong>Their total monthly mortgage payment is $3,161.<\/strong><\/li>\n<li><strong>The appraisal fee was the only cost out of pocket to buy the home.<br \/>\n<\/strong><\/li>\n<\/ul>\n<p><span style=\"color: #ff0000;\"><strong>How to Purchase a $550k Home With Zero Down and No Closing Costs<br \/>\n<\/strong><\/span><\/p>\n<p>Here is another example of a purchase we recently funded for a client. With a purchase of $550k, this meant the loan amount borrowed was &gt;$453,100, so this required a jumbo loan. The minimum down payment for a FHA jumbo loan is 3.5%.<\/p>\n<p>The buyers received a 3.5% CalHFA 2<sup>nd<\/sup> mortgage to help cover the 3.5% down payment.<\/p>\n<p>They received an additional 3% CalHFA 3<sup>rd<\/sup> mortgage to help cover all their closing costs.<\/p>\n<p><strong>Here is a summary of the loan terms.<\/strong><\/p>\n<ul>\n<li><strong>Purchase price $550k.<\/strong><\/li>\n<li><strong>3.5% minimum down payment required ($19,250).<\/strong><\/li>\n<li><strong>Buyer qualified for a 3.5% 2nd mortgage CalHFA loan to help cover the 3.5% down payment.<\/strong><\/li>\n<li><strong>Buyer qualified for a 3% CalHFA 3rd mortgage to cover all the closing costs.<\/strong><\/li>\n<li><strong>They got a rate of 5.5% on a FHA 30 year fixed, the monthly principal and interest payment is $3,066.<\/strong><\/li>\n<li><strong>Property taxes and homeowner\u2019s insurance are $645.<\/strong><\/li>\n<li><strong>The monthly mortgage insurance was $375.<\/strong><\/li>\n<li><strong>Their total monthly mortgage payment was $4,086.<\/strong><\/li>\n<li><strong>The appraisal fee was the only cost out of pocket to buy the home.<\/strong><\/li>\n<\/ul>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone \" src=\"https:\/\/staticapp.icpsc.com\/icp\/loadimage.php\/mogile\/545159\/40a80e4c1741e978bf85f6b947e83591\/image\/jpeg\" width=\"121\" height=\"127\" \/><\/p>\n<p><strong><span style=\"color: #ff0000;\">Frequently Asked Questions on This Program<br \/>\n<\/span><\/strong><\/p>\n<p>Here are the most frequently asked questions that buyers and real estate agents have in regards to this program.<\/p>\n<p><span style=\"color: #ff0000;\"><strong>1.What is the maximum loan amount I can borrow?<\/strong><\/span><\/p>\n<p>You can borrow up to your county loan limit with this program. <strong>In San Diego, a buyer can finance a conventional or FHA jumbo loan up to $649,650, and $679,650 in Orange County and LA.<\/strong><\/p>\n<p><span style=\"color: #ff0000;\"><strong>2.What can I borrow up to with conventional financing?<\/strong><\/span><\/p>\n<p>If you need to finance up to $453,100 with conventional financing, the minumum down payment is 3%. You can get a maximum CalHFA 2nd mortgage loan for 3% to cover all of the 3% down payment.<\/p>\n<p>If you need to finance &gt;$453,100 with conventional, the minimum down payment is 5% for a conventional jumbo loan.\u00a0You can get a maximum CalHFA 2nd mortgage loan for a maximum of 3.5% which will be applied towards the 5% down payment, so now you just need to cover the remaining 1.5% down payment.<\/p>\n<p><span style=\"color: #ff0000;\"><strong>3.What can I borrow up to with FHA financing?<\/strong><\/span><\/p>\n<p>The minimum down payment with FHA is only 3.5% and this includes FHA jumbo financing. <strong>As you can borrow a 2nd mortgage loan from CalHFA for 3.5%, this will cover ALL of the down 3.5% down payment requirement with FHA.<\/strong><\/p>\n<p><span style=\"color: #ff0000;\"><strong>4.What credit score is required to qualify for this program?<\/strong><\/span><\/p>\n<p><strong>We only require a 640 credit score to qualify.<\/strong> Please note, the higher the credit score the lower the monthly mortgage insurance will be on the first mortgage loan loan.<\/p>\n<p><span style=\"color: #ff0000;\"><strong>5.<\/strong><strong>Is this program for first time buyers only?<\/strong><\/span><\/p>\n<p>This program is for first time buyers only. <strong>A first time buyer is defined as someone who has not owned a home in 3 years.<\/strong><\/p>\n<p><span style=\"color: #ff0000;\"><strong>6.Are there any payments due on the CalHFA 2nd or 3rd mortgage loans?<\/strong><\/span><\/p>\n<p>No, the payments are deferred for the life of the first mortgage. <strong>There are no payments due unless you sell or refinance. \u00a0<\/strong>The terms mirrors that of the 1<sup>st<\/sup> mortgage.<\/p>\n<p><span style=\"color: #ff0000;\"><strong>7.<\/strong><strong>If I can cover my own closing costs, do I get a lower rate on my mortgage?<\/strong><\/span><\/p>\n<p>Yes, if you only need a CalHFA 2nd mortgage loan to cover the down payment, but you can cover all your own closing costs, you can get a lower rate of 5.125% on the conventional 30 year fixed rate mortgage. Compare this to a rate of 5.75% if you need an additional 3% CalHFA 3rd mortgage loan to cover your closing costs.<\/p>\n<p><span style=\"color: #ff0000;\"><strong>8.Are co-signers allowed on this program?<\/strong><\/span><\/p>\n<p>Yes co-signers are allowed on this program.<\/p>\n<p><span style=\"color: #ff0000;\"><strong>9. Are there income limits for this program?<\/strong><\/span><\/p>\n<p>Yes there are income limits, but they are pretty high. \u00a0For example, the San Diego income limit is $157,000, Riverside and LA is $128,700, Orange county is $174,200. Each county has it\u2019s own county income limit. Contact me for more details if you need to know your county income limit.<\/p>\n<p><span style=\"color: #ff0000;\"><strong>10.Are there purchase price limits for this program?<\/strong><\/span><\/p>\n<p>The maximum purchase price for this program is $705k.<\/p>\n<p><span style=\"color: #ff0000;\"><strong>11.Can I use this program on 2nd homes or Investment Properties?<\/strong><\/span><\/p>\n<p>No, this program is for Primary Residences only.<\/p>\n<p><span style=\"color: #ff0000;\"><strong>12.Do condos also qualify for this program?<\/strong><\/span><\/p>\n<p>Yes, this program is for single-unit homes only. This includes single-family detached homes and single-family attached homes such as condominiums and town homes.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-medium\" src=\"https:\/\/staticapp.icpsc.com\/icp\/loadimage.php\/mogile\/545159\/ae578196bdcb8fe20843be98d0183f01\/image\/jpeg\" width=\"160\" height=\"144\" \/><\/p>\n<p><strong><span style=\"color: #ff0000;\">A Great Opportunity For Buyers<\/span><\/strong><\/p>\n<p>This program presents a great opportunity for buyers who want to purchase a home but don\u2019t have the full down payment saved up yet.\u00a0 There are also buyers who assume because they don&#8217;t have funds for closing costs, they cannot buy a home.<\/p>\n<p>This program will help take care of both of these issues and allow buyers to fulfill their dream of owning a home.\u00a0 Spread the word to your family and friends that this program is available to them too.<\/p>\n<p>Feel free to contact me directly at 858-442-2686 if you have any questions about this program or getting approved for financing.<\/p>\n<p>I look forward to chatting soon.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-medium\" src=\"https:\/\/www.michaeladeery.com\/newsletter\/images\/sign.jpg\" width=\"120\" height=\"62\" \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The #1 reason buyers state for not being able to buy a home is lack of funds for the down payment. We have a terrific program available to help buyers purchase a home with a 3% down Conventional loan combined with a CalHFA loan, which covers the down payment and ALL the closing costs. This [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[806,811],"tags":[809,808,807,810],"class_list":["post-4076","post","type-post","status-publish","format-standard","hentry","category-buy-a-home-with-zero-down-and-no-closing-costs-with-a-conventional-calhfa-loan","category-down-payment-assistance-programs-for-buyers","tag-buy-a-home-with-zero-down-and-conventional-and-calhfa-financing","tag-buy-a-home-with-zero-down-and-no-closing-costs","tag-buy-a-home-with-zero-down-and-no-closing-costs-with-a-conventional-calhfa-loan","tag-how-to-buy-a-home-with-zero-down-financing"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.michaeladeery.com\/blog\/wp-json\/wp\/v2\/posts\/4076","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.michaeladeery.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.michaeladeery.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.michaeladeery.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.michaeladeery.com\/blog\/wp-json\/wp\/v2\/comments?post=4076"}],"version-history":[{"count":15,"href":"https:\/\/www.michaeladeery.com\/blog\/wp-json\/wp\/v2\/posts\/4076\/revisions"}],"predecessor-version":[{"id":4093,"href":"https:\/\/www.michaeladeery.com\/blog\/wp-json\/wp\/v2\/posts\/4076\/revisions\/4093"}],"wp:attachment":[{"href":"https:\/\/www.michaeladeery.com\/blog\/wp-json\/wp\/v2\/media?parent=4076"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.michaeladeery.com\/blog\/wp-json\/wp\/v2\/categories?post=4076"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.michaeladeery.com\/blog\/wp-json\/wp\/v2\/tags?post=4076"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}