1 Percent Down Payment Mortgage California
Our 1 Percent Down Payment Mortgage is back and It’s Better Than Ever!
1 Percent Down Payment Mortgage California is perfectly designed as a conventional, community lending mortgage that offers underwriting flexibilities to qualified borrowers who meet specific income criteria or properties that meet geographic location eligibility criteria.
Purpose: Purchase and rate and term refinance owner occupied single family residence/condominium/2 unit properties for entry-level home buyers/owners.
Who is it for: Entry level home buyer is defined as a buyer who does not own a primary residence at time of closing. Entry-level home owner is defined as an existing owner of the primary residence owning no other properties.
Term: Fixed with a 30-year maturity.
Maximum Loan Amount: Conforming Limits for 1-2 units
• $417,000 1 Units
• $533,850 2 Units
Lending Areas: This program is available only in LBS assessment area for loans to the borrower’s primary residence and is subject to geographic, income, property, product and other restrictions in the following counties:
• Los Angeles • Orange • Santa Clara
• Sonoma • Alameda • San Francisco
• Marin • Contra Costa • San Mateo
Occupancy: Owner shall own and occupy as primary residence.
Prepayment Penalty: None
Minimum Borrower Contribution: 1% of Purchase Price.
Ownership of Property: Primary applicant may not own another residence at the time of closing.
Non-Occupying Borrowers: Non-occupying borrowers are permissible provided all sources of income relied upon for underwriting fall within the 160% of AMI (stated above).
New Down Payment Assistance Program
Product Summary: Designed as a down payment assistance program to fill in the gap for closing costs and monies needed for down payment and combines them via secondary financing. “Daisy”is only eligible with GROW (LBS first mortgage program and for purchase transaction only). This program is designed as a community lending mortgage offering underwriting flexibilities to qualified borrowers who meet specific income criteria or properties that meet geographic location eligibility criteria.
Purpose: A direct loan of a maximum of 2% of the purchase price for the purpose of down payment. Funds can only be used for down payment and third party closing costs.
A promissory note and deed of trust will be drawn, executed and recorded in secondary position.
Term: 36 months
This 1 Percent Down Payment Mortgage Requires NO Monthly Payment On the 2nd TD and Has A Debt Forgiveness Component.
Repayment & Forgiveness: This Note 2nd TD requires no regular payments. In addition, provided Borrower (i) has continuously occupied the Property as Borrower’s principal dwelling; (ii) has not sold or transferred the Property, and (iii) is not in default under any provision of this Note or the Deed of Trust, the principal balance of this Note 2nd TD will be forgiven in increments as follows: 25% after 12 full months; 25% after an additional 12 full months; and 50% after an additional 12 full months, resulting in full forgiveness after 36 months
Lien Position: Second trust deed–subordinations are allowed to state, city and government down payment assistance programs.
Maximum Loan Amount: $8,600 for 1 Unit; $11,000 for 2 Unit
Call us today at 424 225 2167 and get pre-approved for one of our many First Time Buyer Loan Programs California! One of our mortgage professionals will help you get the best possible loan solution for your situation. We’ll be with you every step of the process and not hand you off to someone else.