With its diverse landscapes, vibrant cities, and sunny climate, it's no wonder so many people dream of calling California home. This unique blend of opportunity and lifestyle makes it an attractive destination for the first-time home buyer loan in California.
However, in the current high-cost setting of California, homeownership proves to be a very daunting task, specifically for first-time home buyers like you. But every problem has a solution. The better news is that several first-time home buyer loan programs in California are meant to help you get over the financial hurdles. Loan Factory is committed to getting you where these options are best made available for making your dream of homeownership come true by offering support programs and competitive interest rates to help you achieve your first-time home buying goals.
Explore The First-Time Home Buyer Loans in California
The California Housing Finance Agency (CalHFA) offers a range of assistance programs for first-time home buyers in California. To be considered a first-time home buyer there, you must not have owned or occupied a home in the past three years. With some programs, you can qualify even with an income as high as $300,000. Here’s a closer look at the main options available:
1. CalHFA Conventional and CalHFA FHA Loan
CalHFA provides both conventional and FHA loans with fixed rates, offering the possibility to include down payment and closing cost assistance. To qualify, you'll need:
- A minimum credit score of 660 to 680, depending on the loan type.
- To meet CalHFA’s income limits for your area.
- To buy a home priced at $1,149,825 or less.
- To complete the eHome homebuyer counseling course.
2. CalPLUS conventional loan and CalPLUS FHA loan
While CalHFA and CalPLUS programs assist with down payments and closing costs, CalPLUS incorporates an extra loan to cover those costs. The CalPLUS options come with a slightly higher interest rate.
3. CalHFA VA Loan
For military members and veterans, the CalHFA VA loan program offers 30-year, fixed-rate loans. Eligibility requires meeting typical VA loan requirements, including possessing a certificate of eligibility.
4. CalHFA USDA Loan
Designed for those purchasing in rural areas, the CalHFA USDA loan provides a 30-year, fixed-rate mortgage. You must meet USDA income limits and other guidelines to qualify.
5. CalHFA Forgivable Equity Builder Loan
This program offers first-time home buyers a loan of up to 10% of the home's purchase price. The loan is forgivable if you occupy the home as your primary residence for five years and is only available with a CalHFA first mortgage.
6. Down Payment Assistance Programs
Saving for a down payment and closing costs can be a major challenge. CalHFA offers assistance through programs like MyHome Assistance and the Zero Interest Program (ZIP). These are deferred second mortgages, meaning you won't repay the funds until you sell, move, or refinance the home.
MyHome Assistance and ZIP
These programs provide up to 3% (3.5% for FHA loans) of the home's purchase price to help with down payment and closing costs. They can often be combined with CalHFA's loan programs for additional support.
7. California Dream For All Shared Appreciation Loan
CalHFA’s Dream For All program is a specifically first time home buyer loan in California, it provides 20% of the home’s purchase price as a loan. This 20% is used to cover the down payment. When you sell, move, or refinance, you’ll need to repay the 20% loan, plus:
- Up to 20% of the home’s increase in value if your income is above 80% of the area median income (AMI).
- Up to 15% of the home’s increase in value if your income is at or below 80% of the AMI.
There’s a cap on how much you’ll need to repay it can’t be more than 2.5 times your original mortgage amount.
→ Learn more: First-Time Home buyer Checklist
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Why Loan Factory?
At Loan Factory, we provide comprehensive support to first-time home buyers exploring loans and assistance with down payment programs. Our expertise and commitment to customer service make us the ideal partner in your journey to homeownership.
- Expert guidance through every step of the loan process.
- Access to competitive rates and terms.
- Personalized assistance to help you meet first-time home buyer program qualifications.
- Save time and money and stress-free throughout the entire process
→ Learn more: first time home buyer loan for low credit
Conclusion
Starting your journey as first-time home buyer loans in California can feel overwhelming, but Loan Factory is here to guide you every step of the way. Our team of experienced mortgage professionals will help you explore different programs and find a solution that fits your needs.
Ready to take the first step? Contact Loan Factory today at (714) 444-9999 or visit our website at www.LoanFactory.com and let us help you turn your dream of owning a home in California into a reality.
