As close to 100% financing as we are likely to see again the CHF Access 99.5% home buyer financing opens the door to home ownership for many who earn sufficient income to make a monthly mortgage payment but have inadequate funds for a traditional down payment. The program has set aside $5,000,000 to fund second loans which bridge the gap between FHA financing limits and all but 1/2% of sales price. Here are a few more details to go along with yesterdays post, “No Savings? No Problem with CHF Access” .

Debt to income ratio adjusts based on credit score.

• No Fico or under 620 score max DTI – 43%
• 620 to 659 max DTI- 45%
• 660 and over max DTI- 47%

The basic 3% second mortgage rate is fixed at 8.25% with credit score adjustments

• No Fico or under 600 plus 2%
• 600 to 619 plus 1.5%
• 620 to 639 plus 1%
• 640 to 659 plus .5%
• 660 to 679 plus .25%
• 680 and over plus 0%

The 1st mortgage is a fully amortized 30 year fixed rate FHA loan.  The adjustments above apply to the 3% second only.

Keep in mind that there is no pre-pay penalty on either 1st or 2nd and paying off 2nd loan with tax credit (if applicable) after close of escrow is an option to keep monthly house payment lower.

Even with $5,000,000 set aside for this program it won’t last forever. If you are renting now I highly encourage you to give us a call for more information on buying your first home. (530) 224-6702 or email reddinghomes@gmail.com