FHA Loans / USDA Zero Down Loans / VA Loans

How Does The Sapphire Downpayment Grant work?

February 5, 2016 at 4:38 pm By

Homebuyers in Temecula, Murrieta and other areas of California can now buy a home with a Downpayment Assistance Grant that does NOT need to be repaid. Yes who read that right. It’s a true grant, not a deferred loan like many other programs.
With the Sapphire Downpayment Grant program, California homebuyers can choose to have either 3% or 5% of the Total FHA Loan Amount provided as a Grant at closing. The grant funds can be applied to the FHA 3.5% Downpayment requirement and also to Closing Costs. The cool thing about this grant program is there is no “2nd underwrite” but an agency such as CalHFA (that adds a certain number of days to the closing process and has often been known to cause delays or even complications). There’s one Underwrite. That’s it.
Here are some highlights of the program:
* 3% of 5% Grant never to be repaid
* Tags along with a standard FHA loan
* Not restricted to First Time Homebuyers!
* There are Income restrictions. They can be found here, County by County http://nhfloan.org/programs/nhf-sapphire/limits.aspx
* The grant works not just with FHA but also USDA and VA loans also!
* Buyers can own other real estate and still be eligible
* Eligible properties include Single Family Homes, Manufactured Homes, Condos/Townhouses but NOT duplexes or other multi family homes

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