(DPA or DAP) loans are loans that allow you to borrow the down payment, and even make no payments on second for as long as you own the home.  The ammount of the second mortgage is 3.5% for Governemnt loans and 3% for conventional loans.

For Governement loan (FHA) Down Payment assistance, to get the best rates (5.75%  apr 6.12%), you must have a fico score of 640. Debt to income ratios (DTI) can be no more than 45%.  If you have a 700 of higher fico score, the lender allows (DTI) can go to 50%.  Manufactured homes are allowed to 45% DTI.

For Conventional  loans (Fannie Mae) Down Payment assistance, to get the best rates (6% apr 6.27%), you must have a fico score of 680. Debt to income ratios (DTI) can be no more than 45%.  If you have a 700 of higher fico score, the lender allows (DTI) can go to 50%.  Manufactured homes are allowed to 45% DTI.

SELLER AND/OR LENDER CONCESSIONS

A seller can pay all the borrrow's closing costs. For convnetional loans, seller concessions are capped at 3% of sales price, for FHA it is 6% of sales price.  The lender can also pay all clsong costs by adding them to the loan amount to up to 105% loan to value.   That means, that on a $400,000 purchase, the lender can finance as much as $20,000 (5%) in costs to the loan so the borrower pays nothing in escrow. If you choose to have the lender pay all your costs and down payment, expect your rate to rise about 1%.

INCOME LIMITS

Income limits for these products vary from $159,000 (average) to $300,00o in high cost areas such as LA or San Francisco. There are also products available WITH NO INCOME LIMITS at a higher rate, different lender.  Call and we can tell you what are the income limits for your county.  (530-477-9177)

LOW FICO SCORES

For those with fico scores of 600, these loans are still available, with the same features for about a 1.5% interest rate increase.

OTHER REQUIREMENTS:

First time homebuyers will have to take an on-line home ownership course and they will be required to have a 1 year warrantee.