FHA Loans with Down Payment Assistance
FHA does not provide loans; rather FHA loans are government insured loans made available to assist homeowners and home buyers in obtaining financing. FHA loans have more flexible credit guidelines compared to conventional home financing. In fact, FHA loans may allow homeowners to purchase a home with little or no money down. Standard FHA guidelines will allow for a 3.5% down payment and a 96.5% loan to value as opposed to conventional financing requiring 5-20% down payment.
To many, the Zero Down California™ Down payment assistance loan can mean the difference of renting or owning. Thousands of potential home buyers are well qualified and have more than enough income to qualify for an FHA loan. The only thing holding them back is a down payment.
Our program is simple. An FHA mortgage loan is 96.5% of the purchase price. Zero Down California ™ is a program that allows qualified borrowers to receive another 3.5% down payment loan for a total financed amount of 100 percent.
Unlike some other programs on the market, the Zero Down California ™ does not disqualify a person if there income is more than the median income for the county in which they live. We understand that California has many high cost areas, with high cost rents. As such, it can be very difficult to save for a down payment. The combined loan to value of the FHA loan along with the California Zero Down™ benefit cannot exceed the FHA maximum loan limit for the county in which the property is located. You will need to familiarize yourself with the maximum loan limits to ensure you can purchase within the limits.
Like the FHA loan, the participant on the Zero Down California™ program does not have to be a first time home buyer to qualify. We understand that everyone can use some help… and that’s why we’re here. When applying for a California FHA loan, it’s good to know that minimum credit scores to qualify for an FHA loan are typically 620; but some lenders with manual underwriting will allow for credit scores 580 and in some extenuating circumstances below 580. To be certain, you may complete the short form at the side and a representative experienced in FHA loans and the Zero Down California™ will contact you at a time convenient to you. There is never a cost to speak to a representative and it’s always a good idea to have someone explain your loan options prior to submitting a formal application.