Navigating the Path to Homeownership: CalHFA’s Down Payment Assistance Programs
For many aspiring homeowners, the prospect of saving for a down payment can feel like an insurmountable obstacle. Fortunately, organizations like the California Housing Finance Agency (CalHFA) offer valuable assistance programs designed to make homeownership more accessible. CalHFA provides various options for down payment and closing cost assistance, including their MyHome Assistance Program which offers deferred-payment junior loans to eligible borrowers.
What is the MyHome Assistance Program?
CalHFA’s MyHome Assistance Program is designed to help first-time homebuyers bridge the gap between their savings and the down payment required to purchase a home. Through this program, eligible borrowers can receive a deferred-payment junior loan to assist with down payment and/or closing costs. The term “deferred-payment” means that payments on this loan are deferred until the home is sold, refinanced, or paid off in full, making homeownership more financially manageable.
Eligibility Criteria
To qualify for CalHFA’s MyHome Assistance Program, borrowers must meet certain criteria:
1. First-Time Homebuyer Status: CalHFA defines a first-time homebuyer as someone who has not owned and occupied a home in the last three years, and who has not lived in a home owned by a spouse during the same period. Exceptions may apply, so it’s advisable to consult with a CalHFA Preferred Loan Officer for personalized guidance.
2. Occupancy Requirement: Borrowers must occupy the property as their primary residence. Non-occupant co-borrowers are not allowed.
3. Homebuyer Education: CalHFA borrowers are required to complete homebuyer education counseling and obtain a certificate of completion from an eligible homebuyer counseling organization.
4. Income Limits: Borrowers must meet CalHFA’s income limits for the program.
Program Details
The MyHome Assistance Program offers different loan amounts based on the type of loan:
• CalHFA Government Loans (FHA): Borrowers can receive a deferred-payment junior loan of up to 3.5% of the purchase price or appraised value, whichever is lower.
• CalHFA Conventional Loans: Borrowers can receive a deferred-payment junior loan of up to 3% of the purchase price or appraised value, whichever is lower.
Property Requirements
In addition to borrower requirements, the property itself must meet certain criteria:
• The property must be a single-family, one-unit residence, including approved condominiums/PUDs.
• Certain additional dwelling units, such as guest houses, granny units, and in-law quarters, may be eligible.
• Manufactured housing is permitted.
• Condominiums must meet the guidelines of the first mortgage.
Get Started Today
If you’re ready to explore your options for down payment assistance and take the first steps toward homeownership, Golden Bear Mortgage is here to help. Contact us at (916) 761-2327 to learn more about the MyHome Assistance Program and determine your eligibility. With CalHFA’s support, owning your dream home may be more achievable than you think.
Don’t let the challenge of saving for a down payment hold you back. Empower yourself with the resources and assistance available through CalHFA’s programs, and embark on the journey to homeownership with confidence.