According to a recent report from the National Association of Realtors (NAR) the average down payment made by first time home buyers is 12%. Unfortunately this type of reporting has led many first time home buyers to believe that homes can only be purchased if they have a substantial down payment.
For first time home buyers, especially first time home buyers in California that can be quite an obstacle to achieving their dream of homeownership.But fortunately first time home buyers in California have help from a down payment assistance program that will help them buy their first home with a minimum of 1% down.
This help comes from the California Housing Finance Agency (CalHFA) in the form of down payment assistance of 3%. It’s not free money, but it is cheap. Interest accrues at 3% per year (with no payments required) until you sell or move from your first home.
To qualify for the 1% down payment program, you must:
1. Be a first time home buyer or not owned a home in the last three years
2. Be credit qualified for the underlying FHA first mortgage (minimum credit score of 640)
If you need help getting your credit score to that level, contact us and we’ll get you a FREE credit consultation with a credit professional.
3. Meet the income limits, based on family size, for the County in which you will be living. You might be surprised how liberal these limits are, for more information on your County, contact us.
4. Attend a HUD approved first time home buyer education class.
Unlike many of the other down payment assistance programs for first time home buyers, you can use the 1% down payment program on bank owned homes, short sales, and even new homes are eligible.
For more inofrmation on the 1% down payment program for California first time home buyers, click here
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