Did you know there are down payment assistance programs for first time homebuyers in California? Well, there is and especially if you live in Los Angeles / Orange County / Inland Empire / San Diego areas.
If you’re a homebuyer in these counties or in California for that matter, I’m sure you are seeing price of homes become more affordable and within home ownership reach. When have we seen real estate prices and interest rates any better, right? Speaking of interest rates, did you also know rates for many first time homebuyers are as low 4.00% – 4.25%? Yes, its true!
If you’re considering buying a home in California you have the best of both worlds…affordability and down payment assistance programs to help qualify for your new home.
3 First Time Homebuyer / Down Payment Assistance Programs in California
1. California Housing Finance Agency (CalHFA FHA & CHDAP) - BEST PROGRAM
The California Housing Finance Agency offers a below market mortgage option to first-time homebuyers. The CalHFA FHA 30-year Fixed Mortgage provides up to 96.5% financing with a low, fixed interest rate that never changes during the life of the loan. This first mortgage can be combined with CalHFA’s down payment assistance programs for added benefit.
CalHFA FHA
- First time homebuyer or qualified Veteran
- 620 minimum credit score
- Income limits
- Purchasing property in designated targeted or non-targeted areas
- Seller concessions up to 6%
- Loan up to $417,000
- Primary, single family residence
- Rate reductions available when CalHFA program is used with CHDAP or AHPP
- Condos and PUDs must be FHA approved
- Homebuyer Education & Counseling course is required
- Low interest rate
Current sales price limits and income limits apply
Los Angeles, Orange and Ventura Counties
Sales Price: $802,725 for targeted area and $656,775 for non-targeted area
Riverside & San Bernardino Counties
Sales Price: $550,000 for targeted area and $450,000 for non-targeted area
San Diego Count
Sales Price: $767,250 for targeted area and $627,650 for non-targeted area
» CalHFA Income Limits «
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Down Payment Assistance That Works
CalHFA can also help with your down payment or closing cost. Payments on these one-of-a-kind loans are deferred, meaning you don’t have to pay them back until you sell, refinance or pay off your home.
California Homebuyer’s Downpayment Assistance Program (CHDAP) – offers up to 3% down payment or closing cost assistance and can be combined with any of CalHFA’s first mortgages. Moderate Income Limits do apply. Some of the program highlights:
- Can be used for down and closing
- Interest rate reduction when used with CalHFA FHA
- 3% of sales price used as a second mortgage
- Low interest rate
- 1% down payment of borrower funds
- Deferred loan
2. Southern California Housing Finance Agency (SCHFA)
The First Home program is designed to help homebuyers purchase a newly constructed or existing home by providing a below market mortgage loan interest rate 4.125% or a rate of 4.75% with a 3.00% grant for down payment and closing cost assistance. This program is targeted to low and moderate income households. Funds are available on a first come, first served basis.
- First Time buyers or qualified Veteran
- Purchase Price of home up to $729,750
- Available for single-family homes, condos or townhomes
- Income limits apply by county
Los Angeles: 1 or 2 cannot exceed $99,360; 3 or more $99,951
Orange County: 1 or 2 cannot exceed $111,480; 3 or more $130,060
FUNDS ARE NOT AVAILABLE AT THIS TIME
- Loan programs used are FHA or VA
- 3% Down Payment and Closing Cost assistance is in the form of a GIFT and does not have to be paid back
- Non-occupant co-signors are allowed (per FHA guidelines)
3. National Homebuyers Fund - CHF Platinum Grant
This grant program provides down payment assistance for low-to-moderate income individuals and families purchasing a home. Homebuyers can receive up to 3% of their first mortgage to be used as a down payment and/or closing costs.
- Primary residence, owner occupied
- Does not have to be a first-time homebuyer
- Minimum 620 credit score
- Income limits apply
- FHA loan only
- 30-year fixed rate
- Grant funds can not exceed 3% of the first mortgage
- Grant funds can be used for down payment or closing costs
Voila and there you have it. The 3 Hottest First Time ( and Non First Time) Homebuyer Down Payment Assistance Programs for Los Angeles / Orange County / Inland Empire homebuyers.
There are many lenders that are not aware or choose to say, “there are no programs available” or “we can’t do those programs” So, keep in mind, it’s important to work with a lender that is approved and has knowledge of qualifying individuals for these programs.
For more information or to schedule a time how these programs can you help you feel free to contact me anytime Ric Dizon, iMortgage Long Beach (714)396-6829.
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Rates, terms, and availability of programs are subject to change without notice. Licensed by the Department of Corporations CRMLA #4130969
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