A new state program aimed at first-time homebuyers launched Monday aims to ease the process. Homebuyers can receive financial assistance equal to 20% of a home's purchase price through California Dream For All. When purchasing your first home, those funds can be used for a downpayment and closing costs.
Program Details:
Conventional financing program with a maximum loan amount of $1,089,300 (1 unit), $1,394,775 (2 units), $1,685,850 (3 units), and $2,095,200 (4 units) in high-cost counties such as Orange County.
First-time buyers (Borrowers cannot have had primary ownership in the prior 3 years from pursuing the program).
Down payment assistance up to 20% of the purchase price (100% CLTV financing available).
The maximum income limit in Orange County for this program is $235,000 on this program.
Payment on the “silent” 2nd mortgage “down payment assistance loan up 20% of purchase price” is deferred through the life of the 1st mortgage and is at 0 interest rate.
Upon sale or transfer of the property CalHFA will share in the “gross” appreciation of the property (subsequent sale price less original sales price) not to exceed 20% of the gross appreciation…depending on borrower’s income at the time of original purchase.
Homebuyer counseling online webinar is required for all borrowers that pursue the program.
No purchase price limits.
The current 30-year fixed rate is 6% - 6.375% based on borrowers qualifying income.
A great opportunity for First Time Buyer’s to achieve their home ownership dreams!
