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Cost-effective tests and a home energy assessment must be completed before qualifying. Once listed, a property is only available for purchase for seven days; available listings are updated weekly. Buyers must also agree to live in the home as their principal residence for 36 months.

Since this program is a deferred-payment junior loan, there’s no need to pay it back until you sell or refinance the property. In many cases, you can combine MyHome Assistance with CalHFA’s loan programs, including FHA, USDA, VA, and conventional loans. First-time homebuyer assistance programs and/or grants were researched by the team at FHA.com.
Interest reduction programs for buyers
Our advice is based on experience in the mortgage industry and we are dedicated to helping you achieve your goal of owning a home. We may receive compensation from partner banks when you view mortgage rates listed on our website. There are similar programs for those buying outside the LA city limits run by the Los Angeles County Development Authority. Doing so could be especially challenging in California, where 20% of the average sales price is over $150,000. FHA.com is a privately owned website, is not a government agency, and does not make loans.
For first-time home buyers, that public good is homeownership and community. You don’t need 20% down to buy a home, and dozens of first-time buyer programs can make buying your first home more accessible. Cash grants, tax credits, and mortgage rate discounts can help you reach your American Dream today. The Home Possible® mortgage from Freddie Mac requires just a 3% down payment, which is why you may see it called a 97% LTV loan. LTV means “loan-to-value,” or what percentage of your new home’s value will be covered by the loan. A Home Possible mortgage offers a good deal of choice, with 15- to 30-year fixed-rate and 10/1, 7/1, 5/5 and 5/1 terms available.
What Is a First-Time Home Buyer Grant?
Homebuyers who participate in the CalPLUS program must complete Homebuyer Education before closing on the loan. This program is an excellent option for California homebuyers looking for low-down payment financing. Department of Housing and Urban Development , insures mortgages for borrowers with lower credit scores. Homebuyers choose from a list of approved lenders that participate in the program. Loans have competitive interest rates and require a down payment of 3.5% of the purchase price for borrowers with FICO credit scores of 580 or higher.
This program provides financing for properties located in designated rural areas. In order to qualify, homebuyers must have a household income that does not exceed 115% of the median income for the area. Additionally, the property must be used as the primary residence and must be located within the eligible rural area. The CalHFA USDA Loan Program can provide homebuyers with up to 100% financing for their purchase, making it an excellent option for those looking to buy rural property. Many First Time Homebuyers and Low Income Families require assistance with credit repair, budgeting, counseling, or financial literacy in order to qualify for a mortgage or get ready to buy that first home. Several community organizations provide counseling to individuals and families looking to purchase homes in Alameda County.
REFINANCELOANS
You may also use a prequalification calculator to give you an idea of where you stand financially before contacting one of our Preferred Loan Officers. Click on the “Find a Loan Officer” tab above to contact a Loan Officer in your area. You’ll also want to look at our income limits and other eligibility criteria.

Luckily, the state has a variety of first-time home buyer loans and grants to help those who need an extra hand. “Sometimes, California Housing Finance Agency loans can be combined with other assistance offers, while others can’t,” says Tony Mariotti, a licensed real estate agent and the CEO of RubyHome in Los Angeles. And since this is a junior loan, payments for the loan can be deferred as long as you live in your house. However, keep in mind you’ll have to pay for the loan if you ever default on your mortgage, sell, refinance, or transfer the title to someone else. Many people who can afford the monthly mortgage payments and have reasonable credit will qualify. FHA.com's compilation is not a complete list, but it can serve as a starting point in your search for the down payment assistance program or grant for your situation.
If you’re not sure which program to choose for your first mortgage, your loan officer can help you find the right match based on your finances and home buying goals. The CalHFA VA program is a VA-insured loan featuring a CalHFA fixed interest rate first mortgage. Here is a list of home buyer eligibility requirements to help you understand whether or not you qualify for these loans. Many counties in California offer homebuying programs and homeownership education classes and training. The Economic Development Agency has a program called the First Time Home Buyer program which provides down payment assistance that will allow qualified families to purchase a home.

A conventional mortgage is a home loan that isn’t guaranteed or insured by the federal government. Conventional mortgages that conform to the requirements set forth by Fannie Mae and Freddie Mac allow down payments as low as 3% for first-time buyers or lower-income home buyers. Unlike FHA loans, conventional loans allow borrowers to eventually cancel their mortgage insurance or avoid mortgage insurance altogether if they put at least 20% down. The conventional 97 LTV loan is for first-time homebuyers of any income level who have a credit score of at least 620 and meet debt-to-income criteria. Borrowers can get down payment and closing cost assistance from third-party sources.
This is the go-to program for many first-time home buyers with lower credit scores. The Federal Housing Administration allows down payments as low as 3.5% for those with credit scores of 580 or higher. The FHA will insure loans for borrowers with scores as low as 500 but requires a 10% down payment for a score that low. Mortgage insurance is required for the life of an FHA loan and cannot be canceled. The Moderate Income Purchase Assistance Program helps first-time, moderate income homebuyers purchase homes by providing loans to cover the down payment, acquisition, and closing costs. This loan option is for Native American veterans and their family members.

For those who can make it through that time, you can then sell the home, leaving you with all the equity and profit to which you’re entitled. All the organizations we’ve listed above should provide advice freely to any first-time home buyer in the state of California. The City of Los Angeles Housing and Community Investment Department has a couple of programs that can help first-time buyers.
That means that until you refinance, pay off your existing mortgage or you sell the home, you will not be required to start making payments. You cannot take advantage of this offer unless you already have a CalHFA first mortgage loan. The CalHFA and CalPLUS loans are both part of California’s conventional loan program, and both are 30-year fixed-rate mortgages, although the CalPLUS is fully amortized. These are fairly standard loans with solid interest rates, though each must be privately insured. To get better benefits, these mortgage options can be paired with the CalHFA Zero Interest Program and Extra Credit Teacher Home Purchase Program. To be eligible for this loan, your annual income can’t exceed the limit set by your county, which range from $118,550 to $228,300.
Down payment assistance programs are loans first-time buyers use to make their down payment instead of using cash. The San Diego Housing Commission First-Time Homebuyer Program offers several types of help, including deferred loans, homeownership grants, and down payment and closing cost assistance. The Golden State has countless down payment assistance programs that can provide financial help toward your down payment and often closing costs.
However, if you sell your house, refinance, repay, or end your mortgage contract in any way, you must repay this loan in one lump sum payment. You can use MyHome with ZIP if you need additional up-front payment assistance. Depending on the state, county or city where you live, there may be first-time home buyer programs that offer benefits ranging from down payment assistance to low-interest mortgages. Many local programs also go by different names, so be sure to check local sites and work with a local lender to find opportunities for which you may qualify.

You can find out more by clicking on the “Borrower & Property Eligibility” tabs above. Another option is to use our Eligibility Calculator to see what programs are right for you. Tax credits are reductions to a person’s federal tax liability to promote specific buyer behaviors, including buying a first home. If you’ve ever heard ofcities paying people to move, you’ve seen forgivable mortgages in action. Governments love them because forgivable mortgages boost homeownership, neighborhood, and community investment — the three pillars of a robust municipal economy.