California down payment assistance programs and grants are the most confusing and least understood part of the home buying process, even for many lenders! A recent study found that 70% of first time home buyers (and current home owners) in California are not aware that millions of dollars in down payment assistance or closing cost assistance programs go unused each year. Show
Most people, including real estate agents and lenders, are shocked when I tell them there are more than 260 fully funded homebuyer assistance programs in California. Guess what…37% of the programs DO NOT require you be a first time home buyer! Did you know, another recent study by RealtyTrac found that 87% of all homes qualify for some sort of homebuyer or down payment assistance program based on the average sales price and buyer’s income? Who Offers Downpayment Assistance Programs?Question: Who do I contact about qualifying for down payment/closing cost assistance from the city, county, state, or a non-profit agency? Answer: Contact me. We specialize in downpayment assistance programs throughout all of California. Call direct: (951) 215-6119 or contact us
here. The mortgage lender who qualifies you for the mortgage loan also determines your eligibility for a home buyer assistance program. Buyer Beware: Most lenders are not approved to offer a majority (or any) of the assistance programs you are likely eligible for. Many lenders purposely withhold valuable information and not inform you about all your options (because they cannot offer them) or to prevent you from seeking assistance from a lender who is more experienced or can offer more or better assistance programs. FYI – I have access to nearly all homebuyer assistance programs in California. If I cannot offer a certain program, I’ll refer you to a lender who can. Is Qualifying for Down Payment Assistance Difficult?Qualifying for a down payment assistance program is not that difficult. All you have to do is not exceed the programs income limit (if it has one) and have a credit score of at least 600, you are most likely eligible for some kind of assistance! However, every assistance program has it’s own unique set of qualifying criteria, which adds to the complexity of qualifying and processing of a loan application. The more local the assistance program, the more complex or ‘quirky’ it becomes. Always check with your lender (us) to find out if assistance funds are still available before making an offer on a home. If you have a lot of time to waste, read the boring mortgage info below, otherwise, just click the GREEN button below and I will research which programs you will be eligible for. Down Payment Assistance in CaliforniaCalPLUS w/ ZIP EXTRA Homebuyer Assistance Program – CalPLUS w/ ZIP is CAlHFA’s premiere homebuyer assistance program that provides between 3% to 4.5% in down payment assistance, reduced mortgage insurance premiums. CalPLUS is offered in both FHA and Conventional financing. Eligible buyers cannot exceed the county income limit. California Homebuyer’s Down Payment Assistance Program (CHDAP) – One of CalHFA’s most popular assistance program has been DISCONTINUED and replaced by the MyHome Assistance program. CalHFA MyHome Assistance Program – The MyHome Assistance programs provides $10,000 or 3% to 3.5% of the sales price or appraised value, whichever is less in down payment and closing cost assistance to first time homebuyers in California. Eligible applicants must meet qualifying requirements for a CalHFA loan program. CalHFA Forgivable Equity Builder Assistance Loan Program – FEBL provides 10% that can be applied towards your down payment or closing costs and 100% forgiven after 5 years. GSFA HFA Platinum Grant – Golden State Finance Authority offers 3% to 5% assistance in the form of a non-repayable grant to provide affordable financing to California residents. The GSFA Platinum grant works with Conventional, FHA, and VA home loans and does not require you be a first time buyers. Eligible in all counties in California literally provides a grant to help you purchase a home. Call me to find and compare all of your homebuyer assistance options. CalHERO Down Payment Assistance – a forgivable grant for down payment assistance. Eligible borrowers are any current, retired, or volunteer Peace/Police Officer, Border Patrol Agent, Correctional Officer, Firefighter, CalFIRE, Paramedic/EMT, Nurse, Teacher, veteran, or Military personnel. California Firefighter Down Payment Assistance (CFDPA) – This Firefighter down payment assistance program provides assistance to first time homebuyers who are employed (not just firefighters) by the federal, state, local, or tribal fire department. Chenoa Fund Downpayment Assistance – Chenoa Fund offers the Chenoa Edge and Chenoa Advantage, both of which provide 3.5% of the sales price to meet the minimum down payment when using an FHA loan. Assistance is in the form of a 2nd mortgage which may or may not be forgivable, 620 minimum credit score, and borrowers DO NOT have to be first time buyers. NHF Sapphire Grant– NHF provides up to 4% grant money for eligible home buyers that never has to be repaid. Available in all counties throughout California, buyers only need a 620 credit score and can DTI ratios can go up to 50%! Borrowers do not have to first time buyers and can even own other properties. HELP Down Payment Assistance Grant – Provides 4.5% grant that can be applied towards the down payment or paying closing costs. Eligible in all 58 counties in California and do not have to be first time homebuyers. DTI ratios up to 56%. 1% Down Conventional Equity Boost Grant – Down payment assistance program using Conventional financing for buyers with good credit and income. The lender provides a 2% grant and buyer only needs 1% of their own funds. Buyer funds can be gifted from a family member. HomePath Ready Buyer Program – Fannie Mae closing cost assistance program that gives buyers up to 3% when buying a Fannie Mae owned property. Dream Makers Grant – Homebuyer assistance grant that can be applied towards down payment or closing costs. Must be an eligible Veteran, Active Duty, Reserve, or National Guard first time buyer with low to moderate income. Community Home Advantage Program (CHAP) – CHAP provides a reduced interest rate or closing cost credit for homebuyers and homeowners who want to purchase or refinance a home located in an eligible county and zip code of California. There are no income limits. CHF 3% ACCESS Down Payment Assistance – CHF ACCESS offers 3% down payment assistance in the form of a second lien. Not limited to first time buyers, available in all counties, and has flexible qualifying credit requirements. In fact, it’s possible to
qualify with a 580 FICO credit score. (ACCESS program has been DISCONTNUED) Mortgage Credit Certificate (MCC)– The Mortgage Credit Certificate makes home ownership more affordable for first time home buyers by reducing a buyers federal income tax liability. Paying less taxes means you have more income that can be dedicated to paying your mortgage and can even help you qualify for a larger home loan! CalHFA School Teacher & Employee Assistance Program– STEAP provides down payment assistance to eligible teachers, administrators, school district employees, and support staff at K-12 public and charter schools, district offices, and continuation schools. Extra Credit Teacher Program (ECTP) – *** ECTP has been Discontinued*** CalHFA offers a first time homebuyer program for Teachers, Administrators, school Staff, who work in a High Priority school in California. The ECTP teacher loan provides $7,500 to $15,000 for down payment that has an interest forgiveness feature when employed at the school for at least three years. City of Riverside Down Payment Assistance – Up to $50,000 assistance (silent 2nd loan) available to low income first time homebuyers with-in the city limits of Riverside, CA. The CalHOME assistance program requires family household income not exceed make 80% of the Riverside County area median income. Buyers must contribute up to 1% of their own funds towards buying and have 1% in reserves. Funds available while they last …first come, first serve. Riverside County Down Payment Assistance is funded by the Economic Development Agency (EDA). They have three programs that offer assistance to home buyers with low to moderate income. While these programs can offer up to 20% down payment assistance, it does require decent credit history and does have more restrictive
debt-to-income qualifying ratios that can prevent buyers from qualifying for much higher priced homes….even with the large down payment. These programs also tend to take 60+ days to close escrow so consider that when deciding to use this program.
San Bernardino County offers similar EDA down payment assistance but exhausted all of their NSP assistance funds. Here is one county program.
San Diego, Orange County, Los Angeles – Call for details on available county specific down payment assistance programs. Housing Authority of San Bernardino Homeownership Assistance Program– Must reside in SB County for 1 year prior to applying, participate at least 1 year in SB housing program, and contribute a total down payment of 3% of the purchase price. The program requires at least 1% of the down payment must come directly from the participant. SCHFA FIRST HOME Grant Mortgage Program– Offered by the Southern California Home Financing Authority. The SCHFA First Home grant provides up to 4% for your down payment. Eligible borrowers must be true first time home buyers and purchase in Orange County or Los Angeles County. Borrowers can make up to $128,000 and be eligible. Home Ownership Program (HOP) Low Income Purchase Assistance (LIPA) Moderate Income Purchase Assistance (MIPA) Provides a loan of up to $60,000 for down payment, closing costs, and acquisition for first time homebuyers earning between 81-120% Area Median Income (AMI) and up to $35,000 available for homebuyers earning between 121%-150% AMI. Applicants must contribute a minimum of 1% of the home price from their own funds as down payment. Some homebuyers may be required to contribute more than 1% toward the down payment. Property cannot be occupied by a current renter. Property must be inspected by the city, which often asks for many repairs to be made…..many sellers do not like that and will not accept any offer from a buyer using this program. Santa Ana Homebuyer Down Payment Assistance Program Neighborhood Housing Services of the Inland Empire (NHSIE) – Offers down payment assistance to people in Riverside and San Bernardino through these programs.
BBVA Compass HOME Assistance Program – Home Ownership Made Easier program is 100% financing for low income wage earners. BBVA will also provide up to $4,500 in lender credit help pay closing costs. The biggest problem with this program is borrowers cannot exceed 80% of the published HUD AMI limit….which is like $49,700 for a family of 4 in Riverside County. No one making $49,700/year in Riverside County can qualify for a home. CAR Homeowners Association Grant– (Program suspended) The California Association of Realtors® Housing Affordability Fund provides qualified first time California homebuyers up to 6 months of HOA dues. Realtors must provide and complete the application for the new homeowner. If you would like to find out if a particular city or county has a home buyer/mortgage assistance program that you may qualify for, please call me directly (951) 215-6119. Additional Resources & Articles:
Does California have a down payment assistance program?The GSFA Platinum Program helps low-to-moderate income homebuyers in California purchase a home by providing down payment and/or closing cost assistance (DPA). The program is limited to owner occupied primary residences only. There is no first-time homebuyer requirment and the qualifying guidelines are flexible.
How much down payment assistance can I get in California?Qualifying home buyers could borrow up to $11,000 toward their down payment and closing costs under the CalHFA MyHome Assistance Program.
Does California have grants for first time home buyers?Under the First Home Mortgage Program, applicants can receive up to 4 percent of the total first mortgage amount to be put toward paying the down payment and closing cost assistance. This assistance comes in the form of a grant, which has no repayment terms.
What credit score do you need for down payment assistance in California?What are the minimum credit score requirements for CalHFA conventional loan programs? The minimum credit score is 660 for borrowers with income less than or equal to HomeReady 80% AMI LI income limit.
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