February 20, 2010

Need Money to Pay Your Closing Costs? Try This ...

Ahh, the good old days … homes for sale were plentiful and buyers had no problem getting sellers to pony up 3 percent to cover their closing costs.

Wake up … its time to let go of the past!
Inventory is tight and multiple offers allow sellers to pick and choose the best deals. Cash is always king but when offers in this market involve financing, the cleaner the better.

That means buyers who aren’t asking for seller credits now have an advantage over those who are.

FHA buyers who have money saved for the 3.5 percent down but short cash to close may qualify for California’s CHDAP program. It offers up to 3 percent that can be used for closing costs. Here are some key features:

  • it’s a silent second so no monthly payment is required
  • the rate is 3.25 percent amortized over 30 years
  • must be a first time home buyer
  • only available for homes in California
  • buyer must have at least 3 percent of their own funds into the transaction (no gifts allowed)
  • need a 680 minimum FICO
  • max DTI is 45 percent
  • income and sales price limits apply
  • online homebuyer education required
  • the loan is payable when the home is sold or refinanced

Sounds pretty good doesn’t it. CLICK HERE to see the “sales limits” for California and CLICK HERE for the “income limits“.

Need more information … contact me.