Down Payment Assistance

Down Payment Assistance Program-  CHDAP Enables California Home Buyers to Purchase a House

Down payment assistance is often needed when home buyers can qualify for a loan but they do not have the money on hand that totals the difference between the loan amount and the purchase price.

In California, down payment assistance is provided by the State of California through the CHDAP Program (California Homebuyer’s Downpayment Assistance Program). A down pyment is the initial upfront portion of the total amount due when buying a home.  It is usually given in cash at the time of finalizing the transaction or the close of escrow. It’s basically the difference in the amount of the purchase price of a home and the actual loan amount.

down payment assistanceEligible first time home buyers may purchase a home with a down payment as low as one half of one percent of the purchase price (.05%).  They can do this by qualifying for the California Homebuyer’s Downpayment Assistance Program (CHDAP). By using the CHDAP program, they can reduce the down payment from the 3.5 percent required in FHA transaction, or the 5-20 percent down payment required in conventional financing.

The CHDAP Program is a junior loan with a simple interest and deferred payment. The CHDAP loans are available to eligible home buyer’s in an amount up to 3% of the sales sales price or the appraised value of the property- whichever is less.

Highlight’s of CHDAP- California Homebuyer’s Downpayment Assistance Program

1- Available to eligible first time homebuyer’s

2- Homebuyer’s must meet credit, income, and loan requirements of CalHFA, their CalHFA lender, and the mortgage insurer/guarantor

3- The CHDAP loan may be used toward the home buyer’s down payment or closing costs associated with eligible CalHFA loans or approved non-CalHFA first mortgage loans.

4- Homebuyer must take and complete a homebuyer education course and receive a homebuyer education counseling certificate.

Ask your loan officer or submit your information online and a qualified loan officer experienced with down payment assistance programs will contact you as soon as possible.

 

CHDAP