Down Payment Assistance Programs: An Introduction
Raising the funds for a down payment of 3-20% on the purchase price of a home is a serious hurdle for some borrowers. While many of our clients are well prepared to make monthly mortgage payments and pay for other monthly bills associated with being a homeowner, a down payment often stands in the way of securing home financing. The good news is, there are several city, county, state and national programs that offer assistance to help these potential borrowers seal the deal. Here, we’ll go into more detail about a few of these programs. We also offer privately funded, privately insured “second mortgages,” which can help defer the cost of your down payment as a piggyback loan on top of your regular mortgage. At Caleb Parmenter – Big Valley Mortgage, we serve clients in Fresno, Clovis, Madera, Visalia, and surrounding California communities. We know the local markets, and we offer one-on-one attention that can’t be beat. Contact us today to get started.
The Homebuyer Assistance Program
The California Homebuyer Assistance Program helps low- to moderate-income people and families who are first-time homebuyers (FTHB). This program provides a zero-interest loan with deferred payments – which means you pay them at the end of your primary mortgage. These down payment assistance loans range in value from $1,000 to 20% of the purchase price of a residence. The residence itself must not exceed $221,000 for an existing home or $228,000 for a newly built home. We can quickly determine if you meet income requirements.
The MyHome Assistance Program
The MyHome Assistance Program is a junior loan for down payment assistance worth up to 3.5% of the lesser of the appraised value or purchase price of your home. This loan can only be used in combination with a CalHFA first mortgage loan, which is a state-sponsored program to provide funding for the purchase of a home. To qualify for this statewide down payment program, you must be a first-time homebuyer and occupy your new home as your primary residence. You must complete education counseling. Your income must not exceed CalHFA income limits for low to moderate income, and the home you purchase cannot exceed a value of $660,000.
The School Teacher and Employee Assistance Program
The School Teacher and Employee Assistance Program is a down payment assistance option available to teachers, administrators and other employees of California K-12 public schools. These junior loans are available to qualified candidates who are purchasing their first homes. Loans are available for up to 4% of the purchase price of the loan, and can be used for down payment or to assist with closing costs.
Extra Credit Teacher Home Purchase Program
This down payment assistance program is also available for teachers and K-12 employees working for California K-12 public schools. Like the School Teacher and Employee Assistance program, these are junior loans that may be used for down payment or closing costs. They’re available for $7,500-$15,000 in funding and only for FTHBs.
Let’s Find Solutions that Work for You
To learn more about these down payment assistance programs, grants and other opportunities to save at closing, contact Caleb Parmenter – Big Valley Mortgage. We’re proud to help clients in Fresno, Clovis, Madera, and Visalia find great mortgages for homes they love. We’re here to answer your questions and to help you begin the journey to homeownership.