As a first-time home
Local Loan Mortgage Programs
Luckily, the government realizes this burden. Residents of South Bay who are looking to buy a Home can avail different types of loan mortgage programs so that they may avoid breaking the bank. The California Housing Finance Agency which is more commonly known as the CalHFA facilitates home buyers in the Golden State with four main mortgage assistance programs. These programs include:
- My Home Assistance Program
- CalHFA Zero Interest Program
- School Teacher and Employee Assistance Program
- Cal-EEM + Grant Program
My Home Assistance Program
This subordinate loan is for the middle class and lower middle-class income group seeking to buy a home for the first time in California. It is a deferred payment that is generally used to either make a down payment or pay the closing costs.
Subordinate means that you do not have to pay back the loan until you sell the house, refinance it or its mortgage is paid off. These loans cover the lower of the home’s appraised value or 3.5% of its purchase price. A good option for qualified borrowers is to combine their down payment assistance loans and grant programs with this program.
CalHFA Zero Interest Program
You can use this program to bring down the closing costs of the CalPLUS Conventional and CalPLUS FHA loans. You can get a zero-interest loan on 4% of the total loan amount in this program. You can have the payments deferred as long as you keep living in the house. However, it has to be paid back in full in case you are selling the house, refinancing it, transferring the title or default on the loan.
School Teacher And Employee Assistance Program
It is very much like the My Home Assistance Program as it is also a subordinate loan that has deferred payments. Its purpose is also to pay for closing costs and down payments. The only difference it has is that it can only be used by teachers, staff members, and school employees who work at K-12 public schools in California.
Cal-EEM + Grant Programs
Energy Efficient Mortgage is an FHA-insured program for both
Eligibility To Get These Loans
- You must be buying a real estate in California
- You have to be a first-time buyer (in most cases), hold a US nationality, permanent residence or a qualified alien
- Your credit scored must not be below 640
- You should fulfill all the requirements of the lender and the insurer regarding income and sales price
- You must undertake an authentic homebuyer education course and get certified
- Leaseholds/land trusts and co-ops not permitted
- They only cover properties up to 5 acres
- Fulfill other program specific requirements