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California FHA Access Offers a .5% Down Payment Financing Option

The FHA Access Program now can benefit California Homebuyers with the opportunity to purchase an owner occupied primary residence with little (.5%) for down payment. The program combines the traditional FHA 30 Year Fixed 3.5% down loan with a 3% second loan. The second loan is a 15-year fully amortized loan. The lower down payment offers homebuyers the opportunity to get back in the housing market sooner than the traditional FHA loan program.

Program Example

  • Purchase price $300,000
  • 1st loan amount 96.5%
  • 2nd loan 3.5%
  • Total financing 99.5%
  • Down payment .5%

Program Guidelines

  • Eligibility: Borrowers must owner occupy the subject property.  No first time home buyer requirement.  Maximum income requirements apply (120% of HUD Area Medium Income).
  • Property Eligibility: Single Family Residences, PUDs, and FHA approved condos.
  • Credit Score: No minimum credit score required.

Property Flipping – Temporary Waiver Extension

FHA has extended the temporary property flipping waiver announced in 2010 to December 31, 2014. This temporary waiver removes the restriction that prohibits FHA financing of properties being sold within 90 days of seller acquisition.

Through the regulatory waiver, FHA encourages investors that specialize in acquiring and renovating properties to renovate foreclosed and abandoned homes, with the objective of increasing the availability of affordable homes for first-time and other purchasers, helping to stabilize real estate prices and to stabilize neighborhoods and communities where foreclosure activity has been high. The waiver is applicable to all single family properties being resold within the 90- day period after prior acquisition, and is not limited to foreclosed properties. Additionally, the waiver is subject to certain conditions, and mortgages must meet these conditions to be eligible for the waiver. The waiver is not applicable to mortgages insured under HUD’s Home Equity Conversion Mortgage (HECM) Program.

For additional information, refer to the Federal Register Notice .