A down payment for a home can be hard to save for, especially in high-cost areas like California.  So how can you get into a home without tapping yourself out financially?

That’s where down payment assistance comes into play.  These programs were created to help low to moderate income buyers, buyers in high-cost areas or underserved communities purchase homes.

How Does It Work?

Most people borrow a large sum of money to purchase a home.  This type of borrowing is called a first mortgage loan.  There are also mortgage loans that help cover down payment or closing costs.  These are called junior loans.

There are multiple down payment assistance programs to help cover costs.  Some are junior loans and others are grants/gifts.  The grants/gifts do not need to be repaid but will cost you more in terms of interest charges over the life of the loan.

Qualifying for a Down Payment Assistance Loan

• Down Payment Assistance Loans are for primary residences, non-occupant co-borrowers are not allowed.

• U.S. Citizen or permanent resident.

• Must meet minimum income requirements for the program.  (Income limits vary by county.  Contact us for more information.)

• Minimum credit score of 640.

• Meet guidelines for first mortgage program.

• Complete homebuyer education counseling through an eligible homebuyer counseling organization.