There are two programs that offers down payment assistance that are very popular in the mortgage industry :

1. CalHFA Government Loans (FHA): MyHome offers a deferred-payment junior loan of an amount up to the lesser of 3.5% of the purchase price or appraised value to assist with down payment and/or buyer’s closing costs.

2. CalHFA Conventional Loans: MyHome offers a deferred-payment junior loan of an amount up to the lesser of 3% of the purchase price or appraised value to assist with down payment and/or buyer’s closing costs.

Here is the Program Eligibility:

Review the guidelines below for both Borrower and Property Requirements to determine if you may be eligible to apply for the MyHome Assistance Program.

Borrower Requirements:

You must Be a first-time homebuyer.

Occupy the property as a 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 https://www.calhfa.ca.gov/homeownership/limits/income/income.pdf you can visit https://www.calhfa.ca.gov/ for this program.
*In the case of conflicting guidelines, the lender must follow the more restrictive.

Property Requirements:

Be a single-family, one-unit residence, including approved condominium/PUDs

Guest houses, granny units and in-law quarters may be eligible

Manufactured housing is permitted
Condominiums must meet the guidelines of the first mortgage

*In the case of conflicting guidelines, the lender must follow the more restrictive.

Interest Rate

What is the interest rate?

Interest rates will vary depending on your financial credit report, lender fees, and other factors. Interest rates can also change daily. We recommend that you check with a reputable lending company to receive an accurate rate quote for this program.

CalHFA does not lend money directly to consumers. CalHFA works through and uses approved lenders to qualify consumers and to make all mortgage loans. The fees you pay could be different depending on the lender and the program. Please check this link https://www.calhfa.ca.gov/homebuyer/apr.htm.

Who has to take this Homebuyer Education and Counseling course?

Only one occupying first-time borrower on each loan transaction.

How do I take this education and counseling course?

Online: https://calhfa.ehomeamerica.org/sponsor_user/sponsor_main and Counseling course is the only online course accepted by CalHFA. (fee: $99) Other online courses like Frameworks and HomeView are not acceptable because they do not provide a one-hour, 1-on-1 counseling follow-up session.
In-person or Virtual: Live Homebuyer Education and Counseling in-person or virtually though https://www.neighborworks.org/Homes-Finances/Homeownership/HomeOwnership-Center-Directory or any https://hudgov-answers.force.com/housingcounseling/s/?language=en_US
(fee: varies by agency)

How To Apply?

Since CalHFA is not a direct lender, our mortgage products are offered through private loan officers who have been approved & trained by our Agency. These loan officers can help you find out more about CalHFA’s programs and guide you through the home buying process.

Visit the https://www.calhfa.ca.gov/homebuyer/lenders.htm tab, to contact a loan officer in your area.

What documents should I have ready when contacting a loan officer?

When initially contacting a loan officer, you may want to have this list of documents and information available to help answer questions that they will ask you: