Are your a Home First Time Buyer? Are you thinking of applying down payment assistance to your next home purchase? If so, I want to share with you on how everyday people are applying down payment assistance to get rid of their down payment and even covering most of their closing cost as well.
Imagine getting into your home and not having to come up with the 3 percent or 3.5 percent towards your down payment... If you live in California there are so many great deals available for you and you can be a homeowner in the next 30 to 60 days. Do you live in Sacramento California or the surrounding area? If the answer is yes, I would love to connect with you and show you how we are changing lives with our down payment assistance programs.
https://my-downpaymentassistance.com/
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My-Down Payment -- Call Now: (916) 413-3967
Check out our other tips for first-time homebuyer.
Are you planning to buy your first house in California? Although homeownership is an exciting path, it can also be overwhelming. There are many programs and tips that can help. Let us show you some.
You may think that just because you are from the Golden State, you need to save tens to thousands and have almost perfect credit to be eligible for a mortgage.
This isn't always the case. This California Housing Finance Agency (CalHFA), first-time home buyer program is designed to help you buy a house, regardless of your credit and financial standing.
1. Conventional Loan Program CalHFA
Who is it for? Home buyers who have less to down payment.
CalHFA Conventional Loan Program was created to help first-time California home buyers get a conventional loan at a low rate of down payment. A conventional loan is a home loan that can be obtained through banks or credit unions.
The CalHFA Conventional Loan has a term of 30-years. This means that borrowers will have to make monthly payments on their loans for a period of 30 years. CalHFA may offer lower interest rates to low-income borrowers if they apply for a conventional mortgage.
CalHFA can help find qualified lenders to process this type loan.
Some requirements include:
Some mortgage lenders may have additional requirements. CalHFA home loan options typically allow for a down payment of as little as 3.3% of the home's worth. Consider a $200,000 home loan. Only $6,000 would be needed for a down payment.
The mortgage rates for this program are typically lower than the market rate, however they are often higher than those of government-backed home loans.
2. CalPLUS Conventional Loan Program
Who is it for? It is for home buyers who need assistance in securing funds for closing costs.
CalPLUS conventional loans include all of the benefits of CalHFA's conventional program, but you also have the option to finance closing costs with a zero interest loan.
How does this work? CalPLUS loans may be combined with CalHFA’s Zero Intent Program (ZIP). The ZIP program allows borrowers to pay closing costs by paying 2% or 3% of their mortgage amount.
The interest rate for this ZIP loan is 0%. Payments are deferred over the life of your mortgage loan. The home loan will not be repaid until you sell, refinance, or pay off your mortgage.
CalPLUS borrowers are eligible for assistance with closing costs. However, they will be charged slightly higher interest rates than other CalHFA loan holders.
Some requirements include:
3. CalHFA FHA loan program
Who is it for? For home buyers who are looking for low mortgage rates.
CalHFA FHA loan program for first-time homebuyers is backed by U.S. Federal Housing Administration. FHA loans offer lenders greater security than conventional loans, because they are guaranteed by the federal government. FHA loans are often offered at lower interest rates that conventional loans. Borrowers can also make as little as 3.5% down on these loans.
CalHFA FHA Loan is a fixed loan with a 30-year term that can be obtained through any of the major lenders in California.
Some requirements include:
4. CalPLUS FHA loan program
Who is it for? FHA borrowers that need assistance raising funds for closing costs.
CalPLUS FHA Loans include all the same features as CalHFA FHA Loans, but can be used ZIP to help with closing costs - just like CalPLUS traditional mortgages.
ZIP loans can either be offered at 2% or 3.3% of your total loan amount and have interest rates that are 0% deferred for the lifetime of your mortgage loan.
You will pay a slightly higher rate of interest on these loans.
You can layer ZIP with the MyHome loan program so that borrowers get help with down payments.
Some requirements include:
5. CalHFA VA Loan Program
Who is it for? California veterans, active military personnel and eligible surviving spouses.
CalHFA VA Loan is designed to aid current and former military personnel obtain financing for their home. This loan is provided by the Department of Veterans Affairs. It is usually lower than market rates and requires no down payment. It is also a fixed loan for a period of 30 years.
Some requirements include:
You must be either a veteran or active-duty soldier, or a eligible surviving spouse. Learn more about eligibility at the VA website.
Minimum credit score of 660 is required
You must have a ratio of 43% or less in debt to your income.
California's income limit by county does not allow you to make more than your income. You can check the income limits in your county to make sure that your income is within their restrictions.
You will need to complete a homebuyer's education course. CalHFA offers recommended courses.
VA loan borrowers are required to pay a fee of 1%. To help pay this fee and other closing expenses, however, the MyHome program can be used.
CalHFA will help you find the best VA lender.
6. CalHFA USDA Loan Program
Who is it for? Buyers who are looking for a rural home in California.
CalHFA USDA loan is the best option for anyone looking to buy a home in California. This loan is available through the U.S. Department of Agriculture. It comes with many perks such as 100% financing (no down payments). CalHFA USDA loan is a 30-year fixed loan.
Some requirements include:
The property must not be located in a rural area. CalFHA will help you find out if the location you are interested in buying is allowed.
Minimum credit score is 660
A minimum of 43% debt-to-income ratio is necessary.
Your income must not exceed the USDA income limit for your county. California has different income limits than USDA, so make sure to check that your income is below the limit for your county.
You will need to complete a homebuyer's education course. CalHFA offers recommended courses.
You will need to meet the requirements for eligibility to receive a USDA loan.
7. CalHFA Downpayment Assistance Programs
It is for whom? It is for home buyers who require assistance in securing down payment funds.
CalHFA offers assistance to help with down payments. These loans can be combined and used with other CalHFA programs provided that you meet the income requirements. MyHome Assistance, the principal program that offers down-payment assistance, has special rules for employees of school and fire departments as well as VA loan borrowers.
MyHome Assistance Program
This program provides a loan up to the lesser amount of $10,000 or 3.5% of your home's loan value at closing. FHA loans allow for up to 3.5%. This loan is available to assist with closing costs or down payment.
MyHome loans are deferred loans. Payments are not due until the loan is repaid or you sell the property or refinance it. MyHome loans are not like ZIP. Interest is charged on top of the principal.
This program is only available to first-time home buyers who meet income requirements.
MyHome for Fire Department Employees and School Employees. VA Loan Borrowers
These are the special rules for first-time California homebuyers who are:
Teachers
An employee in a K-12 school
Firefighters
Fire Department Employees
The loan covers 3% of the home's worth in the form a simple interest, deferred loan. There is no cap of $10,000.
The $10,000 cap is also exempt for VA loan borrowers regardless of their location.
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National First-Time Home Buyer Programs
Although many grants and programs are available at the local or state level for first-time home buyers, California residents can also apply for loan opportunities nationwide.
There are many loan options available nationally that can be very beneficial for first-time home buyers.
Fannie Mae Freddie Mac 3% down options. Fannie Mae, Freddie Mac offer a couple of options to buyers who are looking for a mortgage that requires only 3% down. You will need to meet income requirements and be a first time home buyer for each program.
FHA loan: First-time borrowers love these loans because they require lower credit scores, and have low down payments. With a 580 credit rating and 3.5% down, you can get a loan. It's possible to get approved for a loan with a credit score of below 580 if you have more money available for a downpayment.
USDA loan: These loans let borrowers from eligible areas get a loan without any down payment. They require credit scores of minimum 640. It is possible to have lower scores.
VA loan: The VA loan's 0% down option allows you to get homeownership if you are a veteran or active-duty servicemember.
Some national home-buying programs are available that can assist first-time buyers.
The Department of Housing and Urban Development offers the Good Neighbor Next Doors program. This program allows teachers, firefighters, and police officers to purchase eligible HUD-owned properties in eligible areas at 50% off.
Fannie Mae HomePath Buyer Program: Fannie Mae offers this program that allows buyers to purchase Fannie Mae foreclosed properties for as low as 3% down and up to 3% in closing cost assistance.
Tips for first-time home buyers in California
Here are some additional tips for home buyers who have not yet mastered the California financing options.
Tip 1: Do your research
The more information you have about home-buying, the better prepared you will be. Do your own research before you rush to buy a home. Ask your friends for help, search the internet for information about your neighborhood and visit My-Down Payment for additional information.
Tip 2: Find a Great Agent
The most important person you will communicate with throughout the process of buying a home is your agent. It is important to work with an experienced agent who understands the California real estate market.
Local agents with this experience can help you navigate neighborhoods that suit your family's financial and family needs. They will show you homes that match your budget and provide valuable advice. They can also represent you in negotiations. Granite Bay Homes will connect you to an agent (Jenifer Whigham) and homes available in your area.
Tip 3: Get preapproved
Preapproval for a mortgage will streamline the home loan application process. Once you have a clear idea of the type of home loan that you are interested in, contact lenders to start the preapproval process. After you've found the perfect home, you will find it easier to apply for financing. This will also give you an idea of what you can afford.
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The Bottom Line
California offers many programs that are available to first-time buyers. To begin, research the program that interests you. Next, begin the preapproval process to learn more about your options. Then, you can team up with a local realtor to help you find your dream home.
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Call My-Down Payment Assistance 916-413-3967 - Team Whigham service all of Northern California and Southern California! Some areas included are: Sacramento | Natomas | Rosemont | Galt | New Castle | La Riviera | Rancho Cordova | Cameron Park | Fabulous Forties | Florin | Foothill Farms | Orangevale | Rio Linda | Elverta | Citrus Heights | Folsom | El Dorado Hills | Carmichael | Roseville | Lincoln | Loomis | Lodi | Antelope | Auburn | Granite Bay| West Roseville | Sun City Lincoln | Sun City Roseville | Auburn | Penryn | Gold River | Land Park | East Sacramento | Elk Grove| Pocket Area | Davis | Woodland | Contra Costa County | San Francisco County | Antelope | San Diego County | Alameda County | Yuba City | Ione CA | Jackson CA | North Highlands | Los Angeles County| Orange County | Long Beach | Los Angeles County | Placer County | El Dorado County | Amador County | San Diego County | San Bernardino County | Orange County | Alameda County | Sacramento County and many more in the Northern California and Southern California area.