Down Payment Assistance

CALIFORNIA

California Housing Finance Agency (CalHFA) California Purchase only –A borrower can purchase a home with little or no money down with a Conventional or FHA loan. There are 2 down payment and 1 closing cost assistance options. Also, CalHFA offers the energy efficient mortgage for those interested in Energy Efficient upgrades at time of purchase.

  • Down Payment & Closing Cost Assistance: Must be in 2nd position. Payment option deferred.
  1. STEAP (School Teachers and Employee Assistance Program)  Up to 4%
  2. MyHome Assistance Program (Everyone Else) Up to 3.5%
  • Closing Cost Assistance: Can be in 2nd or 3rd position. Payment option deferred.
  1. CalZIP – Closing cost only up to 3% or 4%
  • Combine Both
  • MyHome or STEAP  &  CalZIP together with little or no money out-of-pocket.
Purchase Example:
Purchase Price                                                      $400,000
Myhome Down Payment Assistance               $ -12,000         →       ($22,000 needed in assistance)
CalZIP Closing Cost Assistance                           $ -10,000        →
Borrower’s own money                                       $    -0-
 
Basic Information:
  • Max CLTV 105%
  • California purchases, primary residence only, First Time Home Buyer
  • Income limitations based on the county
  • Max sales price statewide in California $705,000 (high balance loans have additional closing costs)
  • Follows the Conventional & FHA guidelines
  • Minimum fico score:  640 Single family residence,    660 Manufactured homes

Energy Efficient Mortgage + Grant The energy package is the set of improvements that the Borrower chooses to make based on the recommendations and analysis performed by a qualified home energy assessor. The improvements can include energy-saving equipment, and active and passive solar and wind technologies. The energy package can include materials, labor, inspections, and the home energy assessment by a qualified energy assessor with a Home Energy Rating System (HERS) report.

  • EEM upgrades up to 5% of the purchase price
  • Grant, additional 4% upgrades, forgivable after 3 years of occupancy
  • Down payment assistance is allowed, although the closing cost assistance is not available. Must come in with money to close.

 

MICHIGAN 

Michigan State Housing Development Authority (MSHDA) Michigan Purchase only –An eligible borrower can purchase a home with the Michigan down payment assistance program up to $7,500 with a Conventional or FHA loan.

  • Down Payment Assistance: Must be in 2nd position. 0% interest, payment deferred.
    • MI Home Loan up to $7,500 down payment assistance
    • MI Home Loan Flex up to $7,500 down payment assistance
Basic Information:
  • Max sales price statewide in Michigan $224,500
  • 1% Minimum borrower contribution
  • Michigan purchases, primary residence only, First Time Home Buyers & non-First Time Home Buyers
  • Eligible target areas and non targeted areas by county
  • Asset restriction $10,000
  • Follows the Conventional & FHA guidelines
  • Max 45% Debt to income ratio
  • Minimum fico score:  640 Single family residence,    660 Manufactured homes