Buying a home is a major financial investment, and for many people, saving enough money for a down payment can be a significant barrier to homeownership. Fortunately, there are a variety of down payment assistance programs available in California that can help make buying a home more affordable.

1. CalHFA

The California Housing Finance Agency (CalHFA) offers a variety of programs to help California residents purchase a home. CalHFA’s down payment assistance programs can be used with both FHA and conventional loans, including those backed by Fannie Mae and Freddie Mac.

CalHFA offers a variety of down payment assistance options, including the MyHome Assistance Program, which provides up to 3.5% of the home purchase price in the form of a deferred-payment second loan. CalHFA also offers the School Teacher and Employee Assistance Program (STEAP), which provides down payment assistance to California public school employees.

2. GSFA Platinum

The Golden State Finance Authority (GSFA) offers the Platinum program, which provides up to 5% of the home purchase price in the form of a non-repayable grant. The GSFA Platinum program can be used with both FHA and conventional loans, including those backed by Fannie Mae and Freddie Mac.

3. CHDAP

The California Homebuyer’s Downpayment Assistance Program (CHDAP) provides up to 3% of the home purchase price in the form of a deferred-payment junior loan. CHDAP can be used with both FHA and conventional loans, including those backed by Fannie Mae and Freddie Mac.

4. VA Home Loan Program

The VA Home Loan Program offers a zero-down payment option for eligible veterans, active-duty service members, and their spouses. While the VA Home Loan Program does not offer a down payment assistance program, there are other programs available in California that can be used in conjunction with VA loans.

5. FHA Home Loan Program

The FHA Home Loan Program offers a variety of low down payment options, including a 3.5% down payment for borrowers with a minimum credit score of 580. The FHA does not offer a down payment assistance program, but there are many other programs available in California that can be used in conjunction with FHA loans.

6. Chenoa Fund

The Chenoa Fund is a down payment assistance program that provides up to 3.5% of the home purchase price in the form of a second mortgage. This program is unique in that it can be used with both FHA and conventional loans, including those backed by Fannie Mae and Freddie Mac.

The Chenoa Fund has two components: the first mortgage and the second mortgage. The first mortgage is provided by a lender and can be either an FHA or conventional loan. The second mortgage is provided by the Chenoa Fund and is either a repayable or non-repayable loan, depending on the borrower’s income.

Borrowers with an income below 80% of the area median income (AMI) are eligible for a non-repayable second mortgage, while borrowers with an income above 80% of the AMI are eligible for a repayable second mortgage. The second mortgage is structured as a 10-year term, with no interest or payments due during the first five years.

To be eligible for the Chenoa Fund program, borrowers must have a credit score of at least 620 and a debt-to-income (DTI) ratio of no more than 50%. Additionally, borrowers must complete a homebuyer education course and contribute at least $1,000 of their own funds toward the purchase of the home.

7. California Homebuyer’s Downpayment Assistance Program Platinum (CHDAP Platinum)

The CHDAP Platinum program is an extension of the CHDAP program and provides additional down payment assistance to California homebuyers. This program provides up to 5% of the home purchase price in the form of a deferred-payment junior loan, and can be used with both FHA and conventional loans, including those backed by Fannie Mae and Freddie Mac.

To be eligible for the CHDAP Platinum program, borrowers must meet the same income and credit requirements as the CHDAP program. In addition, borrowers must contribute at least 1% of the home purchase price from their own funds.

8. HomeReady

HomeReady is a program offered by Fannie Mae that is designed to help low- to moderate-income borrowers purchase a home. The program offers flexible down payment options, including a 3% down payment for first-time homebuyers.

HomeReady also allows borrowers to use income from non-borrower household members to help qualify for the loan, which can be particularly helpful for borrowers with low income. Additionally, HomeReady offers reduced mortgage insurance premiums for borrowers who meet certain income requirements.

9. Home Possible

Home Possible is a program offered by Freddie Mac that is similar to Fannie Mae’s HomeReady program. Like HomeReady, Home Possible offers flexible down payment options, including a 3% down payment for first-time homebuyers.

Home Possible also allows borrowers to use income from non-borrower household members to help qualify for the loan. Additionally, Home Possible offers reduced mortgage insurance premiums for borrowers who meet certain income requirements.

In conclusion, there are many down payment assistance programs available in California that can be used with Fannie Mae, Freddie Mac, FHA, and VA loan programs. If you’re interested in buying a home but are struggling to save for a down payment, be sure to explore your options for down payment assistance in California. With the help of these programs, you may be able to achieve your dream of homeownership sooner than you thought possible.

 

Learn more about Down Payment Assistance and discover your options today!