Owning a home is the American Dream, but it is a process that can be confusing, expensive, and can take a long time. One of the most common misunderstandings for first-time buyers is having to save for a costly downpayment.

Luckily, many first-time home buyers programs help you with that.

There are federal, State, and local programs that are available in most states, including California, that can aid in down payment assistance, assistance with closing costs, and tolerant credit requirements.

Moreover, these programs are easily accessible, and you can apply for these programs online or in person.

Before we discuss Brentwood, CA, first time home buyer programs, let’s define what qualifies a person(s) as a first time buyer:

Who qualifies as a first-time homebuyer?

Now that you understand who qualifies let’s discuss 8- types of programs available to buyers in the Brentwood, CA area.

First-time homebuyer

1. CalHFA FHA Loan Program:

The federal program that assists home buyers falls under the guidelines of the Federal Housing Administration, or FHA, which is part of the U.S. Department of Housing and Urban Development.

The California agency that administers these opportunities is known as CalHFA, and these agencies can make your dream of owning a California home come true regardless of whether you have a less-than-perfect credit score.

This type of loan program is fully guaranteed by both the state and federal agencies, making them popular among mortgage lenders, and an FHA loan is the most common among first-time home buyers. This is because they are more accessible than conventional loans.

While most traditional loans will ask for a down payment, it’s not always required. Just keep in mind that the lower the down payment, the more you’ll have to purchase mortgage insurance to qualify and keep the loan.

Requirements for an FHA loan:

The following is needed to purchase a property using the CalFHA program:

2. CalPLUS FHA Loan Program

The CalPLUS FHA loan Program is FHA-insured and has a fixed interest rate in installments with a maximum 30-year term. This should include a Zero Interest Program(ZIP) and a closing cost assistance program, known as GAP loans.

GAP loans (known as DAP in Brentwood) provide qualifying first-time buyers with additional funds for closing costs and other expenses that may occur with purchasing a home.

Requirements of Loan

3. CalHFA VA Loan Program

VA loans are a type of loan that is insured by federal and state agencies and are available to veterans and active-duty service members. They provide qualifiers with a zero-down payment option and are fully guaranteed loans through private lenders, not the Department of Veterans Affairs, which makes VA loans.

Requirements to qualify for a VA loan

4. CalHFA USDA program

For first time buyers in rural settings, there is an opportunity to explore loan programs under the USDA. This homeownership program offers loans and encourages people in small communities to own homes, and The United States Department of Agriculture’s Rural Development Program issues these loans.

In California, this program is administered as a part of the CalHFA program under USDA requirements.

Requirements for a USDA home loan

USDA loans have the lowest rates, making them more convenient than conventional mortgages.

USDA home loan

5. CalHFA Conventional Loan Program

While some first time buyer programs don’t require a down payment, a CalHFA Conventional Loan Program provides a fixed interest rate with a maximum 30-year term, but has a requirement of at least a 3% down payment.

There are additional requirements like having to take a homebuyer education course to qualify, but having the security of a fixed 30-year mortgage is a great option for first time buyers.

Requirements for a CalHFA Conventional Loan

It’s good to know that to maintain your qualifications with CalHFA, there are income limits that need to be met every year.

6. Brentwood Down Payment Assistance Program

To aid with down payment and closing cost assistance, Brentwood, CA offers a program to provide small loans of a maximum of $10,000. This program is known as Down Payment Assistance Program (DAP) but has limited funds available, so one needs to apply early.

For Brentwood CA first time home buyers, there are some requirements to qualify for the loan. These requirements include:

7. CalPLUS Conventional Loan Program

CalPLUS Conventional Loan Program is a fixed interest rate loan with slightly higher interest rates than a traditional loan, spread over 30 years. It is combined with the Zero Interest Program to help with the down payment.

Requirements for a CalPLUS loan

Remember, you will need a minimum 620 credit score and a 20% down payment to void mortgage insurance.

8. Forgivable Equity Builder Loan

The California Housing Finance Agency(CalHFA) offers this loan program to help first-time homebuyers get equity in their home. Residents from California can borrow up to 10% of the original price of the house with a 0% interest rate. If you reside in the home for 5 years, the loan is forgivable making it an incredible option for first time buyers to receive assistance.

Requirements to qualify for the Forgivable Builder Loan

Conclusion

owning a home in California

For many people, buying and owning a home in California is scary and confusing, especially in a competitive market like what we have in California.

By understanding the opportunities available to Brentwood CA first time home buyers, you should have a better understanding of what options are available to you and how to qualify for a loan so that you can achieve a piece of the American Dream.

And to understand the market, you should be working with experienced, knowledgeable real estate pros like at Krista Homes.

Our experienced team will help guide and educate you about the different programs and recommend lenders that will help you select whichever program you’re eligible for.

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