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Down Payment Assistance in Fontana, California

There are many challenges for first-time homebuyers in Fontana; one of the biggest is coming up with the required down payment. First-time homebuyers typically do not have the advantage of second time buyers. Second time buyers often have equity from the sale of their homes or investments to draw from for a down payment. Fortunately, there are a variety of down payment assistance programs available in Fontana, California. 


There are numerous first-time home buyer programs offered through several home loan programs in Fontana which have several restrictions. These restrictions include but are not limited to income, sales price, and no homeownership. Also, all first-time home buyer programs require the purchaser to occupy the property, meaning that these types of loans cannot be used to purchase a 2nd home or for a vacation property.

List of Down Payment Assistance Programs in Fontana

FHA financing

Down payment assistance for FHA loans from private sources have been effectively eliminated since 2008. However the FHA and other public sources have somewhat filled the gap by offering various types of help for first-time buyers who need down payment assistance. A first time buyer can include a buyer who had no ownership in a principal residence during the three year period ending on the date of the purchase of the property. The FHA programs to find out about are the Affordable housing Programs or Homeowner Set-Aside Programs. Moreover, some banks are now more willing to work with borrowers who need down payment assistance.

FHA financing requires a minimum of 3.5% down. FHA allows the down payment funds for closing costs to be gifted from a family member or nonprofit organization. This financing type requires upfront and monthly mortgage insurance. FHA offers owner occupied financing only.

Veterans Home Loans (VA Loans)

Honorably discharged veterans or active-duty personnel in the US military who meet certain qualifications are eligible for zero down mortgage financing through the VA. This financing type has no monthly mortgage insurance but requires an upfront funding fee unless the veteran is disabled.

USDA financing

The USDA loan program is offered by the United States Department of Agriculture. This loan type offers zero down financing for owner-occupied properties in designated rural areas and has income limitations. USDA loans have an upfront and monthly fee. There are two types of USDA loans which include guaranteed housing loans and direct loans.