Orange County down payment – CA down payment program

Posted on October 12, 2009. Filed under: First Time Buyer help, Lenders & Loan info, Orange County Real Estate | Tags: , , , |

handstand-girlHi all,

We know. You want to buy a home in Orange County because prices and rates are down.  Plus, there’s so many tax incentives right now.  Buuuut the down payment hasn’t magically appeared in your bank account.  Well, we may have a solution for your down payment blues.

This week I had breakfast with another one of our preferred lenders, Bruce Campbell. I wanted to let you know about a loan option Bruce offers which I haven’t seen from other lenders:

FHA based loan that only requires a HALF PERCENT down!

What?  Half a percent? Like, if I were buying a $200,000 condo……….. $1000 dollars? How could that be?????

I know, I asked the same thing. The program basically involves TWO loans – your first is an FHA loan, and your second is an ‘access’ loan. When you buy a property with a normal FHA loan, you are required to put 3.5% down. The second ‘access’ loan in this scenario pays your other 3%, so this is how you get away with only putting down a half percent.  *please note, there are other fees buyers need to pay such as inspection, escrow, and any other fees you agree to on page 2 of the purchase agreement.  These fees are all minimal compared to a down payment, though!*

I immediately asked about the rate of the 2nd access loan, thinking it was probably high. Bruce said its usually less than 8.25%. That’s way better than a lot of seconds, and if I recall correctly it wasn’t a variable rate loan. Ok, that base was covered.

What about other stipulations? Who qualifies? I was suprised there weren’t more – the main 3 were:

  1. In Orange County, combined max household income needs to be LESS than 103K.
  2. You need a 580 credit or above (this is for all FHA loans, though)
  3. Your Debt to Income Ratio can’t be higher than 43%. If you want to buy a home in Orange County, but don’t have 3.5% saved, this program could be a great option for you as long as you match the above criteria. You don’t even have to be a first time buyer!

Bruce said he’d be happy to talk details with you, no obligations. Here’s his contact info so you can find out for sure if you qualify:

Bruce Campbell

BR.Campbell@cox.net

Phone: 949.330.6637

Cell:     714.356.7790

Fax:     949.606.9003

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    Orange County, CA Real Estate for hip first-time buyers and investors. Plus, fun things to know and do in OC.

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