Home Loans California & Arizona



How much money do I need to buy a house? What is the amount of money do I need to put down for the down payment when buying a house on the USDA, VA, FHA or Conventional purchase home loan program.

Check out these videos about the USDA and VA home loan programs.

https://www.youtube.com/watch?v=NOtV-Bte3-Q

https://www.youtube.com/watch?v=030Vzk9GGrU

Nathan Rufty
Mortgage Loan Originator 

CA Call or Text: 909-503-5600

AZ Call or Text: 623-850-1210
eFax: 888-837-2861
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Email Me: Nathan@NathanRufty.com
www.NathanRufty.com
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Posted by Nathan Rufty on February 5th, 2020 7:09 AM

What is Down Payment Assistance?

As a home buyer in California the money you put for a down payment on your new home loan can be one of the largest hurdles for many first-time homebuyers in California. That's why the state of California offers several options for down payment and closing cost assistance. These type of down payment assistance programs are often called a second or subordinate loan. Most of California’s subordinate loans are "silent seconds", which means that payments on these loan are deferred so that the home buyer do not have to make a payment on this assistance until their home is sold, refinanced or paid in full, which helps you to keep your monthly mortgage payment affordable.

Top down payment assistance home loan programs in California


MyHome Assistance Program
This program is offered by CalHFA and it works to help home buyers reach a down payment for their mortgage loans. MyHome Assistance Program provides assistance with a federal credit that is available to first-time homebuyers. This tax credit allows buyers to convert a portion of their income into a dollar-for-dollar tax credit on their individual U.S. tax returns. While this is a federal program, the CalHFA can help you take advantage of this opportunity.

Borrower Requirements
  • Be a first-time homebuyer. See the definition of a first-time homebuyer.
  • Occupy the property as their primary residence, non-occupant co-borrowers are not allowed
  • CalHFA borrowers must complete homebuyer education counseling and obtain a certificate of completion through an eligible homebuyer counseling organization.
  • Meet CalHFA income limits for this program.
  • Meet the requirement of the lender and mortgage insurer / guarantor

Property Requirements
  • Sales price of the home cannot exceed CalHFA's sales price limits established for the county in which the property is located
  • Be a single-family, one-unit residence, including approved condominium/PUDs
  • Guest houses, granny units and in-law quarters may be eligible
  • Manufactured housing allowed when combined with a FHA first mortgage only and home must be on a permanent foundation

Brentwood Down Payment Assistance Program
The City of Brentwood offers first-time homebuyers the Down Payment Assistance Program (DAP), which provides funds that go toward the down payment and/or closing costs. Assistance comes in the form of a deferred payment loan program for first-time homebuyers. 

Requirements:
  • Borrower must be be a first-time homebuyers
  • Borrower must have an annual household income at or under 120 percent of the area median income
  • 3% of the down payment to be from the borrowers own funds

CalHome Program
The CalHome Program provides applicants up to 17 percent of the total property price for down payment assistance, and 4 percent (up to $10,000) in closing costs assistance. These funds come in the form of a loan with 3 percent simple interest per year, accrued annually.

Requirements
  • Only available to first-time homebuyers
  • All applicants must have an annual gross household income at or under 80 percent of San Diego County’s area median income, as determined by HUD.
  • 3% of the down payment to be from the borrowers own funds.
  • The program’s occupancy ratio mandates that there be no more than two people per living space.

California Homebuyer's Downpayment Assistance
The California Homebuyer’s Downpayment Assistance Program is a deferred-payment junior loan that grants applicants up to 3% of the purchase price or appraised value of the property, which can be put towards the down payment and/or closing costs. 

Requirements 
  • They must be first-time homebuyers
  • They must occupy the home as their primary residence
  • They are required to successfully complete a homebuyer education counseling course
  • Homebuyers’ income must fall under certain CHDAP limits, depending on the type of mortgage they have
  • Applicants must meet the requirement of their lender and mortgage insurer

Downey First-time Homebuyer’s Program
The City of Downey has partnered with the local housing non-profit organization Neighborhood Housing Services (NHS) to provide down payment assistance in the form of a $60,000 loan, via the Downey First-time Homebuyer’s Program.

Requirements
  • First-time Homebuyer Only
  • You must meet income and purchase prices restrictions set by the program as well. 
  • Primary residence only
 
Emeryville First Time Homebuyer Loan Program
?The First Time Homebuyer Loan Program that was established by the City of Emeryville  provides down payment assistance to households at or below moderate income. This initiative gets individuals out of the renter’s trap by helping them to pay the heavy, upfront costs of purchasing a home.

Requirements
  • Are single individuals or single parents who previously owned a house within the past three years with a previous spouse,
  • Are employees of the City of Emeryville
  • Are employees in the Emery Unified School District, or
  • Who previously owned a house with a domestic partner within the past three years but the domestic partnership has been terminated.

Extra Credit Teacher Home Purchase Program
The Extra Credit Teacher Home Purchase Program (ECTP) grants eligible applicants a deferred junior loan ranging between $7,500 and $15,000, which can only be combined with an eligible first mortgage loan from the California Housing Finance Agency.

Requirements
  • First-time homebuyers only
  • Employed in a county/continuation or high priority school in California 
  • Applicants must intend to continue work for three years continuously from the date of the loan in the school.
  • Borrowers are required to successfully complete a homebuyer education counseling course.


First Home Mortgage Program
Under the First Home Mortgage Program, applicants can receive up to 4 percent of the total first mortgage amount to be put toward paying the down payment and closing cost assistance. This assistance comes in the form of a grant, which has no repayment terms.

Requirements
  • First Home Mortgage Only. 
  • They must fall under the program’s income limits
  • Have a minimum FICO credit score of 640
  • Debt-to-income ratio not exceeding 45%. 
  • All applicants must attend a homebuyer education course, with certificates of completion dated 12 months prior to the closing of escrow.

GSFA Platinum Program
California’s Golden State Finance Authority (GSFA) created the Platinum Program, which provides low-to-moderate income California homebuyers with down payment and/or closing cost assistance to help them achieve their goals of purchasing a home.

Requirements
  • Primary residence only
  • All applicants must fall under the Program’s Income Limits
  • Have a credit score of at least 640
  • Maximum debt-to-income ratio of 50 percent
  • No requirement for applicants to be first-time homebuyers.
Down Payment Assistance Home Loan Programs in California

Monterey County Down Payment Assistance Program
The FTHB Program provides down payment assistance in the form of a loan, the maximum amount of which may not exceed the lesser of the maximum HOME subsidy limit, 20 percent of the purchase price, or the amount needed as determined by underwriting criteria. The maximum loan amount will never exceed the amount of the primary loan.

Requirements
  • Applicants must be residents of Monterey County
  • First-time homebuyers only?Annual household income falls at or under 80 percent of the area median income for Monterey County
  • All borrowers must be able to contribute at least 3.5 percent of the purchase price from their own funds toward the down payment.

Riverside Down Payment Assistance Program
CalHome Grant in order to help individuals achieve their dreams of homeownership. This program funds the Riverside Down Payment Assistance Program, which provides first-time homebuyers up to $50,000 to help pay the hefty, upfront costs on their new homes.

Requirements
  • First-time home buyers only
  • They must have a combined household income that falls under 80 percent of the area median income for Riverside County
  • FICO Score of at least 580
  • Must be able to contribute at least 1 percent of the purchase price toward the down payment from their own liquid assets.

Santa Ana Downpayment Assistance Program
Santa Ana’s Downpayment Assistance Loan Program provides eligible applicants up to $40,000 to be put toward the down payment on their new home. These funds are available on a first-come, first-served basis, in the form of a zero-interest loan.

Requirements
  • First-time homebuyers only
  • Must have acceptable credit history
  • An applicant’s household annual income must fall at or below 80 percent of area median income

I know its a lot of information, but don’t worry, Nathan Rufty a specialist in Down Payment Assistance programs in California offers a free consultation, CALL NOW: (909) 503-5600
Posted by Nathan Rufty on July 30th, 2018 2:54 PM

Down Payment Assistance Home Loan Programs are not limited to First Time Home Buyers in California. Start Here to see what programs are available to buy a house. 

Click on this image below and complete the short inquiry form to see what available down payment assistance home loan programs you are eligible for here in California.



Looking to buy a house in California does not have to be a difficult process, that is why you need to call me and speak with a licensed loan officer about the proper step in the home buying process. 

There are 4 requirements to buying a home, income, credit and down payment, sometimes reserve are required as well.

Income needs to be supplied on traditional financing, this is income that is claimed and verified that has been reported on your tax returns with W2, Schedule C and E income.

Credit is determined by running a mortgage related credit report. There are 2 areas related to the credit report, the credit scores and what is in the body of the credit report. You may have a lendable credit report but something reporting negatively in the body of the report can hurt your ability to purchase property.

Down Payment can be as little as .5% down to no money down, this is factor by the home loan program you qualify for. The USDA and VA home loan programs do not require any down payment (depending on the purchase amount in a particular county with the VA home loan may require a down payment). The .5% down or any of the amount for the down payment can come from a down payment assistance loan, gift from a family member, retirement plan, 401K, selling an item of value, there are many ways to locate money for the down payment requirement.

Reserve requirements are based on the home loan program you wish to move forward on. Not all purchase loan programs require 2 months of the total mortgage payment and that is made the principle, interest, homeowner's insurance, property taxes and if applied, mortgage insurance, flood insurance and monthly HOA payment. Not all programs require this but can be a compensating factor to strengthen your loan request.

These requirement above are for traditional financing, we do not have the loan products available today like we had in 2005, 2006 and 2007 that caused the housing crash in 2009. Today offers much more stable purchase home loan programs that will prevent another major housing crash. The real estate industry does have up and down markets, that is the nature of the industry but with stable home loan programs we will not or should not see the effects of 2009. 

If you have the income, credit but lacking the full or all the down payment to own a home, you should still press forward to see you full purchasing power. With today's rent ever increasing and home is still very affordable in terms of monthly payment, you can own a home and pay closing in a monthly mortgage payment that you are in rent, then it is time to explore your loan options on purchasing a home.

There are many and I mean many down payment assistance home loan programs in the city, county and state you are looking to buy a house in.

Each city and county have available loan programs for a first time home buyers to take advantage of. Do not turn yourself down because you spoke to someone outside the mortgage industry because of what they said. If I have a medical issue, I go to a doctor not my buddy who works in the construction industry. The mortgage industry updates and changes underwriting standards it seems every 3 months, that is why you need to call me at 909-503-5600 to discuss your goals of owning a home.

I have been in the lending industry since 1988 and it is my duty to stay abreast of all the lending guidelines to serve my valued client with the best customer experience that I can. We can always find ways to gather money for the down payment if you have the income and credit to purchase a house.

It does not hurt to explore your options in buying a home, I welcome the opportunity to review your current financial situation and present you with options that best fits your needs and goals. The best part is, if you are not in the position to move forward then I will work with you on the steps to get you in the position to own a home here in California.

My name is Nathan Rufty and I am a licensed loan officer here in Rancho Cucamonga California and I look forward in speaking or meeting with you to start your path towards homeownership. You can reach me at 909-503-5600 (call or text) or email me at nathan@nathanrufty.com


Down Payment Assistance Home Loan Programs are not limited to First Time Home Buyers in California. Start Here to see what programs are available to buy a house. 
Posted by Nathan Rufty on July 19th, 2015 8:36 AM

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