First Time Homebuyers and Government Programs
First Time Homebuyers and Government Programs
This is good news for all of you first time home buyers out there. The government programs available are phenomenal. These government programs are intended for low to moderate income first time homebuyers. Here is a list of some options you can take advantage of.
California Homebuyer's Downpayment Assistance Program (CHDAP). which is designed to provide a deferred payment, simple interest rate junior loan of an amount up to three percent(3%) of the sales price or appraised value, whichever is less. The junior loan may be used for down payment or closing costs and may be combined with CalHFA or non-CalHFA conventional or government first mortgage loan.
High Cost Area Purchase Assistance Program (HiCAP). This is designed to help make homeownership a possibility for the first time homebuyers in some the California's higher cost counties. HiCAP is available only when combined with a CalHFA first mortgage program. In addition, CalHFA will permit homebuyers to use other CalHFA approved down payment assistance loans or grants to help in the purchase of the home.
Affordable Housing Partnership Program (AHPP). This is a joint effort between CalHFA and over 300 cities, counties, redevelopment agencies, housing authorities and nonprofit housing organizations. Low income first time homebuyers, who obtain direct financial assistance from a local government agency or locality with their down payment and/or closing costs, may be able to obtain a CalHFA below market fixed rate loan.
If purchasing a home has brought many ideas to your mind that have prevented you from moving forward. For example; "I don't have a down payment!","prices are too high”,” I don't make enough money!","My credit is bad!” Now is the time to take advantage of the market and become a first time home buyer with utilizing government programs.
Yancy Martin
Real Estate Finance