All Forum Posts by: Yancy Martin

First Time Homebuyers and Government Programs

This is good news for all of you first time home buyers out there. The government programs available are phenomenal. These government programs are intended for low to moderate income first time homebuyers. Here is a list of some options you can take advantage of.

California Homebuyer's Downpayment Assistance Program (CHDAP). which is designed to provide a deferred payment, simple interest rate junior loan of an amount up to three percent(3%) of the sales price or appraised value, whichever is less. The junior loan may be used for down payment or closing costs and may be combined with CalHFA or non-CalHFA conventional or government first mortgage loan.

High Cost Area Purchase Assistance Program (HiCAP). This is designed to help make homeownership a possibility for the first time homebuyers in some the California's higher cost counties. HiCAP is available only when combined with a CalHFA first mortgage program. In addition, CalHFA will permit homebuyers to use other CalHFA approved down payment assistance loans or grants to help in the purchase of the home.

Affordable Housing Partnership Program (AHPP). This is a joint effort between CalHFA and over 300 cities, counties, redevelopment agencies, housing authorities and nonprofit housing organizations. Low income first time homebuyers, who obtain direct financial assistance from a local government agency or locality with their down payment and/or closing costs, may be able to obtain a CalHFA below market fixed rate loan.

If purchasing a home has brought many ideas to your mind that have prevented you from moving forward. For example; "I don't have a down payment!","prices are too high”,” I don't make enough money!","My credit is bad!” Now is the time to take advantage of the market and become a first time home buyer with utilizing government programs.

Yancy Martin
Real Estate Finance

CalHFA and FHA is your best bet for 100% financing.

Times are different when it comes down to a qualified borrower. If you have a low credit score, you don't make enough money. Guess what? Most people will tell you that you can't get a loan for your new home. The only way to get financed is to bring in a minimum of a 5% down payment.

Well let me give you an update on what is happening with the real estate financing market. The government established the Federal Housing Administration (FHA) in 1934 to improve existing housing standards and conditions.

Really? 1934. So what I see here is that the financing market has been bad before. WOW!!! I guess history does repeat itself. This should all be common sense for all of us. The market has to go through this stage. So for those who are first time homebuyers, now is the time to take advantage of what the government has for you.

CalHFA and FHA were made for first time homebuyers. This enables first time homebuyers to get into a home without being overcharged by brokers. Another good thing is that you have 100% financing available for you. They also allow you to receive down payment assistance.
The best part of CalFHA and FHA is there is no minimum credit score required.

Did you know that in San Bernardino California, you can receive up to 30% for a down payment towards your new home? These are things that have always been around but because we were blinding by subprime and conventional financing, we never bothered to do some homework and research our surrounding areas and cities.

CalHFA and FHA is what I call smart lending and is much better than the conventional financing and extremely better than subprime.

You see CalHFA and FHA aren't new programs, these programs have always been available, the problem is that subprime and conventional was a faster process which led those brokers and agents that wanted to make money quick, well they picked the quicker and less "strict" route.

Do a search on CalHFA and FHA to find out more info on how first time homebuyers can receive 100% financing, down payment assistance, and with no minimum credit score.

Yancy Martin
Real Estate Finance

That is very true. Also because anybody was able to work as an "originator" and because of how easy it was to get into the business, I felt that people were losing respect for those of us who actually take this Profession seriously.

Ok, the question in my mind is. Why is it that the real estate market or, better yet the "brokers" allow young people to solicit real estate loans and transactions? I know that there are rules, but trust me I know that most have you have seen this rule get broken in many cases. Wow, In my case i was unable to join this market until I was licensed to do so. When the market came to a halt and everybody started panicking because the subprime market fell, I was preparing myself to get things done the right way. All these young people were just trying to make money quick, not worrying about building a successful business. They all bought expensive cars and expensive clothing, now most of them are back barely able to make the bills and are now working a 9 to 5 job. Also this all hit brokers that were focused on running "sweat shops" where teenagers were running the office and the branch manager is the only one with the license.

Hmmm? That brings up a couple of questions. Some people ask why is the market so bad? or, Why are all these people losing their homes? Well remember most of the un educated people selling these loans sold the loan that paid the most yield spread. HMMM I wonder what loan that was, oh wait I remember the "Option Arm Loan". Me and my colleagues saw this horrible loan and wished it would disappear for we knew what it would do to people and their livelihood. Supposed "Loan Officers" and Real Estate agents teamed up to offer this loan.

They were using quotes like "Buy a $500k house with a payment of $1,500 a month!!!” Oh but we won’t show you the fine print that says: "After three years you will not be able to afford this house and you’re going to lose it, As well as ruin your credit".

I’m happy the way the market has gone because it leaves only the best of us, as well as the successful.

Yancy Martin
Real Estate Finance