 |
| Down Payment Grant Gift |
Orange County INCOME LIMITS GENERAL NUMBERS
FHA Max
$85,680 Riverside & San Bernardino
$102,360 Orange County
$85,680 Los Angeles County
$91,080 San Diego County
Compare CHDAP, CHFDAP ACCESS Down Payment Assistance Programs
– Which is Better?
Compare
CHDAP, CHFDAP, ACCESS Down Payment Assistance Programs – Which is Best?
Home buyer down payment assistance loan programs such as
CalHFA’s CHDAP, CHF DAP, and the CHF ACCESS
program are three of the most popular first time home buyer assistance programs
in California.
The CHDAP and ACCESS program all provide 3%
assistance that can be applied towards meeting FHA’s 3.5% minimum down
payment requirement.
CHF DAP gives grants gifts five percent
I offer all these mortgage loan programs but each is a little different
CalHFA’s CHDAP assistance, CHF’s DAP Grant,
and the CHF ACCESS assistance program will help you make better home
financing decision that impact you long after you move into the home.
|
CHDAP
|
CHFDAP
|
ACCESS
|
|
Assistance Amount
|
3% – sales price
|
5% – loan amount
|
3% – sale price
|
|
3% Assistance
|
Silent 2nd Loan
|
Grant
|
Loan Repaid
|
|
Qualifying Area
|
All California
|
All California
|
All California
|
|
Mandatory Origination fee?
|
0
|
1.5%
|
0
|
|
Credit to pay closing costs?
|
Up to 2%
|
Yes
|
Very Limited
|
|
DTI Ratio Max Limit
|
55%
|
50%
|
43% – 45%
|
|
Minimum Credit Score
|
640
|
620
|
580
|
|
First Time Buyer Only?
|
Yes
|
No
|
No
|
|
Income Caps? (county)
|
Yes
|
Yes
|
Yes
|
|
Income that Qualifies
|
Household
|
Borrower
|
Borrower
|
|
Max Loan Amount
|
$417+
|
$500
|
$417k+
|
|
90 Day Flips Allowed
|
Yes
|
Yes
|
Yes
|
|
Prepayment Penalty?
|
No
|
No
|
No
|
|
Max Seller Contribution?
|
3%
|
6%
|
6%
|
|
Gift Funds Allowed?
|
Yes
|
Yes
|
Yes
|
|
Cancellation Fee?
|
No
|
$400
|
No
|
|
|
|
|
|
$250,000 Purchase
|
Comparison
|
===========
|
========
|
|
Assistance Amount
|
$7,500
|
$12,500
|
$7,500
|
|
Down Payment Needed
|
.5% = $1,250
|
0
|
.5% = $1,250
|
|
Est. % Rate /apr (call for actual current rate)
|
3.875 / 4.962
|
4.5 / 5.413
|
4.5 / 5.183
|
|
Rate on 2nd lien
|
3.25% (deferred)
|
NA
|
8.25%
|
|
Mtg P&I Payments + MI
|
$1,405
|
$1,208
|
$1,567
|
|
|
|
|
Interest Rate: The interest rate comparison is
for a 30 year fixed, 660 FICO score, from a time when CHF published their
Platinum rate of 4.5%. Rates can vary, but for the most part, the Platinum and
ACCESS mortgage rate is .5% to .625% higher than a regular FHA loan. Rates change a couple times a day. This is not a rate quote. This is not a commitment to lend. These programs may be cancelled at any day at will. APR is listed above as second number
All assistance programs are subject to funding availability
CalHFA CHDAP Down Payment
Assistance Program
As you can see, the CalHFA CHDAP home buyer assistance program
typically offers you a much lower interest rate, payment, and is the least
expensive option between the three assistance programs. Some people say the
CalHFA’s CHDAP is the BEST down payment assistance program in all of
California.
CHFDAP Down Payment Assistance
Program
The CHF DAP program seems like it should be the
better program because the 5% grant never has to be repaid, right? CHF Platinum
charges an additional 1.5% up. Plus, the interest rate, on average, is .5%
higher than CHDAP assistance program.
In the $250,000 purchase scenario above, the CHFDAP assistance
program gives you $12,500. for the down payment (less than CHDAP or ACCESS),
then charges you a 1.5% fee ($3,618), AND you Just because you can use the
Platinum assistance program doesn’t mean you should, right? What do you think?
CHF ACCESS Down Payment
Assistance Program
The CHF ACCESS program offers the highest interest rate, reduces
how much you can qualify for but does cater to borrowers with lower credit
scores. However, since the assistance in the form of a 2nd loan (15 yr fxd)
that is actually a fully amortizing payment, you’re paying that 3% loan off and
building equity faster.
Can I Refinance Out of My Higher
Rate Platinum or ACCESS Loan in the future?
To qualify for an FHA streamline refinance, FHA has a 5% net
tangible benefit requirement test.
In five years (after having built enough equity to 80% assuming 3% gain in value per year - or if you have additional funds to pay the
loan down sooner) you may be able to refinance out of this this FHA assistance
loan and into a conventional loan. Of course your value could go down rather than up. There is no guarantee you will have income or credit to refinance at a later date.
The Platinum and ACCESS down payment assistance programs are great
for people who don't have a family member who can give them a gift or haven't saved enough money on their own, have lower
credit scores (but not always), and may feel the only way to purchase is to
accept a higher rate and fee home buyer assistance program.
If you can’t get your credit score to 640, or make more than the
CHDAP program income cap, you don’t have many options. That’s when Platinum and
ACCESS fill a void. I can help you raise your FICO score for free. Don't be urgent to buy with a low score. Call me to get some action paln to raise the score as it will affect your rate and long term payment.
THE
CONVENTIONAL LOAN PROGRAM IS MUCH BETTER BUT YOU NEED HIGHER FICO
5% Grant combined with Conventional loan
Income limit Orange County = $ 93,750 or $7793 monthly
FICO score needed 660
Using 43% debt to income ratio as a target
Individuals will have a variety of parameters, FICO, debts, =
many factors to
count into qualifying but these are some general numbers
$7793 X 43% = $3351 PITI target
$480000 sales price
$456000 loan
p and I $ 2310
Mi 380
Tax 490
Insur. 80
Total $3260 They could not have any bills with a $
480000 loan
Seller pays some of closing costs? OR buyer needs about $4000 to
close
***
$7000 month income X 43% = $3010 target
$400000 sales price
$380000 loan
P and I $1925
Tax 416
MI 310
Insur 79
TOTAL $
2730 - 3010 they could have $280 in
monthly other bills
Seller pays some closing costs or Buyer needs about $ 3800 to
close
***
$6500 month income X 43% = $2795
$375000 sales price
$ 356250 loan
P and I $ 1805
Tax 390
MI 290
Insur 77
TOTAL $ 2562 - $2795 the
could have $ 233 in monthly other bills
O.K you made it through all those numbers. I know it sounds confusing. Just call me and we can talk about your scenario. Everyone is unique.
Below are some fun pictures I took with my iphone at MIT with my son as your reward for reading.
