First-Time Homebuyers

First-Time Homebuyer Assistance Programs

Purchasing a home is one of the greatest accomplishments many people make in their lives. Though it is a joyous occasion when the process is complete, beginning the journey can be scary. Choosing the right home financing is a complex process, and it requires a great deal of knowledge in the industry. That’s where we come in. Mark Avila Loans has been helping clients in Bakersfield, Sacramento, Placer County, and nearby California find the best-suited mortgages for their needs for many years. We know the programs that can help a first-time homebuyer succeed. When you’re ready to start the process, contact Mark Avila Loans and gain a true partner in financing.

There are a broad range of home loan options. Some are sponsored through the government and some are fully insured and funded through private lenders and banks. In addition to mortgages themselves, there are also programs and secondary loans that help mitigate the costs of financing.

CalHFA FHA Program

In our state, the California Housing Finance Agency is an organization that helps qualifying homebuyers through certain programs. The CalHFA FHA program is a mortgage loan insured through the Federal Housing Administration that has great, fixed interest rates over a 30-year term. It is a type of nonconventional loan because it is insured through the government, which also means it’s available to many clients who may not be eligible for conventional, privately insured financing.

The CalHFA FHA program is available to low and moderate-income clients who:

  • Will live in their financed homes as a primary residence
  • Complete a homebuyer education program and counseling and receive a certificate of completion
  • Do not make more than income limits set in each county. For Kern County, the limit for a single person is $50,300. For Sacramento and Placer Counties, the limit is $74,550. Limits are higher if there are more people in your family. If you desire to live in a different county, we can quickly determine the limit for you.

In addition to borrower requirements, there are also requirements for the property being financed. These loans can be used for single-family or single-unit homes and certain approved condominiums and manufactured homes. Like there are income limitations, there are also property value limits specific to each county. We can determine quickly what those limits are depending on where you live.

HomeReady Loans

Like FHA loans, HomeReady loans are a type of nonconventional financing. They are provided by Fannie Mae, a mortgage giant and government-sponsored entity that buys mortgages in bulk after they are bought through private lenders. HomeReady loans require just 3% down payment, and clients can stop paying mortgage insurance after they reach a loan-to-value (LTV) ratio of 80% (that is, they have paid off 20% of the loan).

Like the CalHFA and FHA program, these mortgages are also designed and reserved for clients with low to moderate income. Eligible borrowers:

  • Have at least a 620 credit score, although a credit score of 680 or higher may get better rates
  • Make no more than $75,200 in Sacramento or Placer Counties. There is no income limit in Kern County

If you think the CalHFA FHA loan sounds like the right program for you, we can see if you’re eligible today.

Down Payment Assistance

Collecting the funds necessary for a down payment requires some effort. If you are concerned about this part of the loan process, there are down payment assistance programs to consider. One popular one is the California Homebuyer’s Downpayment Assistance program. This is a deferred-payment loan that you get in addition to your primary mortgage to pay for up to 3% of your total loan value for a down payment. The cost of your down payment is added to the end of your loan payments rather than incorporated with your monthly payments, which saves you money in the beginning years of your loan. While this program can only be used for clients who have the CalHFA FHA loan, there are many others like it that can help ease the burden of a down payment.

Get Started Today

If you are a first-time homebuyer, the team at Mark Avila Loans is here for you. Contact us if you are considering purchase in Bakersfield, Sacramento, Placer County, or nearby California. We are here to answer your questions or schedule a consultation to get started.