Understanding Downpayment Assistance – The First Step
Downpayment Assistance is a valuable help for home buyers looking to purchase your first home. Many Cities, Counties and even the State of California have down payment, closing cost assistance or both.
The challenge is, they are very difficult to find, funding is usually exhausted very quickly and the qualifications are different depending on where you’re trying to buy and what program you’re looking for.
We can help! Take a moment to complete this simple form, and let us look into what’s available that you might be able to take advantage of.
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searching for down payment assistance programs in monterey county, california. currently searching for home buy in this area buy the prices are still a little high, assistance with down payment will help to make a comfortable monthly payment.
Thanks, Jessica
Hi Jessica – The County of Monterey is out of funds for thier first time home buyer program at this time. I sent you the link to thier site to monitor for future funding and will post on site later.
Nehemiah (with an FHA loan) and CalHFA are state wide programs that are available. Type these programs into the search bar for more information.
Let me know if you have any additional questions
Hi
I am searching for down payment assistance programs in orange county, california. Currently I am searching for home buy in this area but the prices are still a little high, assistance with down payment will help to make a comfortable monthly payment.
Thank you,
Alina
Hi,
I am searching for a down payment assistance program in orange county, ca. As of oct. 2008 alot of them are no longer providing assistance. My husband is a private school teacher and the market is still to expensive to afford the american dream on our salaries.
Please help.
Thank you,
Jo
Hi Jo,
There is that challenge with many of the county and city down payment assistance programs. You may want to look towards an FHA loan that requires only a minimum 3.5% down payment, of which 100% of that can be a gift from a relative, spouse, fiance.
What cities specifically are you looking in? There are many city specific programs available and we will be happy to do research for you.
Scott
Hi,
I currently live in escondido, ca and my wife and I are in the market for buying a home. I was wondering if there is any funds in san diego that could help us with buying our home.
Please help
Marco
Dear Sir/Madam:
I am a Ventura County Realtor….I understand that many of the Govnt. Agency funds to assist with down payments are exhausted. Could you verify infusion and/or replenishment of those funds for downpayment assistance? Thank you.
A. Alexakis
You’re quite correct about the funding for most Gov. Agency city/county funds. The replenishing of these funds depends on the budget year for the specific entity. It seems that most entities get funding in July-August and typically are exhausted by Sept-Oct. It’s all in the timing.
please for first time home buyer in hesperian ca 92344.
thank you guys for your help.
Hello,
Looking for 100% Financing in Oroville, CA Excellent credit scores, first time home buyers, Husband also qualifies for VA. Trying to pay down some CC debit and looking to buy in about 3 to 6 mos. Is there anything out there for us?
Hello,
I am looking to buy a home in San Jose, CA. I am currently a teacher. Do you know of any home buying programs?
Hi Dawn,
As a teacher in the state of California there may be a couple of options available to you. You may want to look into both CalPERS and CalSTRS 80/17 and the CalPERS 100% financing programs. Here is a link to free classes we offer to learn more about these programs or give us a call at your convenience we will be happy to discuss your options with you.
Click here to see complete schedule of upcoming home buyer classes
I’m on SSI/SS right now, thought it was permanent. Was told last July it is not. They may make me go back to work. I’ve been job hunting since August. No luck yet even with help of a job counselor. Is it possible for a person on permanent disability to buy a home? Did I here you say FHA is easier even with credit problems? I have a judgment that shouldn’t be on there at all but she won’t take it off. I may be able pay her something to get it off if I can get a loan from a family member. If she agrees. So if I get it off that will make my credit almost perfect. But until then not. Can I get a house anyway?
Hi Sherry,
Permanent disability is ok, temporary disability or unemployment income is not allowed by lenders. Yes, FHA is more flexible with credit in some ways. If you only have one judgment on your credit it may not be that big of a challenge. It will certainly take some patience pulling everything together and I believe that it is still possible for you to qualify to buy a home. The only way to find out where you stand and where you go from here is to begin the approval process with the lender (I can help with that if you like) and see what is required to get you approved.
Hope this helps!
Scott
I want to see if there are any programs to help with down payment i am a first time home buyer.
hi i need help with the down payment assistance , for palmdale
I was approved for a FHA loan with a 3.5 down. Looking for down payment assistance in the sacramento area. Please let me know if there’s anything out there for I’m having trouble finding it. Thanks.
City of Manteca or Lathrop,CA first time home buyer, in process of being approved for home loan, do i just call you after i’m approved or have my lender call you or what? And what’s even available for california right now, I have no money set aside for down payment, can make payments monthly, just don’t have EXTRA(does anyone?) Not very good credit and since my credit hasn’t been used in a few years, my score comes up ERR, but lender says can work with us anyway…? What are my chances of becoming a home owner and what help can we receive for down payment?
Hello,
I’m looking to buy in West LA of Hancock Park, Mid Wilshire Area I believe these are highly cost properties. Is there any homes available with in these areas? My husband and I work in Santa Monica and Brentwood area and therefore would like to live not to far from work. Please tell us if there are possibilities for us. We have been approved to a loan of 225,000 and the homes that are available for this amount are in bad areas and very runned down and scary too.
thank you for your assistance,
Adriana
Do you know the availiblilty for downpayment assistance in Alameda county?
Hi,
I’m a first time home buyer looking to buy a house here in Tracy, CA. I wanted to know more about the California downpayment assistance because im 100% sure i will need assistance with the downpayment. What are the qualifications?
Thank You..
Hello, I am also a First time homebuyer, I am looking to pucrchase a home either on Patterson, CA or Tracy, CA. But I do not know if they have a downpayment asst. Program, and if so how do I apply. I have been pre-approved already too. Also, I was wondering about the Alameda county, I read in a website that Oakland offers up to $125,000 in downpayment assistance but does it apply to all cities in the county or not?
Thank You!
Hi Scott: Credit score around 640, apx $5000 available for dp. Looking for foreclosure or fixer (with rehab loan). Need to have a note <=$1200 mo. Paying down debt, aggressively saving to purchasing in next few mos . Looking in the Carson/Long Beach/Gardena, California areas. Are there currently any programs in these areas that can help with DP or closing, and rehab?
Hi Linda,
There are very few options available in this market for “rahab” loans. FHA does offer a loan called a 203K. That being said, you need to apply for, and qualify for that loan first. Once you’re approved for your main financing you need to determine if that program allows for down payment assistance.
With a 640 credit score you will need either a 20% down payment or an FHA loan. FHA does allow down payment assistance. The CalHFA CHDAP program is available for down payment or closing cost assistance. Although there are other programs available for down payment, you would have to check with each program to see what their qualifying guidelines are.
This is really a conversation that is much longer than what I can address here, but I hope this helps
Hi Colton,
Your lender should be able to point you in the right direction. Down payment assistance programs have different qualifying guidelines based on the program. Some programs require that you be approved for your first loan through specific approved lenders. Some programs require that you buy certain homes, or in certain areas and most require that you do not exceed specified income and purchase price limits. I wish I had an easier answer for you, it’s just that every program is different.
I hope this gets you pointed in the right direction
Hi,
My name is Atela Velasquez and am looking into buying a home in Sacramento. We are first time homebuyers and was told by our lender that the downpayment program has been exhausted. Is this true and if not could you please point us in the right direction.
Thank you
Hi Atela,
The downpayment and closing cost assistance programs for the cities and counties are very difficult to get. The funding is often very limited and there is a long waiting list by the time funding is available. I would recommend looking into the CalHFA CHDAP program. It is possible that this program used with an FHA first mortgage will allow you to purchase with only 1/2% down payment. If you would like to get more information, complete the research inquiry on the left side of the site or give us a call.
Hope that helps!
hi, We’re looking to buy a home in Norwalk, wondering if theirs any type of first time buyer assistance for me there??
Hi Silvia, It does not appear that the City of Norwalk offers down payment assistance. There are several Statewide assistance programs that you can look into. The first step, should be to apply for a loan. If you would like to call us or complete an inquiry online, I would be happy to offer you all of the options you would qualify for.
I’m looking to buy my first home in San Bernadino County, possibly Riverside county. I have a steady income and can afford to buy a home, just need assitance with the down payment. Any suggestions?
Hi James,
There are programs available for down payment assistance. The very first step would be to get approved for the financing of the first loan. There are programs available like VA, USDA and two CalHFA loan programs that allow for 100% financing right now. There are so many factors that go into narrowing down these options, it’s difficult to give you a real clear cut answer to your question.
I would start with a lender that is familiar with these programs and get pre-approved. Feel free to call for more information on any of these programs.
I am currently pre approved for an FHA loan in the amount of $147,000 I am looking to purchase a house in Riverside, California. I need help with downpayment and closing costs. Please advice
Sam will call you shortly. There are down payment options for you!
I am currently pre approved for an FHA Loan in the amount of 260,000, I am looking to purchase a home in Tracy, CA. I need help with the down payment and closing cost.. Please Help!
Hi Anthony,
Your lender should be the one helping you with finding down payment assistance. Many of those programs require that the lender is approved to offer the assistance. That’s where I would start. All programs have different qualifying criteria and availability of funds. I would start your search with the CalHFA CHDAP program. This program is offered through the State of California and can be used for closing costs or down payment assistance and it is perpetually funded so you don’t have to worry about them running out of money.
Let me know if you would like more information about qualifying for this program….that’s where I would start my search though.
I AM CURRENTLY APPROVED FOR AN FHA LOAN FOR 300,000 AND I ALSO QUALIFY FOR CDPAP DOWN PAYMENT ASSISTANCE. MY LENDER INFORMS ME THAT ACCORDING TO CDPAP GUIDELINES I NEED TO STILL COME UP WITH 3% DOWNPAYMENT. IS THIS CORRECT. IF THIS CORRECT WHY NOT GO WITH A REGULAR FHA LOAN THAT REQUIRES A 3.5% DOWN PAYMENT. I REALLY NEED SOME ADVICE. THANKS. MICHELE RODRIGUEZ
Hi Michele,
Yeah, unfortunately the California Housing Finance Agency (CalHFA) changed their guidelines to require that the buyer have a minimum of 3 % of your own funds in the deal. It didn’t used to be that way. It’s not a special FHA loan, it’s the same loan program, you are still required to bring in 3.5%. FHA allows you to use down payment assistance or a gift funds to cover that 3.5% – unfortunately, CalHFA’s CHDAP program still requires you have 3% invested. That being said, if you have the 3% – there are a couple of ways you can use CHDAP to lower your payments and cover your closing costs – take a look at this article I wrote about using CHDAP to lower your payments/costs
Hope that helps
Hi Scott, first of i really enjoyed the workshop in LA on august 15th. On August 14 I locked in a rate on a property in La Habra with a lender (BofA). My lender says that I should receive my disclosure in a couple of days. I have yet to sign the BIG pile of papers. My question is ” If I was to find another property other than the one I originally locked in a rate on, will I be able to go with this one and back out of the one I originally locked in a rate on ?
Hi Ray,
It was great meeting you. You’ve really done your homework! The answer to your question is sort of “yes”. Typically, you would not lock an interest rate until your offer has been accepted. If your offer has been accepted and you’re in escrow with the other property you would need to make sure that you don’t lose your deposit and that you are able to cancel without being in breach. As far as switching properties, that part is not a problem. You could not take your “rate lock” with you – meaning, the lock is tied to the property and cannot be transferred over. If your other deal fell out, and you buy a different home, you should not have any challenges re-locking your rate.
Hope that is clear, give me a call if you still have questions
My husband and I really really want to buy a home. We are planning on selling our car and probably getting a little money gifted to us by our parents ($2,000); however, we don’t have much more money than that. We are looking to buy in Orange County close to my husband work (cities like Orange, Anaheim, Garden Grove, Westminster, and the other cities around it). I know the city of Garden Grove and Westminister offer a first time home buyer program of $40,000 which requires 1% down. I was wondering if there are other programs for 1st time home buyers that require 1% or less down since we can make monthly payment with no problem but our issue at hand is coming up with the money to make the purchase
Thanks for your help!
I am presently trying to get my finances together to apply for an FHA Loan. I have a credit card debt of about $4k but I do have an excellent credit score. My question is: Should I clear this debt before applying? Would this make a big difference in the amount that I qualify for if I apply for the loan now, prior to paying it off?
Thanks in advance.
Hi Patty,
This is a really good question, and the answer is….it’s different for everyone. Many times, the $4,000 that you would use to pay off credit card debt would be much better used to to apply toward down payment or closing costs.
The reality is, on that $4,000 your monthly expenses (payments) are less than $200 and that’s not going to affect your qualifying for a loan by that much. I would recommend that you see how much you qualify first, then decide whether or not you need to pay off the credit cards.
That might be a little confusing so let me expand on this a little. Let’s say, as an example, that you want to buy a home for $300,000. If you are approved for a loan that will allow you buy this home WITHOUT paying off the credit card debt – I would say that it might make more sense to hang on to that money just in case of emergency (or moving, or furniture, or landscaping).
If we look at the approval and the maximum you qualify for is $200,000 – Then you may want to see how much more you can qualify for if you do not have to count the monthly payments on those credit cards.
Does that make sense? Sometimes us lender types speak “mortgage”, and that doesn’t always translate into plain English very well
Let me know if you would like to explore these options further, we can certainly help get you pointed in the right direction.
I just recently found out that I might be able to qualify for the calSTRS 80/17 loan program. My question is which loan program is better FHA or 80/17 ? I am looking to purchase a home of about 160,000 and I want to know which one would save me the most.
Hi Luis,
The answer to your question is “It Depends”. With the CalSTRS 80/17 you will have lower mortgage payments and you will not have to pay Mortgage Insurance which could will cost you $2,700 up front (you can finance that into the loan) and the monthly mortgage insurance will cost you a minimum of of $4,200. That’s almost $7,000 that you will pay on an FHA loan in the first 5 years that does not go toward paying down your mortgage. That money goes to an insurance company to protect the lender in case you stop making your payments!
Now, that being said. Because the CalSTRS 80/17 is a fannie mae conventional loan program, if your credit scores are below 740 it could result in your closing costs being increased based on what your credit score is. Even after that, the CalSTRS 80/17 is much less cost than an FHA. The difference is that you may have to bring more money to the close of escrow if you have lower credit scores.
I always say to put them both on paper. Look at the numbers side by side and it should be pretty easy to identify which option will work best for you. The biggest challenge you may encounter trying to do this is the fact that lenders make a lot more money by selling you an FHA loan. Unless you’re working with an ethical company, you will be pushed toward the FHA option although it might not be the best option for you.
Give me a call or shoot me an email if you want Broadview – Katella Branch to take a look at these numbers for you. I believe strongly that the CalSTRS 80/17 is a better loan for the consumer.
Thanks for the question Luis.
Almost forgot – I am offering a free online class about the CalSTRS 80/17 next week and you can get a lot more information about the program on this site – http://www.californiateachersandemployeeshomeloanprograms.com/web-classes-schedule/
My wife and I have been approved for an FHA loan, the only problem is that we don’t have the money for a down payment. I have checked many sites for help and came up with nothing. We are looking for a house in Northern Fontana and we keep on running into the fact that we make too much money , when in reailty, we really don’t. Is there help out there for us? We would really like to move into a house very soon. Scott can you help us?
What program have you looked into for down payment assistance? Do you have anything at all for down payment or closing costs? Your email has the word “fire” in it – are you a firefighter? If so, are you a member of CalPERS? That would be an option you should look into. Besides that, maybe gifts funds to assist with down payment and closing costs. This is no longer a “buyer’s” market. Little to no down payment and asking the seller for closing costs is going to make the home buying process a very difficult one I’m afraid.
I recommend you give us a call and let’s take a look at these options. It’s impossible to explore all of your options or understand your exact situation without getting more information.
Hi Scott, I would like to know why Lenders require a purchase deadline when making the decision of buying there first home, and also, after the offer has expired, am I required to re-apply or can I be given an extension if asked? Thank you.
Hi Mr. Espana,
I am not completely clear about your question. I have a couple of questions for you to help me better identify your situation. By “Lenders” do you mean the lender that you are approved at for the purchase of the home? When you say “offer has expired” are you speaking of the loan approval or did you make an offer to purchase a home?
If you would like, give me a call on my cell phone 714-336-8286 if it would be easier for you. I want to make sure I am answering your questions correctly.
Hi Scott, forgive me on the confusion, yes, I mean the lender whom has pre-approved me for the loan. As for the “offer expiring” I did mean to say of the loan. Thanks again.