Category Archives: FHA Programs

Zero Down California

Zero Down California™ is a newly available program that when combined with a standard FHA loan will provide 100 percent financing to California home buyers.   Zero Down California™ is available to qualified home buyers regardless of whether they have previously purchase a home.  In other words, it is not restricted to first time home buyers.

zero down californiaFHA loans are 96.5 financing, and the home buyer must come up with the remaining 3.5% down payment either via savings or as a gift from a relative.   Zero Down California™ will provide qualified homebuyers financing for the remaining 3.5%  down payment at a fixed rate for 30 years.

Because many home buyers can qualify for a loan and they are able to make the monthly payments, Zero Down California™ was created so a lack of down payment will no longer be an issue.  Unlike many other programs, the Zero Down CA does not disqualify applicants because they make too much money.  In fact, there are no maximum income limits with this new 100 percent financing program.

Home Buyers wanting the 100 percent financing program can find out more details or apply online at their website Zero Down California .  According to the site, Zero Down California makes it easier than ever to go from renter to homeowner.  “Since California rents are at an all time high, it’s often difficult to save the money needed for a large down payment while paying sky high rents.  But by offering loan programs that don’t require a down
payment, we help many people make the transition from renter to owner.”

The program is currently available to qualified buyers of single family properties (house, condo, townhome) located anywhere in California.  Underwriting guidelines and lender matrices are available to Brokers interesting in signing up and joining.  Real Estate agents may access marketing materials on the site as well.

Zero Down California Website

FHA Energy Efficient Mortgage Program (EEM)

FHA Energy Efficient Mortgage Program

FHA Energy Efficient Mortgage program (EEM) helps families save money on their utility bills by allowing home buyers and homeowners to finance energy efficient improvements with their FHA insured mortgage.

energy efficient mortgageThe Energy Efficient Mortgage program was created after recognizing that an energy-efficient home will have lower operating costs, making it more affordable for the homeowners.  Cost-effective energy improvements can lower utility bills and make more income available for the mortgage payment.

Creators of the FHA Energy Efficient Mortgage Program recognized that a reduction in utility expenses can permit a homeowner to pay a higher mortgage to cover the cost of the energy improvements on top of the approved mortgage.

Under its Energy efficient mortgage program, FHA Insures a borrower’s mortgage used to purchase or refinance a principal residence, and the cost of energy efficient improvements to be made to the home. The borrower does need to qualify for the loan amount used to purchase or refinance a home.  The borrower is not required to be qualified on the total loan amount with the portion of loan used to finance energy efficient improvements. Like all FHA insured mortgages, the loan is processed, approved, and funded by a lending institution, such as a mortgage company, bank, or savings and loan association.  FHA does not lend money, the Federal Housing Authority only insures the loans to protect the lender against loss in the event of payment default.

Energy Efficient Mortgages are one of many FHA programs that insure mortgage loans–and thus encourage lenders to make mortgage credit available to borrowers who would not otherwise qualify for conventional loans on affordable terms (such as first time homebuyers) and to residents of disadvantaged neighborhoods (where mortgages may be hard to get).

EEM can also be used with the FHA Section 203(k) rehabilitation program and generally follows that program’s financing guidelines. For energy efficient housing rehabilitation activities that do not also require buying or refinancing the property, borrowers may also consider HUD’s Title I Home Improvement Loan program.



FHA Reverse Mortgage

FHA Reverse Mortgage

FHA Reverse Mortgage is a loan specially designed for homeowners 62 years and older.  The FHA reverse mortgage is also referred to as a home equity conversion mortgage (HECM).  The HECM mortgages are insured by FHA (Federal Housing Administration) so the loans are guaranteed by the government for the borrower’s assurance and protection.   With this type of loan, no monthly mortgage payments are required. The homeowner is allowed to use the equity in their home to obtain a loan that does not have to be paid back until the homeowner moves, sells, or passes away.   The homeowner is still responsible for their own property taxes and homeowners insurance.

FHA Reverse MortgageBecause of the amount of reverse mortgage loan defaults in previous years, new guidelines were imposed in April, 2015.  The new rules were created to prevent loan defaults and they require a borrower(s) to pass a financial assessment prior to being approved for their reverse mortgage.

The new financial assessment rule requires borrowers to demonstrate the ability to pay their property taxes and property insurance.  Previously, only the equity was reviewed but now, lenders review the borrower’s income, tax returns and credit reports to evaluate the ability of meeting their financial obligations.

If a homeowner fails to pass the assessment, he may still be eligible to receive a reverse mortgage.  It is possible to set aside money in an escrowed account in order to pay the property taxes and insurance.  In some cases, the money set aside will make the loan impractical, but some homeowners can do a partial set aside.

While the new FHA Reverse Mortgage guidelines make obtaining the loans a bit more difficult, they were created to ensure the homeowner has the financial capacity to remain in their home for the rest of their lives.

If you have additional questions about a reverse mortgage or if you would like to discuss your options, complete the quick app at the side of the page and a loan counselor will contact you for your free consultation.  You may also send us an email to

California FHA Loans

California FHA Loans

California FHA loans make it easier for homebuyers with little to no money down or those with less than perfect credit to purchase a new home. Typical FHA loans require a minimal down payment of 3.5% but when combined with various other home buyer programs it is possible to purchase with only 1% down or less.

California FHA LoansTHE Federal Hosing Authority (FHA) has been insuring loans since 1934.  By backing or insuring the loans, the FHA program allows lenders to provide mortgages with lower down payments, lower closing costs, and easier credit requirements.

There are California FHA loans available for borrowers that fall within a wide range of credit criteria including scores as low as 580 and home buyers who have experienced previous bankruptcies, foreclosures, or even short sales.  Alternative credit may be used for applicants that do not have established traditional credit.  Alternative credit may be in the form of utility bill history, proof of rental income, and private loan ledgers.  FHA loans are available for single family residences as well as condos, townhomes, and there are programs for mobile homes and manufactured homes.  There is an FHA loan program for home buyers purchasing a manufactured or mobile home on land and another for homebuyers purchasing a mobile or manufactured home in a park.

FHA Energy Efficient Mortgage Program allows California home buyers to finance the costs of making their new home more energy efficient.

Borrowers 62 years and above may take advantage of the reverse mortgage program for either tapping into their current home equity or purchasing a homes with a substantial down payment and no additional payments for as long as they live in the dwelling.   For additional information on California FHA loans, complete the short information form and a loan counselor will contact you to answer all of your questions.









California Housing Finance Agency