For many DREAMERS, the application process differs little from that of any other home buyers.
It is important to identify the ITIN borrower using the following explanation:
Under this type of loan, you borrow money to pay for the construction costs of building your home. Once the house is complete and you move in, the loan is converted into a permanent mortgage.
Because this format is basically a two-in-one loan, you only have one set of closing costs to pay, reducing the amount of fees you owe.
During the construction of your house, you only pay interest on the outstanding balance; you don’t have to worry about paying down the principal yet. Typically, you’ll have a variable interest rate during the construction phase, so the rate and your payment can fluctuate.
Once it becomes a permanent mortgage — with a loan term of 15 to 30 years — then you’ll make payments that cover both interest and the principal. At that time, you can opt for a fixed or variable-rate mortgage.
CalHFA Loan 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.
GSFA Platinum Program
With the GSFA Platinum program, there is a grant of 5% of the total loan amount, which is a net grant of 3.5% to the borrower. So, for example: A $350,000 loan would be eligible for a grant of up to $12,250 to put toward down the borrower’s payment and/or closing costs. The borrower would not have to repay the grant because it is forgiven when the loan closes.
The benefits don’t end there. Additionally, the GSFA Platinum program:
What is the Chenoa Fund Program?
The Chenoa Fund Program assists borrowers who lack funds by helping them finance the down payment requirement of an FHA loan, which is 3.5%. It essentially combines the ease of an FHA loan with a grant or second mortgage to cover the 3.5% down payment requirement, meaning you receive could receive up to 100% financing.