The CHDAP (California Homebuyer Down Payment Assistance Program) was discontinued last week, and we were happy to see it go. It allowed borrowers to purchase properties with a tiny down payment of 1/2% of the purchase price, but it was cumbersome and slow to close (making it very hard to get offers accepted). Also, it sometimes attracted borrowers who were difficult to work with. JVM no longer offers any type of Down Payment Assistance program.
An alternative to the Down Payment Assistance Program is JVM’s “Closing Cost Assistance Program.” In exchange for a 1/4% to 1/2% higher rate, JVM can often credit some or all of a borrower’s closing costs.
These closing cost credits can often equal or exceed the funds the borrowers might have obtained from down payment assistance in any case. And, in addition, we can close far faster with a closing cost credit than we can with down payment assistance.
Jay Voorhees
Founder/Broker | JVM Lending
(855) 855-4491 | DRE# 01524255, NMLS# 335646
