The California Housing Finance Agency (CalHFA) offers a down payment assistance loan program called MyHome Assistance. This program can help first-time homebuyers purchase a home in California with a lower down payment.
How does the MyHome Assistance Program work?
The MyHome Assistance loan is a deferred-payment loan that provides up to 3% of the purchase price or appraised value to assist with down payment and/or closing costs. The loan is repaid at a fixed rate of 5% over 30 years. (subject to changes)
Who can qualify for the MyHome Assistance Program?
To qualify for the MyHome Assistance loan, borrowers must meet the following criteria:
- Be a first-time homebuyer
- Have a credit score of at least 620
- Have a debt-to-income ratio of no more than 50%
- Purchase a single-family home, condominium, or townhouse in California
What are the benefits of the MyHome Assistance loan?
The MyHome Assistance loan can help first-time homebuyers purchase a home with a lower down payment. This can save borrowers thousands of dollars in upfront costs. The loan also has a fixed interest rate and a long repayment period, which can make it more affordable to repay.
What are the drawbacks of the MyHome Assistance loan?
The MyHome Assistance loan does have some drawbacks. The loan must be repaid over 30 years, which can add up to a significant amount of interest. The loan also has a 5% interest rate, which can be higher than some other types of loans. (subject to change)
How to apply for the MyHome Assistance loan
To apply for the MyHome Assistance loan, borrowers must contact a participating lender such as Tried & True Home Loans. The lender will review the borrower's financial information and determine if they are eligible for the loan.