For the first time home buyer who has good credit, good income but maybe short on available cash for a down payment or closing costs, there are  programs available to provide assistance, such as:

  • 100% financing
  • Grant Money (don’t have to pay this back)
  • Teachers – 3% & 17% loans
  • HomePath financing – 3% down on Fannie Mae REO Properties

100% Financing – USDA Loans

The USDA assistance program is based on the location or the property – mainly in “rural” areas, which may sound like far far away it really is not.  Homes in areas of Contra Costa & Alameda qualify for 100% mortgage financing, i.e.Livermore, Clayton, Oakley, Discovery Bay. Not all homes will qualify, so research by a  specific addresses is required. There are income limits and again this will depend on the County and size of household. Highlights:

  • Zero down payment
  • No mortgage insurance (which can add a couple hundred dollars to the monthly payment on a standard FHA loan)
  • Closing costs can come from any source – gift or seller contributions
  • No max loan
  • Not limited to first time buyer

Grant Money Mortgage Funding

The grant money funding is for first time home buyers whereby you can receive up to 3% of the loan amount to apply towards down payment or closing cost. The best part of this is you do not have to pay back the grant money. Thre are income limits and the max home loan is $417,000. In this market there are an abundance of homes available in the price range in Contra Costa County and Alameda County. Highlights of the Grant Money Program:

  • Max loan amount is $417,000
  • 620 Credit Score
  • No repayment of grant money
  • Owner occupied – single family homes, condos
  • Up to $12,510 available for down payment (based on loan amount)
  • Income limit based on size of family $75,000 to $108,000

Home Path Financing – Low Down Payment Mortgage –

The Home Path Financing program offered by Fannie Mae is as good as getting an FHA loan – only 3% down payment is required. This financing is limited to Fannie Mae owned properties. Best of all this program is available to both owner occupied purchasers and investors. Investor downpayment is 15%. Fannie Mae properties can be found in Contra Costa & Alameda Counties. Highlights:

  • 3% down payment – owner occupant
  • 15% down payment – investor
  • No Appraisal
  • No PMI
  • Fast closing
  • Special Bonus  thru the end of June 30, 2011 – the Seller will contribute 3% toward your closing costs

California Teachers Mortgage Program – 3% Down Special financing – 80/17 Program

The CalSTRS Home Loan program will help anyone who is a member of the California State Teacher’s Retirement System. The opportunity is that a borrower can get a 80% loan to value – with a 3% down payment for the first mortgage and a second mortgage for 17% which is deferred for up to 5 years. This program is for first time buyers only. Loan limits for a property vary from $417,000 to $505,612, Credit score of at least 620. A minimum of 1% for the down payment on the first mortgage must come from the borrowers funds. All other funds required to close such as closing costs can be a gift or a contribution from the seller. Highlights:

  • 3% down on first mortgage
  • 17% second note deferred for 5 years (no payments on second)
  • 30 year mortgage
  • Same interest rate for the 1st and 2nd mortgage
  • Loan limits up to $505,612
  • Credit score of 620 minimum
  • Member of STRS

With so many first time buyer mortgage assistance programs, low interest rates and great prices on properties, now maybe the best time to invest in your home.

About Linda Urbick Linda

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