This fun video shows the basics of the mortgage loan process.
An FHA loan is a mortgage issued by an FHA-approved lender and insured by the Federal Housing Administration (FHA). Designed for low-to-moderate-income borrowers, FHA loans require a low 3.5% minimum down payment and have lower credit score requirements than many conventional loans. ...
You'll typically need a credit score of at least 580 to qualify.
100% Financing USDA loans are low-interest mortgages with zero down payments designed for low to moderate income Americans who don't have extra funds to qualify for traditional mortgages. You must use a USDA loan to buy a home in a designated area that covers several rural and suburban locations. In the North State this is most areas outside of the Redding city limits. USDA loans also allow seller concessions for closing costs to 6% of the purchase price.
CALHFA is a Down Payment Assistance Program. The money you put "down" or the down payment on your home loan can be one of the largest hurdles for many first-time homebuyers. That's why CalHFA offers several options for down payment and closing cost assistance. This type of assistance is often called a second or subordinate loan. CalHFA's subordinate loans are "silent seconds", meaning payments on this loan are deferred so you do not have to make a payment on this assistance until your home is sold, refinanced or paid in full. This helps to keep your monthly mortgage payment affordable.
The 3% down mortgage
from Fannie Mae!
For buyers looking for a low-down payment mortgage option that's not backed by the FHA, Fannie Mae’s HomeReady may be the answer. This program is for low to moderate-income first-time buyers or repeat buyers. It allows credit scores down to a 620. Cash for the 3% down can also come from multiple sources including gifts. Home Ready also provides reduced mortgage insurance coverage which is cancellable once balance reaches 20% equity (some restrictions apply)
The Freddie Mac Home Possible mortgage offers more options and credit flexibilities than ever before to help low-to moderate-income borrowers attain the dream of owning a home. In addition to its down payment requirement of as little as 3%, Home Possible now offers more options to responsibly increase homeownership for all. Co-borrowers who do not live in the home can be included for a borrower’s one-unit residence, borrowers are permitted to have another financed property, and more –all with competitive pricing and the ease of a conventional mortgage.
Down payment assistance programs were created to help low to moderate income homebuyers in the state of California purchase a home by providing down payment and/or closing cost assistance in the form of grants, silent seconds, or low rate seconds. With most programs you can receive 3%, 4%, or 5% of the first mortgage loan amount for the down payment, and/or closing costs with no required monthly repayment. (May require payback at time of sale, or refinance)