Calhfa is no more FAKE program.
No down payment needed and no money needed for the closing cost. CALHFA provide 3 loans . Second and third loan have no payment. You make payment only on the first loan.
We can do either FHA or conventional. Income limit in CA is $150,000. So the programs does qualify lot of first time buyer. All you need 640 credit score. DTI is 45% which is standard for any loan in the market. 3rd CALHFA loan which is called ZIP - zero interest program allows 3% or 4% free money to be used toward closing cost.
You have to pay back the 2nd and 3rd loan only when you sell the home or refinance you loans.
For example , if the purchase price is $400,000, First loan will be $386,000
Second loan $14,000 - no payment
Third loan for the closing cost 3% of the first loan will be $11,580 or it could be 4% of the first loan amount for the closing cost which will be $15,440.
Interest rate for the first loan with 3% zip is lower than 4% zip.
You can use zip and seller cre...