First Time Home Buyer Loans in California
First time home buyer programs are a combination of loan types and down payment assistance designed to help people buy their first home with less money out of pocket.
If you have never owned a home, or you have not owned one in the past 3 years, there are programs in California that can help with your down payment, closing costs, or both.
Who it's a good fit for
First time home buyer programs are for anyone who has not owned a home in the past 3 years. You do not have to be a brand new buyer. If you owned a home years ago and are starting over, you may still qualify. These programs are especially good if you have limited savings for a down payment, your income is in the moderate range, and you are buying in an area where the programs are available. Many programs can be combined with FHA or conventional loans.
Who it's not a fit for
These programs may not work if you currently own a home, your income is above the program limits, or the home you want to buy exceeds the program purchase price limits. Some programs also require you to live in the home for a certain number of years, so they are not a fit if you plan to move soon. If you have 20 percent saved and strong credit, you may not need assistance at all.
Requirements
First-Time Buyer Status
No home ownership in the past 3 years (some programs have different definitions)
Income Limits
Vary by program and county. Some programs allow incomes up to $200k+ in high-cost areas
Purchase Price Limits
Vary by program and county
Credit Score
620 or above for most programs (580 for FHA-based programs)
Pros and cons, stated honestly
Advantages
Things to consider
Costs involved
The costs vary widely depending on which programs you use. Some programs offer grants that do not need to be repaid. Others offer deferred second mortgages (silent seconds) that sit behind your primary loan with no monthly payment, due only when you sell or refinance. Some programs offer a shared appreciation model where the state shares in the increase in your home value. I will walk you through every program available in your area and show you the exact costs, benefits, and strings attached to each one.
The process and rough timeline
Check Your Eligibility
1 dayI check which programs you qualify for based on your income, location, and first-time buyer status.
Get Pre-Approved
3 to 5 daysWe combine your first-time buyer program with the right primary loan (FHA or conventional) and get you pre-approved.
Find a Home Within Limits
Varies by buyerYou shop for a home that fits within the program purchase price limits. I help you understand the limits.
Underwriting and Approval
10 to 14 daysThe lender underwrites both your primary loan and the assistance program. I coordinate both.
Close with Less Out of Pocket
30 to 45 days totalYou sign, the loan funds, and you get your keys with less money out of pocket than a standard purchase.