California First-Time Home Buyer | 2024 Programs
For California home buyers, a good place to start looking for assistance is the California Housing Finance Agency (CalHFA). This agency offers a wide range of first-time home buyer loan programs at its own special interest rates.
CalHFA MyHome Assistance Programs:
Qualifying home buyers could borrow up to 3.5% toward their down payment and up to 3% for closing costs under the CalHFA MyHome Assistance Program.
*These are loans (a.k.a. “second mortgages” or “junior loans”) rather than grants. However, they’re deferred-payment loans. That means you don’t have to make monthly payments. Instead, you pay back the whole amount (plus interest) when you move, sell, refinance, or otherwise change the ownership of your home.
100% VA loan: Only for veterans and active-duty service members, the VA mortgage offers a zero-down-payment option. Minimum credit score varies by lender but often 620. There’s no ongoing mortgage insurance after closing. These are arguably the best mortgages available, so apply if you’re eligible
100% USDA loan: For those on low-to-moderate incomes buying in designated rural areas. Zero down payment required. Credit score requirements vary by lender but often 640. Low mortgage insurance rates.