VA loans are guaranteed by the U.S. Department of Veterans Affairs and most active duty or retired military personnel qualify. There is no down payment required ($0, nada, zilch) and no monthly mortgage insurance. In many instances the service member can get into a home with very little out of pocket.
CalVet Home Loans are administered through the California Department of Veteran Affairs. The California Department of Veteran Affairs is a state agency that provides
home loans to returning veterans. With a few exceptions, every honorably discharged veteran that resides in California is eligible for CalVet financing (regardless of where he or she entered the military). CalVet has no minimum credit score requirement. As is the case with VA, CalVet requires no money down (on most Products) and allows construction loans, home improvement loans and rehabilitation loans.
USDA mortgage loans are guaranteed by the United States Department of
Agriculture through its Rural Development Guaranteed Housing Loan program (also known as Section 502). Eligible properties include single family residences and farms. The definition of rural as encompassed in the program’s guidelines includes many exurban and suburban neighborhoods nationwide. Geographically, 97% of the USA is eligible for USDA financing. USDA loans require no down payment.
> FHA + Easy Access
This is our standard FHA loan program coupled with an Easy Access 2nd trust deed. FHA Mortgage loans are insured by the Federal Housing Administration and typically requires a down payment of 3.5%. The Easy Access 2nd trust deed is 3 % of the purchase price. As such, the buyer only needs 1/2% down. In real numbers, this is how it works: Assume the borrower wants to purchase a $270,000 home. FHA would loan 96.5% of the value or $260,500. The Easy Access 2nd would loan the borrower 3% of the value or $8,100. ($260,500 + $8,100 = $268,650). The borrower would then have to pay the difference between the purchase price and combined loan amounts as down payment ($270,000 – $268,650 = $1,350). So there you have it. On a $270,000 purchase price the down payment would be 1/2% or $1,350.
> FHA + DPAP (Down Payment Assistance Program, Funded by Non-repayable Grant)
Our DPAP product gives the buyer who is low on cash even more flexibility. In order to lessen the gap between loan amount and sales price, we’ll arrange a grant that does not have to be repaid. The grant can be for either 3% or 5%. Here’s how it works: Assume you’d like to purchase a home for $270,000. With the DPAP product you’d obtain an FHA loan at 96.5% LTV, or $260,500 along with a 3% non-repayable grant of $8,100 leaving a small down payment of only $1,350. See the diagram below:
In the alternative, the borrower can opt for a 5% grant and the numbers would work like this: Again, assume a purchase price of $270,000, a 96.5% FHA loan of $260,500 and a 5% non-repayable grant of $13,500. The borrower would need $00.00 down and actually have $4,500 remaining from the 5% grant to help pay closing costs.
(5% grant of $13,500 – the 3.5% down payment of $9,450 = $4,050 remaining to pay closing costs). Depending on the circumstances the buyer may not have to bring anything to the table. See the diagram below:
payment & closing costs)
> 3% Down – Also known as the Conventional 97
This is a Fannie Mae product that requires only 3% down, The 3% can come from a gift (blood relatives or relatives-by- marriage only). The loan may be used for purchases or rate & terms refinances (no cash-out refinances allowed). This product is ideal for the borrower who does not want a government loan or who would like to drop the mortgage insurance when the loan-to-value drops to 80%.
In the previous illustrations where we used a $270,000 purchase price, the down payment on this product would be 3% or $8,100 (but remember, part or all of that can be gifted.
> CalHFA Loans
Sidwell’s CalHFA products are specifically designed to provide low interest rate
financing for low to moderate income homebuyers in CA, along with down payment and closing cost assistance. Sidwell offers a number of CalHFA products that enable homebuyers to purchase with no money down and little to nothing out of pocket (there is no minimum investment required from the homebuyer). There are also Energy Efficient Mortgages available (coupled with grants to enhance energy
efficiency), and an Extra Credit Teachers Program to reward and incentivize teachers who teach in certain areas. In sum, it’s possible for qualifying borrowers to buy a home in California without a single dime out of pocket.