assistanceCalifornia is a Buy State

California home values continue to rise at over 20% in 2013, and more owners are starting to sell!

This is great news for homebuyers tired of fighting tooth and nail for the few homes available for sale in your community.

With foreclosures and short sales fewer and further between, home buyers have the pleasure of working with real people again, and not banks.

Live Online Class Schedule

It can be very confusing knowing which is the best program, what can be used with what other programs, which limits do you follow?  We have a couple of live online classes scheduled in the next couple of weeks.  CLICK HERE to see Current Online Class Schedule

Low Interest, No Interest, Don’t Pay it Back

The programs we are going to discuss here are all available throughout the entire State of California.

CalHFA FHA – Is a first mortgage loan for low to moderate income, first time homebuyers.  This is one of two first mortgage programs offered by the State of California.  Interest rates are set by CalHFA and published online here.

CalPLUS + ZIP – CalPLUS is the same first mortgage as the CalHFA FHA, however, with a little higher interest rate, you are automatically eligible for ZIP.  ZIP stands for Zero Interest Program and can be used with ECTP & CHDAP (just not at the same time).

BCA – The Broadview Community Access is a FHA Alternative loan that offers reduced mortgage insurance to eligible borrowers.  This conventional qualifying qualifying limits borrower’s income from exceeding 140% of the Area Median Income for the County they are buying in.

CalHFA CHDAP – The State of California Homebuyers Downpayment Assistance Program is the only CalHFA program available to use with a non-CalHFA first mortgage.

ECTP – The Extra Credit Teacher Program has returned with newly expanded guidelines making it available even more California Teachers, Staff, School District Employees.  This program offers between $7,500 to $15,000 in high cost areas to eligible borrowers working in low API (1-5) schools or districts.

CHF Platinum Grant – This homebuyer grant is available throughout the entire state of California.  You must use a CHF first mortgage program, and interest rates are set by Grant Program.  The CHF Platinum Grant does not have payments and is not paid back

Qualifying Highlights

As with most down payment, or first time homebuyer programs, expect to find some of these common requirements:

  • First Time Homebuyer Requirement – Ask about Targeted Area and Veteran Exceptions
  • Income limits – There are 4 different income limit guidelines out of the 6 programs listed above.  Some limits will also vary based on how many will live in the home.
  • Sales Price Limits – Limits set by County for most programs.  Some programs will offer higher limits in federally designated target areas

How it All Fits Together

Many of these loan programs can be used along with each other, or even any FHA or Conventional loan.  Homebuyer specialists can

CalHFA FHA – Can be used with the Extra Credit Teacher Program (ECTP), or CHDAP, but not at the same time.

CalPLUS + ZIP – Borrowers eligible for CalPLUS are automatically eligible for the ZIP  Zero Interest Program. Can also be used with the Extra Credit Teacher Program (ECTP), or CHDAP, but not at the same time.

BCA – Can be used with CHDAP for 100% Financing until November 16th, 2013.  Can go to 98% Loan to Value after that.

CalHFA CHDAP – Can be used with CHF Platinum Grant, CalHFA FHA, CalPLUS with ZIP, Broadview Community Access, any FHA or Conventional loan as allowed by first mortgage guidelines on community seconds.  CHDAP cannot be used with the ECTP Extra Credit Teacher Program

ECTP – Can only be used with either the CalHFA FHA or CalPLUS first mortgage loans offered by CalHFA.  ECTP can be coupled with ZIP when used with the CalPLUS mortgage.

CHF Platinum Grant – Can be used with a CHF first mortgage which can be either FHA, VA or USDA.  The interest rates for this program are set by the administrators of the program daily.

Live Online Class Schedule

It can be very confusing knowing which is the best program, what can be used with what other programs, which limits do you follow?  We have a couple of live online classes scheduled in the next couple of weeks.  CLICK HERE to see Current Online Class Schedule

6 California Buyer Assistance Programs You Need to Know was originally published on FindMyWayHome.com.

Published by Diego Loya

Diego Loya is a Realtor - Broker at Home Living Real Estate Brokerage, a Orange County full services real estate company. Over the past 12 years, Diego has helped homeowners sell and buy their homes. He's loves educating and empowering real estate consumers. You can find him on Google, Facebook and Twitter.