WHAT IS IT? The California Homebuyer’s Downpayment Assistance Program (CHDAP) provides a deferred-payment junior loan – up to 3% of the purchase price, or appraised value, whichever is less – to qualified borrowers to be used for their down payment or closing costs. Specifically qualified and eligible – you must meet a moderate income standard as well as qualify for the first loan. The borrower must be a first-time homebuyer purchasing a primary residence intended for owner-occupancy. You can be considered a first-time homebuyer if you have not owned and occupied a home in the past three (3) years. In addition there are sales price limits by county as well as limits as to what kind of first mortgage can be used, so be sure and find a lender who’s very familiar with this state program.
But what it really means is that, for some eligible and qualified buyers, you can buy a home with only .5% of the purchase price down. Oh it’s not 2007, you’ll still need funds for closing costs or get the seller to pay some of them and that’s not so easy anymore. In fact you have to contribute 3% of the sales price from your own funds, BUT motivated buyers who have saved some money can now compete for Short Sale and REO properties because even with limited resources, the CHDAP means you don’t have to ask for seller concessions. It can make your offer look just a little bit better. YEA.
Find more about CHDAP at http://www.calhfa.ca.gov/homebuyer/programs/chdap.htm
Still wondering??? Call me.