100% Loans For 1st Time Buyers

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100% financing is a reality for 1st Time Buyers just about anywhere in Santa Clara and San Mateo Counties.

A multiplicity of State, County, and City programs are available and in many cases can be used simultaneously to make housing much more affordable than you would ever know. Even the I.R.S. has got into the game.

Some of these programs provide for an 80% first mortgage, while others provide a wide range of down payment assistance for the remaining 20%. These cover a wide range of strategies from equity sharing to straight cash grants. Often more than one of these will be used to provide the 100% needed.

It is important to use a mortgage broker familiar with all of these programs as the process needs to be co-ordinated with several different agencies.

Rather than try to summarize them all here are links to as many web sites as I am aware of, so do a little homework and contact me with specific questions:


0 CALHFA. CALifornia Housing Finance Agency. http://www.calhfa.ca.gov/ This State Agency is the most common provider of the 80% base loan as they partner with most of the City and County programs.


0 SAN JOSE. http://www.sjhousing.org/program/homebuyer.html has info on great programs for school district teachers, plus faculty and staff of San Jose State University, and down payment assistance on 16 new construction developments. http://www.sjhousing.org/program/HBList.html.

0 Santa Clara City. http://santaclaraca.gov/plan_inspection/first_time_buyer.html for info specifically for first time buyers. Also http://santaclaraca.gov/pdf/collateral/Santa-Clara-Model.pdf for a presentation about the Citys BMP (Below Market Price program). You will find the description beginning on page 10 of the presentation slides.


0 FHA http://www.fha.com/. A huge web site dealing with the best loans available today for buyers who do not meet the specific requirements for the first time programs. 3% down and flexible qualifying make this the first choice. For a snapshot see http://mccordrealtyservices.com/2008/06/08/fha-the-new-mortgage-of-choice/

0 MCC (Mortgage Credit Certificates). http://www.sccgov.org/SCC/docs/Affordable%20Housing%20Office%20of%20(DEP)/attachments/MCC_Brochure_2008.pdf. This is a dollar for dollar reduction of Federal Income Tax in an amount equal to 15% of the total mortgage interest paid each year.

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