If you’re looking to buy a house but want to avoid the income limits and red tape often associated with traditional down payment assistance programs, Security National Mortgage Company (SNMC) offers a solution. Their unique FHA program allows you to buy a home without the usual restrictions, making it easier to achieve homeownership.

This program lets you get an FHA-insured 30-year fixed-rate mortgage, which typically requires a 3.5% down payment. However, with SNMC’s program, you can finance the down payment at an 8.99% rate through a 30-year second mortgage—meaning you don’t need to put down any cash.

In a traditional FHA loan, you’d need to cover the 3.5% down payment out-of-pocket or with gift funds. Let’s use an example market rate of 6.125%. SNMC’s down payment assistance program instead offers a financed second mortgage, so you don’t need to bring cash to the table. The rate for this program may be slightly higher—around 0.75% above market—but it covers the down payment, freeing you from the need to save or provide a lump sum.

Additionally, traditional FHA guidelines allow you to request up to a 6% seller credit toward closing costs. For instance, on a $700,000 house, closing costs are about $20,000. You can use a 3% seller credit for these expenses, making it easier to manage upfront costs. Not needing a down payment also means you don’t have to request a seller credit, which can make your offer stronger in a competitive market.

Let’s say you have $24,000 saved for a down payment on a $700,000 home. Instead of using it solely for the down payment, you could allocate those funds to cover closing costs and forgo a seller credit, improving your chances of getting the home under contract.

This program adheres to all FHA guidelines, so if you need a non-occupant co-borrower, a higher debt-to-income ratio (up to 56.99%), or have a credit score that’s not perfect, you’re still eligible. What makes SNMC’s program stand out is its flexibility: no income limits, no household member restrictions, and no geographic limitations that could otherwise reduce your purchasing power.

While other programs in Sonoma County or California, like those from Burbank Housing, Sonoma County, GSFA, or CalHFA, are beneficial, they often come with strict income and household requirements. SNMC’s program removes those barriers, providing greater flexibility and helping families achieve homeownership without added financial limitations.

Whether you’re a first-time buyer or someone looking to move up, this program can help you get your foot in the door and secure your dream home, all without the usual down payment obstacles.