Down Payment Assistance Programs

LOAN PURPOSE
  • Purchase Only
  • Primary Residence only
ELIGIBLE BORROWERS
  • U.S. citizens
  • Permanent Resident Aliens
  • Non-Permanent Resident Alients
FIRST TIME HOMEBUYER REQUIREMENT
  • Borrower need not be first time homebuyer. Follow FHA requirements if borrower already owns property.
  • Borrower can retain current residence as per FHA guidelines. A Letter of Explanation is required to explain the motivation to keep current residence while purchasing new residence.
INTEREST RATE
  • 1st lien: Fixed interest rate
  • 2nd lien:
    • Repayable: 2% higher than first mortgage
    • Forgivable: 0% rate
AMORTIZATION TERM
  • Fixed Rate – 30 year
  • DPA Terms:
    • Repayable: 10 years, rate is 2% higher than first mortgage.
    • Forgivable: 30 years, 0% rate.
      • Forgiven after 36 consecutive, on-time payments on the first mortgage.
ELIGIBLE PROPERTIES
  • 1-2 Unit Attached/Detached SFR
  • PUD
  • FHA Approved Condominiums as per HUD Handbook 4000.1. Both Single Unit Approval are allowed.
  • Modular Homes
  • Manufactured Homes (Single Family Unity only, multi-wide). Manufactured homes must meet following requirements:
    • Built on or after June 15, 1976
    • Home must have been built to the FMHCSS as evidenced by having a HUD Certification Label/Tag
    • New construction for manufactured housing is allowed, provided the manufactured home title conversion to real property is initiated prior to CBCMA purchasing the loan.
INELIGIBLE PROPERTIES UNDER MANUFACTURED HOME
  • Single Wide manufactured Home
  • 2-4 unit propertiies
  • Proposed or under-construction properties
  • Cooperative
  • Manufactured homes in “parks” not held in fee simple ownership, commonly known as “Mobile Home Parks”
  • Properties with resale restrictions
  • Site Manufactured Housing Condominiums
  • Home that has been previously installed or occupied at any other site
NON-OCCUPANT CO-BORROWER/CO-SIGNER/GUARANTORS
  • Allowed as per FHA guidelines
  • Not allowed when property is a manufactured home
MINIMUM CREDIT STORE
  • 600
  • All bowers must have at least one credit score

Options

  • AUS Approval
    • DU Approve/LP Accept
    • Manual Underwriting is also allowed except when property is a manufactured home.
  • Maximum LTV/CLTV Allowed
    • LTV
      • Base loan amount must not exceed 96.5% of the lesser of appraised value or purchase price + FHA UFMIP
      • Must not go below 90%
    • CLTV: no limit
  • Maximum Loan AmountFirst lien:Standard Balance: as per FHA confirming limits
    High Balance: Minimum Loan Amount to be $1 more than FHA conforming limits:Repayable: Allowed for 3.5% assistance
    DPA:3.5% of lesser of Purchase Price or Appraised Value
    Subject property in SC or SK: Minimum assistance amount is $5000. Therefore, for purchase prices below $143,800 with 3.5% assistance, the DPA amount will be $5000 in these states.
  • Maximum Loan Amount
    • First lien:
      • Standard Balance: as per FHA confirming limits
      • High Balance: Minimum Loan Amount to be $1 more than FHA conforming limits:
        • Repayable: Allowed for 3.5% assistance
    • DPA:
      • 3.5% of lesser of Purchase Price or Appraised Value
      • Subject property in SC or SK: Minimum assistance amount is $5000. Therefore, for purchase prices below $143,800 with 3.5% assistance, the DPA amount will be $5000 in these states.
  • Area Median Income
    • Not applicable
    • Borrowers with income above 135% will be subject to pricing hit
      • only occupant borrowers’ incomes are considered to check AMI limit
      • Use qualifying income on loan to check the limit.