Looking to buy a house in California or Arizona and limited on money for the down payment. Here are three purchase loan programs that you can explore.

In this Podcast, we will review the VA home loan, USDA Home loan, and Down Payment Assistance loan programs. I welcome the opportunity to discuss with you these three loan programs to be able to buy a house in Arizona or California. 

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 

What is Down Payment Assistance?

Top down payment assistance home loan programs in California

• 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

• 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

• 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

• 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.

• 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

• First-time Homebuyer Only
• You must meet income and purchase prices restrictions set by the program as well. 
• Primary residence only

• 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.

• 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 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.

• 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.

• 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.

• 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.

• 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

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. 

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.