The California Down Payment Assistance Program was designed to assist First Time Home Buyers with their down payment or closing costs. The California Down Payment Assistance Program is intended for low to moderate income First Time Home Buyers purchasing a primary residence.

 

Down payment assistance provided by The California Down Payment Assistance Program is a low fixed interest rate second mortgage, with a maximum amount of 5% of the purchase price or appraised value, whichever is lower. The second mortgage is deferred until the home is sold or refinanced.

 

Many counties and individual cities offer down payment assistance programs to prospective buyers as well. These programs may be combined with the California Down Payment Assistance Program. To find a down payment assistance program in your location contact your counties Housing and Development Agency.

 

Some qualifications for The California Down Payment Assistance Program are:

 

·        Borrower must be a First Time Home Buyer

 

·        The property must be used as a primary residence (No non-owner occupant co-borrowers)

 

 

·        Borrower’s income cannot exceed the moderate income established by the county in which the borrower is purchasing.

 

·        Borrower must meet credit guidelines.

 

·        Maximum CLTV cannot exceed 102%