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Buying a house in California?
Here is what you need to know.
Down Payment: The Biggest Obstacle to Homeownership
Many surveys indicate that lack of funds for a down payment is the top obstacle with homebuyers in California. We understand that. We are here to help buyers overcome this obstacle.
Down Payment Assistance Options
Californians looking to buy a new home might find the loan process difficult, stressful, and confusing, especially if they don’t have enough money in savings. Thankfully, California offers many down payment assistance programs.
We offer comprehensive information for community second mortgages, grants, and low down mortgage programs. Don’t let down payment costs inhibit your dream of home ownership. Down payment options are available below.
List of available down payment assistance programs in California
What are California home loan grants and how do they work?
What are California down payment assistance second mortgages?
First Time Home Buyer Programs in California
There are a number of government funded first time home buyer programs in California. Many counties and cities have specialized departments that work with local housing agencies to offer down payment and closing cost assistance. These programs work in cooperation with approved lenders to help buyers qualify for a mortgage, and typically require that you first talk to a participating lender in order to prequalify for one of their accepted loan programs.
Should you rent or buy a house in California?
Which California Mortgage Program is Best for You?
There are a variety of mortgage programs available in California that accept down payment assistance grants. Each program has different guidelines regarding income, assets and credit history. Some programs allow more down payment assistance than others. An experienced mortgage professional can help you find what best fits your needs.
Mortgage programs that accept down payment and closing cost assistance
California FHA loan limits and conventional loan limits for 2020.
The 2020 conventional loan limit in California is $510,400.
Credit Challenges
Since the mortgage crisis, virtually all loans for people with bad credit have disappeared. However, unconventional loans are slowly making comeback. Many lenders are willing to lower their credit score requirements as their underwriting guidelines focus on a buyer’s ability to repay the loan. Currently, for California down payment assistance, you need a 640 minimum credit score to qualify.
Your credit history is just one of eight factors that lenders focus on when deciding if you will be able to pay your mortgage. Other factors include:
- Current or reasonably expected income or assets
- Current employment status
- Monthly payment on the covered transaction
- Monthly payment on any simultaneous loans
- Monthly payment for mortgage-related obligations
- Current debt obligations
- Monthly debt-to-income ratio or residual income
- Credit history
Don’t let credit challenges hinder your home search. California lenders will work to help you qualify.
If you’re not sure how credit scores work, read our article on how credit scores are established.
California Home Buyer Assistance Service
We’ve created a free buyer concierge service for California homebuyers that connects you with real estate professionals who will protect your interests.
- Guidance throughout the home buying process
- Insights into the best neighborhoods
- Down payment and closing cost assistance programs
- Superior real estate agents
- Trustworthy title and inspection companies
- And more!
Find out more about e-Homes Realty’s buyer concierge service.
We can help you find the best down payment assistance options for you.
