It’s Back! Down Payment Assistance for Buyers!

breaking-newsCan you imagine buying a new home with little to nothing down? Don’t worry, this is not too good to be true, it’s a pure and simple government backed loan (FHA) with the help of our new Grant Program.

We have added this wonderful assistance program to our ever-growing arsenal of loan programs, and now I can finally spread the news! This Grant may help you take advantage of this very attractive real estate market and possibly be the difference in purchasing that home you have had your eyes on. But, with any program, it’s important to read the fine print to make sure this is something that will work for you.

Here are a few details:

  • You don’t need great credit. In fact, you are eligible with a 640 FICO score.
  • You don’t have to pay the grant back.
  • Grant can be used for down-payment, closing and pre-paid expenses.
  • You can get a grant of 3% or 5% (of the base loan amount).
  • This can be used for FHA or USDA 30 Year Fixed loans.
  • You DON’T have to be a first time home buyer!
  • Single Family Residence ONLY. No 2-4 unit properties or Manufactured Housing.
  • Typical closing costs and pre-paid expenses apply (pre-paid property taxes, insurance, etc.).

This is an “in-house” program created to improve homeownership opportunities for low-to-moderate income individuals and families in California. To be eligible for the Grant, you must buy a home that you will occupy as your primary residence. This is not for investors. The program is income sensitive so it cannot exceed 120% of your area median income (Here is a link to show you what the income limit is for your area). So, if you make less than 120% of your area median income, you may qualify for this assistance.

IMPORTANT: The rant is not a percentage of the purchase price, but instead, a percentage of the base loan amount. For example, let’s assume you want to purchase that dream house for $250,000 and FHA requires a 3.5% minimum down payment. You can apply for a 3% to a 5% grant to help you with down payment requirements and closing costs.

$250,000         Purchase Price

$8,750             3.5% Down Payment required by FHA ($250,000 X 3.5%)

$241,250         Base loan Amount to Finance

$12,062.50      Your Grant if you choose 5 percent  (5% X Base Loan Amount of $241,250)*

$7,237.50        Your Grant if you choose 3 percent  (3% X Base Loan Amount of $241,250)*

You can request a 3% or a 5% Grant. Depending upon the Grant amount you choose, it will affect the interest rate you will receive on the 1st mortgage. If you want more details on this program and other down payment assistance programs in Sacramento and California, don’t hesitate to call or email me.

SECRET WEAPON: We can couple this Grant with additional assistance. For example, we can piggy-back our Grant with the very popular CHDAP program, an additional 3% assistance giving you a total of 6% to 8% toward your purchase. Ask me for details and let’s get creative.

* Grant, CHDAP, and loan approval on the first FHA mortgage, are subject to individual circumstances and must meet all required FHA, Grant , and CHDAP underwriting criteria to qualify.


For More information please contact Dan Tharp @ 916-257-1470 or email Dan at

 The information contained in this training has been prepared and distributed for educational purposes only.  This training information shall not be construed as a guarantee of loan approval; All loans are subject to underwriter approval.

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