California New Home Buyer Programs in 2020 – Buying a home is a huge investment and the biggest investment most people will make in their lifetime. If you are buying a home for the very first time it can seem daunting and quickly become overwhelming, especially just the thought of securing a home loan. Luckily for first-time buyers in California, the California Housing Finance Agency ( CalHFA) offers several loan programs to help first-time buyers finance a home. 
Here are some first-time California New Home Buyer Programs in 2020:
My Home Assistance Program
A deferred payment subordinate loan focused on helping low to moderate-income first-time buyers with making their down payment or covering closing costs on a CALHFA loan. You may be wondering what subordinate means. It’s simply a shorter way of saying that the money borrowed will not be required to be paid back until the home is sold, refinanced, or the mortgage is paid in full. This program is limited to 3.5% of the home’s purchase price or appraised value depending upon which is lower. This program can be combined with other payment assistance or grants.
California New Home Buyer Programs in 2020 – CalHFA Zero Interest Program
This program helps to make loans more affordable with closing cost assistance. It offers to pay a portion of the closing costs on CalPlus Conventional and CalPlus FHA loans by providing 4% of the total loan amount in the form of a second loan with no interest. The payments for the loan are deferred unless you sell, refinance, default on the first loan, or transfer title to someone else. In these cases, the loan will be expected to be paid in full.
School Teacher and Employee Assistance Program
This is another deferred payment subordinate loan to help pay for down payments or closing costs. This program, however, is reserved just for teachers, school administrators, school district employees, and other staff members of California K-12 public schools. Charter school and county/continuation school employees are also eligible.
Borrowers using this program may combine the assistance with other programs like the Fannie Mae Community Seconds, but may not combine it with the My Home Assistance Program from above.
Cal-EEM + Grant Program
This is a program that is an FHA-insured Energy Efficient Mortgage. It is eligible to first time as well as repeat home buyers. It is a 30 year fixed rate term. The program is to help borrowers make energy-efficient improvements that end up to be over the maximum amount allowed by the FHA. The mortgage is combined with a grant that covers up to 4% of the total loan amount. This program can be combined with the My Home Assistance Program or the School Teacher and Employee Assistance Program.
Eligibility Requirements
- The property must be located in California and be the borrowers first primary residence until the property is sold or refinanced
- Most loans require the borrower to be a first-time home buyer and a U.S. citizen, permanent resident, or qualified alien
- A minimum credit score of 640 (most cases there are exceptions)
- Must meet all income and sale price requirements of the lender and the mortgage insurer
- The borrower must take a home buyer education course with proof of completion through an approved program
- No leaseholds, land trusts, or co-ops are allowed
- Assistance is only given on properties 5 acres or less
- Each program may come with its own specific additional requirements
For more information on first-time homebuyer assistance in California please contact me anytime. California New Home Buyer Programs in 2020