Looking to buy a house but you can’t seem to put together the money necessary for a down payment? You’re not alone, as coming up with the cash necessary for a down payment is the #1 obstacle for home buying, above credit scores, making enough money to pay the mortgage every month, and every other reason.
In fact, in decades past, people commonly put 20% down when they bought a home – something that seems untenable for the average first-time home buyer or family starting out. That’s especially true here in California, where prices are higher than the rest of the nation. Help has arrived!
In fact, for a 0,000 home, coming up with 20% down to buy would mean having ,000 laying around, and you can add closing costs to that!
But before you go call your landlord and ask them to renew your rental contract for another year, I have some great news for you.
California down payment assistance is here!
In fact, Guild Mortgage maintains one of the industry’s most extensive network of approved partner relationships with county housing offices nationwide. What does that mean for you? Working with a Guild mortgage broker or loan officer means that you have access to some of the best Down Payment Assistance Programs (DPAs) in California – and the country.
In fact, more and more homeowners are turning to innovative and flexible DPAs, affording them the opportunity to buy a home when saving a large down payment would otherwise be impossible.
DPAs are specifically designed to help first-time homebuyers, those whose incomes fall below the area median income levels, and others who are struggling to save enough to buy.
When you work with a Guild Mortgage lender, you’ll also be able to explore DPAs that allow you to increase buying power or buy a home in a shorter period, the potential to avoid mortgage insurance, and grants that don’t need to be repaid.
In fact, today I’m going to highlight three great down payment assistance programs that are available to qualified homebuyers here in the Golden State.
GSFA
With a mission to “support affordable home ownership in California by providing financial assistance programs to both home buyers and homeowners,” the Golden State Finance Authority (GSFA) has partnered with Guild Mortgage. Together, we provide affordable financing programs with a focus on low-to-moderate income families in California, particularly for homebuyers who are using FHA loans to purchase new or existing homes.
Here are some features and benefits of the GSFA:
- Up to 5% grant
- With down payment assistance Grants, no repayment required
- Minimum 640 FICO score
- County income limits
- No sales price limit
- Super conforming loan amounts available
- New or existing homes are eligible
- Not limited to first-time homebuyers
- Available for FHA/VA/USDA/Conventional/Freddie Mac
- Great 30-year mortgages
- Allows refinances
CalHFA
The CalHFA MyHome Assistance Program offers 3% in closing costs and down payment assistance for first-time homebuyers in California. Here are some high points of this useful and generous CalHFA down payment assistance program:
- Minimum 640 FICO
- County income limits (based on family size)
- County sales price limits
- Up to 105% CLTV
- (1st/2nd/3rd loan structure)
- Genworth MI
- Up to 45% DTI
1% Down
Guild Mortgage makes buying a home amazing again, with their industry-leading 1% down loan program and other down payment assistance programs. Unlike other so-called 1% down programs floating around online, Guild delivers. For instance, our direct lender status means fewer investor overlays, more control and faster closings for buyers.
Here are some highlights of the Guild 1% Down Loan Program:
- Minimum 680 FICO
- Reduced MI Coverage
- No income limits in low-income census tracts
- Conforming loan limits only
- 2% Grant from Guild Mortgage
- Up to 50% DTI
- Income limit of 100% of area median income (no limit for properties in low-income census tracts)
- Not just for first-time homebuyers
- Homeownership education course required
- Guild down payment assistance is a 2% grant to the borrower that does not need to be repaid!
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Are you excited about the possibility of buying your own home again? With these generous Down Payment Assitance Programs, you’d be remiss not to talk to me about home ownership!