The myth has been busted! It's true! The 1% Down Payment FHA purchase with a 580 FICO is real. By Steven @ MonumentFin.com
Achieve the dream of homeownership in California with an FHA Down Payment Assistance Mortgage! By combining a 96.5% FHA 30 year fixed mortgage with a 3% Down Payment Assistance 2nd mortgage, a buyer can purchase with just 0.5% down payment! And it's not limited to any specific property! Buy any FHA eligible property throughout California!
$200,000 Purchase Price.
$193,000 FHA 1st Mortgage (96.5% LTV).$6,000 Down Payment Assistance 2nd (3% LTV).
$1,000 Down Payment Paid by Borrower (Just 1/2% of Purchase Price).
How? FHA Handbook guidelines allow non-profit charities to provide down payment assistance. FHA also set the minimum credit scores for maximum financing at 580. Most of the big banks don't want to take the risk, so they require 640 or higher credit scores. Our underwriting department sticks with the FHA Handbook guidelines and we've partnered with a non-profit to provide Down Payment Assistance.
Total funds needed to purchase equate to 1/2% of purchase price, plus ~$450 for an appraisal, and ~$400 for a home inspection. Seller may credit up to 6% toward closing costs. Additional funds may be needed for annual homeowners insurance premium or property tax installments, depending on time of year the escrow closes.
For more information, contact us at firstname.lastname@example.org Links:
HUD FHA Handbook Regarding Down Payment Assistance:http://www.fhaoutreach.gov/FHAHandbook/prod/infomap.asp?address=4155-1.5.B.4.jhttp://www.fhaoutreach.gov/FHAHandbook/prod/infomap.asp?address=4155-1.5.B.4.h
HUD FHA Handbook Regarding Credit Score Minimums:http://www.fhaoutreach.gov/FHAHandbook/prod/infomap.asp?address=4155-1.4.A.1.c