The CalHFA Home Loan Program from the California Housing Finance Agency is one of the most valuable tools available for first-time homebuyers in California. With the state’s high housing costs, many potential buyers struggle with saving enough for a down payment or securing favorable loan terms. CalHFA addresses these challenges by offering a range of mortgage options and financial assistance programs, making homeownership more achievable for those who qualify.
One of the standout features of the CalHFA program is its low down payment requirements, which can be as low as 3% for conventional loans and 3.5% for FHA loans. These options make it easier for buyers with limited savings to purchase a home. For veterans or those looking to buy in rural areas, VA and USDA loans offer additional benefits, such as no down payment or reduced mortgage insurance premiums. CalHFA loans are also fixed-rate, giving buyers predictable payments over the life of the loan.
CalHFA Home Loan Program
Beyond mortgage loans, CalHFA provides down payment and closing cost assistance, which can be a game-changer for many first-time buyers. The MyHome Assistance Program offers up to 3.5% of the home’s purchase price to help with the down payment or closing costs, and this second loan is deferred until the buyer sells, refinances, or pays off the first mortgage. For those needing additional help, the ZIP Extra Program covers closing costs through a no-interest second loan, allowing buyers to finance their purchase without the burden of immediate large out-of-pocket expenses.
CalHFA also requires participants to complete a homebuyer education course, ensuring that new homeowners understand the responsibilities and long-term commitments of owning a home. This education is vital in helping buyers avoid common pitfalls and make informed financial decisions.
To qualify, applicants must meet income limits, which vary by county and household size, and the property they wish to purchase must meet certain price limits. As with any program, the eligibility criteria are designed to target those most in need of assistance.
Overall, the CalHFA Home Loan Program is a comprehensive resource for first-time homebuyers in California. With affordable loan terms, down payment assistance, and a focus on education, it offers a pathway to homeownership for individuals and families who may have thought it out of reach. If you’re ready to explore your options, this program can be an essential step toward achieving your goal of owning a home.
Here is a link to some of the other types of home loans I finance as a Broker: Types of Loans
Contact me today to learn more:
Jeff Markell NMLS# 224196
Grandpa Mortgage – U.S. Air Force Veteran
Reverse Mortgages – Mortgage Broker In OC
(714) 614-4040
jeff@empirehomeloans.com
Empire Home Loans, Inc. NMLS# 1839243
Serving all of California
www.mortgagebrokerinoc.com
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