With sky-high home values, it can be difficult to become a homeowner for the first time in California. Fortunately, there are a number of first-time homebuyer programs that can help. Many are through the California Housing Finance Agency, as the ones highlighted below are.
CalHFA Conventional Program
The CalHFA Conventional Program offers low- to moderate-income homebuyers a fixed-rate, 30-year conventional loan at a competitive interest rate. While not restricted to first-time homebuyers, the program can be a good fit for new homeowners and matches favorably with Federal Housing Administration (FHA) loans in terms of down payment requirements and ongoing costs like mortgage insurance.
Who qualifies?
Eligible applicants must meet income limits and complete homebuyer education counseling. The home must be a single-family home or condo.
CalPLUS Conventional Program
The CALPLUS Conventional Program is similar to the CalHFA program, but it features a higher interest rate in exchange for financing closing costs with a second loan at zero interest.
Who qualifies?
Eligible applicants must meet income limits and complete homebuyer education counseling. The home must be a:
- Primary residence
- Single-family home or condo
MyHome Assistance Program
The statewide MyHome Assistance Program offers first-time homebuyers a second loan that helps cover a down payment and closing costs.
Payments on these loans are deferred and cover up to 3.5% of the purchase price on an FHA loan or 3% on a conventional loan. The loan comes due when the home is sold, completely paid off or refinanced.
Who qualifies?
Eligible first-time homebuyers must meet income limits and complete homebuyer education counseling. The home must be a single-family home or condo.