Half a percent down FHA in California

How about this loan program:

99.5% FHA Program
Regular 96.5% FHA first
3% Second for Down Payment
Only SFR and FHA Approved Condos, No multiunit
Ratios up to 43%
Income Limits vary per County. In LA $74,520, in RI & SB $77,400, in OC
$103,320.
No First Time Homebuyer Requirement
Gifts OK

This is a downpayment assistance grant (yes, some are still legal) from National Homebuyers Fund.

"Ratios up to 43%" means either the Total or back end ratio maxes at 43% of debt to income. If it is Total ratio then conceivably someone with no debt could get a housing payment of 43% of total income.

"Gifts OK" means someone can give the borrower the funds and they can come to the table with none of their own money.

There are income limits, they can be found here.

By the way, the underwriting, like the above terms is considered "conservative" for FHA. This is why the loan end is doing so well, they are giving out very risky loans to very marginal borrowers for very little down. I'll post a little bit more on FHA later on.