Home Mortgage News

Community Access Loan is FHA Mortgage Insurance Alternative

With FHA Mortgage Insurance costs increasing in 2013, home buyers are desperately seeking out alternatives to increase buying power and reduce mortgage payments.

The Broadview Mortgage Community Access loan is that alternative.  This is a conventional loan program that does require private mortgage insurance (PMI) offered at a special discounted rate.

The discounted PMI of the Community Access loan is about half of the monthly MIP required on all FHA loans.  With FHA threatening to make mortgage insurance permanent, this program still allows PMI to be removed once the principle balance reaches 80% of original loan amount.

Better than FHA?

There are many features of the Community Access loan that beat out FHA even before underwriting guideline changes were announced.

Some of biggest differences include:

  • 3% down payment compared to 3.5% with FHA

  • Reduced monthly mortgage insurance rates

  • No up front mortgage insurance

Qualifying Highlights

The Community Access loan is primarily targeted toward home buyers and home owners that could use a little extra help.

Income Limits – In the State of California borrower’s income must not exceed 140% of the Area Median Income (by County).

Southern California Income Limits*

  • Los Angeles County – $98,140

  • Orange County – $98,140

  • San Diego County – $106,260

  • San Bernardino County – $88,620

  • Riverside County – $88,620

Maximum Loan Limits – Due to Private Mortgage Insurance restrictions, the maximum loan limit for this program is $417,000.  There is no maximum purchase price as long as your loan doesn’t the maximum loan limit.

Down Payment Assistance Available – The Community Access loan can be used with California Housing Finance Agency homebuyer assistance program.  CHDAP is the State of California’s assistance program that provides up 3% of the purchase price to be used for down payment or closing costs.

CHDAP also has income and sales price limits, so it’s important to let your loan officer know you would like to use this program so we can check limits on both programs.

The Community Access loan has many qualifying flexibilities that make this affordable loan program stand alone when compared to FHA financing.  Currently, private mortgage insurance restrictions do not let us take full advantage of all of the features of this loan program.

Community Access Loan is FHA Mortgage Insurance Alternative was originally posted on

By Diego Loya

Diego Loya is a Realtor - Broker at Home Living Real Estate Brokerage, a Orange County full services real estate company. Over the past 12 years, Diego has helped homeowners sell and buy their homes. He's loves educating and empowering real estate consumers. You can find him on Google, Facebook and Twitter.

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