Hey there! I know the process of buying your first home in California can feel like a huge challenge, especially with all those upfront costs. But don’t worry, I’ve got some great info that might help! There’s a program called the CalHFA MyHome Assistance Program that’s designed specifically to help first-time homebuyers like you by providing financial assistance for your down payment and closing costs. Let me break it down for you so you can see how it works and if it could be the solution you’re looking for!

Program Overview

The CalHFA MyHome Assistance Program is a statewide initiative funded by the California Housing Finance Agency (CalHFA). It provides financial assistance to first-time homebuyers in California to help with their down payment or closing costs.

Eligibility Criteria

• First-Time Homebuyer Requirement: You must be a first-time homebuyer, meaning you haven’t owned a home in the past three years.
• Income Limits: Your income must be within the limits set by CalHFA for your county. For example, in Los Angeles County, the limit for a household of four is about $180,000.
• Credit Score: Typically, you’ll need a credit score of at least 660, depending on the loan type.
• Primary Residence: The home you purchase must be your primary residence.
• Homebuyer Education: You’re required to complete a homebuyer education course.
• Property Type: Eligible properties include single-family homes, condos, and manufactured homes, all subject to local price limits.

Benefits

• Down Payment and Closing Cost Assistance: You can get up to 3% of the purchase price or appraised value (whichever is less) in the form of a deferred-payment loan.
• No Monthly Payments on Assistance Loan: This loan is deferred, meaning you don’t make any payments until you sell, refinance, or transfer the property.
• Stackable Programs: You can combine this assistance with other CalHFA programs, such as the CalPLUS loan, for even more financial support.

Potential Drawbacks

• Repayment Required When Selling or Refinancing: While there are no monthly payments, you will have to repay the assistance when you sell, refinance, or transfer the home.
• Income and Property Limits: The program’s income and property price limits can be restrictive in high-cost areas like San Francisco or Los Angeles.
• First-Time Homebuyer Restriction: If you’ve owned a home in the last three years, you won’t qualify.

Application Process

1. Find a CalHFA-Approved Lender: You’ll need to apply through a lender approved by CalHFA.
2. Pre-Approval: Get pre-approved for a mortgage, including the down payment assistance.
3. Complete Homebuyer Education: Take the required homebuyer education course.
4. Submit Documentation: Your lender will guide you through submitting the necessary documents, such as proof of income and credit history.
5. Close on Your Home: Once approved, you’ll close on your home, with the MyHome funds applied toward your down payment or closing costs.

Geographic Availability

This program is available statewide in California.

Pros

• No Monthly Payments: The deferred-payment feature is a major perk—no monthly payments on the assistance loan until you sell or refinance.
• Generous Assistance: The program offers up to 3% of the purchase price, which can make a big difference in a high-cost market like California.
• Combine with Other Programs: You can stack MyHome with other CalHFA programs for even more financial help.

Cons

• Repayment Required: You’ll need to repay the loan when you sell, refinance, or transfer the home, which could impact your net proceeds.
• Income and Price Limits: These restrictions might be limiting, especially in pricier areas of the state.
• First-Time Buyer Limitation: If you’ve owned a home in the past three years, you won’t qualify.

Category

California

Sources

• CalHFA MyHome Assistance Program Overview
• CalHFA Income Limits by County