No Down Payment Saved? Buy with CHF Access
First Time Buyers
November 3rd, 2009
With CHF Access financing Homeownership may be just around the corner. The CHF Access program provides 99.5% fixed rate financing by blending a 96.5% FHA first mortgage with a 3% CHF Access second. This program is limited to a primary residence but is not limited to only first time buyers. Program highlights include;
- Just .05% (1/2%) minimum down payment.
- Down payment can be gifted from family member.
- No Prepayment penalty on 1st or 2nd mortgage.
- Not limited to first-time homebuyers.
- Eligible 2 years after a bankruptcy and 3 years after foreclosure.
- On-line homebuyer education required.
- Seller may contribute up to 6% towards buyer closing costs.
- Income limit of $66,840 in Shasta County.
- Use on FHA approved SFR, Condo, Manufactured Homes.
- Purchase price up to $417,000
Combine the CHF Access program with the proposed first-time homebuyer or move-up homebuyer tax credit being considered by congress and a purchase could look something like this;
- Purchase price $150,000
- Down payment $750 which can be gifted from family member.
- Seller contribution up to $9,000 towards your closing costs.
- First Mortgage of $144,750
- Second Mortgage of $4,500
- Refundable Tax Credit(Proposed, $8,000 first-time buyers, $6,500 for move-up buyers.)
In this scenario if buyer uses the proposed homebuyer tax credit to pay off 2nd mortgage (no pre-pay) and the seller contribution covers all buyer closing costs (which is very likely) the buyer is left with a net gain on the sale after receiving tax credit.. $8,000 – $750 down payment – $4,500 second mortgage = $2,750 in buyers pocket.
Keep in mind that this is just a sample scenario and exact figures are subject to your credit, the purchase agreement, passing of propossed tax credit and other factors. Contact us for a referral to a participating lenders.
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