Blog with MAE Capital

Down Payment Assistance

April 23rd, 2021 10:11 AM by Gregg Mower

Have you been trying to enter the Real Estate market but just cannot save the money required for a down payment and closing costs?  Then you have come to the right place.  We have a new program that will give first-time buyers or homebuyers in general up to 5% of the purchase price for a down payment and closing costs.  This program is great as you are not required to be a first-time homebuyer to qualify for this.  We have partnered with a company that has a program called Chenoa.  This is a pool of funds that are designated to assist home buyers with the costs of getting a home.

The Chenoa program is paired with an FHA Loan and this works great as FHA only requires a 3.5% Down payment and that would leave you with 2% left for closing costs.  It is conceivable for a home buyer to get into a home with no money out of pocket.  In this crazy Real Estate Market, I would advise my clients to have at least 1% of the sales price as a minimum.  This would be for additional items such as inspections to make sure the house you are buying is in good condition.  Although the market is crazy, and sellers are calling the shots you still have the ability to negotiate work to be done on a house prior to closing.  

Since the Real Estate market is so competitive this program will allow for a buyer to still be “in the game” as a buyer you will not need to ask the seller for any concessions towards the purchase because you as a home buyer do not have enough money.   In a regular Real Estate market, sellers will generally help pay closing costs if the price of the home can absorb those fees.   In this market asking the seller to pay for anything is tough as there will be a line of people trying to buy the same house with more money down or no concessions from the seller.  This is where this program makes good sense for a buyer as they will not have to ask the seller for any money towards closing costs.  

The documentation for this program is the same as a regular FHA loan.  You will need to provide 30 days of pay stubs, 2 months of bank statements, W2s for the last 2 years, and a 620 Credit score.  There are income limitations that are you cannot make more than 130% of the median household income for your area in Califonia.  It can also go fast as there is no more additional underwriting that some other Down Payment Assistance programs require such as CalhFA.   This will also help to get your offer accepted as you can close this in 30 days or less.  At MAE Capital Mortgage we are here to walk you through this loan and all the loans in our arsenal.  It doesn’t cost anything to see if you qualify for this we are just a phone call or a click away.  We look forward to assisting you with this product in California.  Call us at 916-672-6130 to talk with a licensed Loan Officer or Click Here to provide your information confidentially.  



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