Down Payment Assistance – Stress Free Mortgage

For many first-time homebuyers, one of the biggest hurdles to homeownership is coming up with the down payment. The California Housing Finance Agency (CalHFA) has programs specifically designed to help Californians overcome this challenge. Recently, a new program came out called the “Dream for All” which was designed to give an eligible borrower up to 20% in down payment assistance (DPA) and with shared appreciation of 20% to go to CalHFA after refinancing or selling the property. This program’s funding of $300 million was gone in 2 weeks. But there are other down payment assistance programs available to use for first time buyers.
To be eligible for CalHFA, buyers must meet certain income and credit requirements, as well as complete a homebuyer education course. One of the primary benefits of CalHFA is the ability to finance up to 100% of the home’s value, eliminating the need for a down payment altogether.
CalHFA’s DPA program provides eligible first-time homebuyers on their primary home with a loan to cover the down payment and/or closing costs. The loan is a deferred-payment loan with a term of 30 years and has a fixed interest rate of 1%. The loan would be paid off when either a refinance or a sale occurs.
The loan amount is based on the lesser of either 3% of the purchase price for a conventional loan or 3.5% for an FHA loan. There are also additional loans for either 2% or 3% that can be used for closing costs as well. The loan can be used for single-family homes, condos, and Manufactured homes.
In addition to CalHFA, there are also other DPA programs available throughout the country, each with its own eligibility requirements and benefits.
If you’re a first-time buyer looking to get into the market, call me to explore your options and see how we can help you achieve your goals.

​