There is a new option available for homebuyers looking for affordable housing – one with a zero down payment option! This is NOT a governmental down payment assistance program, but an investor that utilizes a first FHA mortgage in conjunction with a “soft second” mortgage.
The 2nd mortgage, in this case, is 3.5% of the purchase price. Depending on the borrower’s income, the 2nd lien can be forgiven after 36 months of on time first mortgage payments!
Certain credit criteria, debt-to-income ratios, and income must be met (there are other specifics, as well) – but a good number of FHA qualifiers should fall within the guidelines.
A few specifics:
- Available in AZ and CA
- 30, 25, and 20 year terms available
- Minimum FICO is 640
- Single Family Residence Only
- Debt-to-Income restrictions apply
Please do reach out to me for more details, as it would be my pleasure to assist!
