California First-Time Homebuyer Programs
Let’s be honest. At first glance, the homebuying process can seem quite overwhelming and complicated. Who can you trust? How much do you need to save for a down payment? Is your credit score high enough? We have some good news. But, before we jump into some of the great programs available to California first-time homebuyers, let’s first define who falls into this category.
It may be obvious that individuals who have never owned a home would qualify, but did you know that according to the California Housing Finance Agency (CalHFA), you can also qualify if you have not owned or occupied a home in the last 3 years? That’s right! Now let’s cover some of the great programs.
California First-Time Homebuyer Programs
CalHFA offers several programs to assist first-time homebuyers. In fact, they just increased their income limits at the start of 2018 so more buyers may qualify! Our team at American Pacific Mortgage is an approved CalHFA-approved lender and our mortgage experts can help you take full advantage of these programs along with our APM Specialty Loan Programs.
Here are a few ways they have helped many first-time homeowners today:
First Mortgage Programs
- Conventional: A conventional loan with a fixed rate
- CalPlus Conventional: A conventional loan with a slightly higher fixed rate, but combined with the Zero Interest Program for closing costs.
- FHA: An FHA-insured loan with a fixed rate.
- CalPlus FHA: An FHA-insured loan with a slightly higher fixed rate, but combined with the Zero Interest Program for closing costs.
Down Payment Assistance Programs
- MyHome Assistance Program: A deferred-payment down payment loan that can be up to 3.5% of the purchase price or appraised price of the home (whichever is less). Payments on this assistance can be deferred until the home is sold, refinanced, or the mortgage is paid in full.
- Extra Credit Teacher Home Purchase Program: A deferred-payment down payment loan for teachers, administrators, school district employees and staff members working for any California K-12 public school (including Charter & Continuation schools). The amount can be up to $7500 or 3.5% of the purchase price (up to $15,000 or 3.5% in high cost areas). Payments on this assistance can be deferred until the home is sold, refinanced, or the mortgage is paid in full.
Mortgage Certificate Tax Credit Program
A federal credit that may enable first-time homebuyers to convert part of the annual mortgage interest into a direct dollar for dollar tax credit on tax returns.
APM Specialty Loan Programs
- Keys on Time: Get pre-approved and shop for a home with confidence knowing you have preliminary approved financing. It will help you to beat out other bidders, as a seller knows you have already been pre-approved for financing and can close on or before close of escrow. If you don’t close on time, you could receive a closing cost credit of $895.
- Lock and Buy: Lock in your interest rate before you have a purchase contract to be protected against rising interest rates. (Certain fees may apply.)
We hope the above programs and resources will help get you on the path to homeownership. We’re proud to offer clients and exceptional experience in buying or refinancing!
Have a question? Give us a call at (707) 449-4777 or request a quote today.
Restrictions may apply. You do not have to be a partner employee to receive the credits. The credit towards closing costs has no cash value and will be applied at the close of escrow. This is not a commitment to lend. Borrowers may not qualify for certain loan programs or for the full credit of $750. American Pacific Mortgage Corporation is licensed by the Department of Business Oversight under the CRMLA. NMLS #1850. The “Keys on Time” program is a limited guarantee that APMC will provide a closing cost credit of $895 if, due to some fault on
the part of APMC, its originators or other APMC staff, a purchase transaction does not close until a date after the originally stated close of escrow date. The “Keys on Time” limited guarantee does not apply if the purchase transaction fails to close on or before the anticipated close of escrow date due to events/circumstances beyond APMC’s control, including but not limited to, delays caused by: an unacceptable or unexpectedly low appraisal value on the subject property, acts or omissions by the escrow or title company, second lien holder approvals, short sale approval, or loan conditions imposed by the lender that, despite reasonable diligence by APMC, are not met by any party in a timely manner. The “Keys on Time” limited guarantee trigger begins when the initial loan package is received by APMC’s Fulfillment center The complete loan package must be received in the APMC
Fulfillment center a minimum of 18 days prior to the COE date. Exclusions: The limited guarantee does not apply to the HARP program, reverse mortgages, FHA 203k, USDA, non-delegated jumbo products or any loans that require prior approval from an investor. The limited guarantee applies to purchase transactions only and is not available in Oregon. All programs are subject to borrower and property qualifications. Rates, terms, and conditions are subject to change without notice.