If you’re a first-time homebuyer in California and missed out on the CalHFA Dream For All program, don’t worry. There are other down payment assistance programs available to help you achieve your homeownership dreams.
MyHome Assistance Program
One option is the MyHome Assistance Program offered by CalHFA. The MyHome program provides first-time homebuyers with a deferred-payment junior loan to assist with down payment and/or closing cost expenses. This loan is only available in combination with the CalHFA’s first mortgage loan program. This program is a conventional loan program for low-to-moderate income first-time homebuyers.
The junior loan is only repayable if the borrower sells or refinances their home, making it an attractive option for many borrowers. Also, the amount of assistance varies based on the homebuyer’s income and the location of the property being purchased.
School Teacher and Employee Assistance Program (STEAP)
The STEAP program provides down payment and closing cost assistance to teachers, administrators, school district employees, and staff members who work at California public schools.
This program is also only available in combination with CalHFA’s first mortgage loan program. STEAP provides up to $15,000 in assistance to eligible borrowers. The loan amount is determined based on the location of the property being purchased and the borrower’s income.
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Federal Housing Administration (FHA) down payment assistance programs
The FHA offers several down payment assistance programs to first-time homebuyers. These programs provide grants or low-interest loans to assist with down payment and/or closing cost expenses. Some of the programs available include the Homeownership Opportunities Program, and the Good Neighbor Next Door program. The Homeownership Opportunities Program provides assistance to low-income and first-time homebuyers. The Good Neighbor Next Door program, which offers incentives to law enforcement officers, firefighters, emergency medical technicians, as well as teachers who purchase a home in a designated revitalization area.
Overall, these programs can be incredibly helpful to first-time homebuyers who may struggle with the upfront costs associated with purchasing a home. Furthermore, it’s important to research and understand the eligibility requirements and restrictions of each program to determine which one may be the best fit for your specific needs.
Despite the CalHFA Dream For All program running out of funds, don’t let that hold you back from achieving your homeownership goals. Explore your options with MyHome, STEAP, FHA, as well as other available down payment assistance programs.
Let’s talk about your options today!