Down Payment Assistance
TRADMOR has the CalHFA Down Payment Assistance (DPA) program as well as other DPA programs available for your new home purchase.
As of May 2018 the CalHFA program allows for purchases of up to $660,000, but the real sweet spot for the program is for conventional purchase prices up to $467,000.
For the example below we are going to take a look at an example purchase price of $400,000 and the rates shown are accurate as of 5/22/18. If you need to get a current rate from us for this program please contact us through this web site or feel free to call us at 925-317-1500.
CalHFA Down Payment Assistance Combinations
- The CalHFA program allows for a first mortgage either for a Conforming loan program or an FHA loan program. These offer loan-to-values of 97%, 96.5% or 95% depending on the specifics of the transaction.
- They provide a second mortgage for 3.5% or 4% of the purchase price. This loan can be used for down payment and if any is left after the down payment the remaining amount can be used to pay closing costs. You can only use ONE of these programs for your 2nd mortgage. The two programs are:
MyHome Assistance: Available to anyone in California who qualifies for the CalHFA program. This is for up to 3.5% of the purchase price for down payment and closing cost assistance.
Schools Program: Available to educators who qualify for the program and this is for up to 4% of the purchase price. This can also be used for down payment and closing cost assistance.
- The Interest Free ZIP (Zero Interest Program) is a loan with no interest and no payments in third position. It can be for up to 3% or 4% of the purchase price depending on the option selected. This loan will be paid off in the future when you sell or refinance your home. PLEASE NOTE: The rate on the first mortgage will be higher when you use a ZIP third mortgage.
CalHFA Down Payment Assistance Purchase Example:
This sample is taken from the CalHFA web site based on a $400,000 purchase price and the first loan amount of $388,000. This is for someone who is not a teacher and doesn’t qualify for the Schools program.
The Rate on the first is 5.75% with an APR of 6.92%
The Rate and APR on the second mortgage are 2.50%
The 3rd mortgage has a 0% rate and APR
Borrower’s Estimated Contribution
(Scheduled Ending Month: 135 )