Down Payment Assistance Programs
Are you excited about purchasing a home, but wary of the down payment required by many mortgages? The BBC Group is here to introduce you to several down payment assistance programs. We help clients in Anaheim, Riverside, Long Beach, Carson, and surrounding California communities. Contact our mortgage professionals today.
MyHome Assistance Program
This program from the California Housing Finance Agency (CalHFA) offers junior loans for up to 3.5% of the lesser of the purchase price or appraised value of a home to help mitigate the cost of down payments. MyHome is a deferred-payment loans in which borrowers do not have to make payments until they have fully paid off their primary mortgaged or have sold or refinanced their homes.
MyHome for Californians who are enrolled in a CalHFA conventional or nonconventional mortgage program. They are only available to first-time homebuyers who do not exceed certain income limits (depending on what mortgage they select) and who occupy their new homes as a primary residence.
School Teacher and Employee Assistance Program (School Program)
This down payment assistance program is available to teachers and other employees of a school district who work for K-12 public schools in California. Much like the MyHome Assistance Program, this loan is a junior loan for up to 4% of the purchase price of a home, and it complements a CalHFA first mortgage loan. School Program recipients must be first-time homebuyers (FTHB).
In addition to these statewide down payment programs, there are also county-specific programs, which are typically reserved for low- to moderate-income borrowers. These include:
The Orange County Mortgage Assistance Program: This program provides deferred payment down payment assistance to low-income, FTHB whose income does not exceed 80% of the average income in the area. Loans are available up to $40,000.
The Los Angeles County Affordable Homeownership Program: This program offers FTHBs with low to moderate income the chance to take out a secondary loan to cover the cost of a down payment. Applicants must meet income eligibility requirements and agree to live in their homes as their main residences.
The Riverside County First Time Home Buyer Down Payment Assistance Program: This program is also available only to FTHBs who meet income requirements in Riverside County. It can pay for up to 20% of the purchase price of a home.
It’s important to note that many county programs are also available to cover closing costs, which can also represent a substantial up-front expense for homebuyers. There are also many more options when it comes to down payment assistance, depending on your income and your goals.
Explore the Possibilities of Homeownership
The mortgage professionals at BBC Group are here to help you at every step of the way in home financing. Even if you think it’s impossible to buy a home because you cannot raise a large enough down payment, talk to us to look at all your options. Federal, state, and local programs exist to help people like you find a path to affordable financing. We have the local experience you need, serving clients in Anaheim, Riverside, Long Beach, Carson, and nearby California communities. Contact us for a quote and to learn more.