Hey there! Navigating the world of homeownership can be daunting, especially when it comes to gathering enough funds for a down payment. But don’t worry—Orange County offers several programs designed to assist first-time homebuyers like you. Let’s explore some of these opportunities to make your homeownership journey a bit smoother.

1. Orange County Mortgage Assistance Program (MAP)

Funding Source:

This program is funded by the County of Orange.

Eligibility Criteria:

• First-Time Homebuyer: Applicants must not have owned a home in the last three years.
• Income Limits: Household income must not exceed 80% of the Area Median Income (AMI). For example, a household of four can have an income up to $126,250.
• Property Location: The property must be in one of the eligible areas within Orange County, such as Brea, Cypress, Dana Point, and others.
• Owner Occupancy: The home must be the buyer’s primary residence.

Benefits:

• Financial Assistance: Provides up to $80,000 (not exceeding 20% of the purchase price) to assist with down payment and/or closing costs.
• Loan Terms: The assistance comes as a silent second mortgage with deferred principal and interest payments for the loan term.

Potential Drawbacks:

• Repayment Obligation: The loan must be repaid upon sale, transfer, or refinancing of the property.
• Limited Availability: Only specific areas within Orange County are eligible.

Application Process:

1. Homebuyer Education: Complete a HUD-approved 8-hour homebuyer education course.
2. Loan Pre-Approval: Obtain pre-approval for a first mortgage from a participating lender.
3. Application Submission: Submit a complete MAP application along with all required documents.
4. Property Inspection: Ensure the property passes necessary inspections for lead-based paint hazards and code compliance.
5. Loan Approval: Upon approval, funds are reserved, and you can proceed to close escrow.

For more detailed information, visit the Orange County Housing & Community Development website.

2. City of Santa Ana’s My First Home Program

Funding Source:

City of Santa Ana.

Eligibility Criteria:

• First-Time Homebuyer: Must not have owned a home in the last three years.
• Income Limits: Household income must meet specified limits based on household size.
• Property Location: Must be within the City of Santa Ana.
• Owner Occupancy: The home must be the buyer’s primary residence.

Benefits:

• Financial Assistance: Offers up to $120,000 in down payment assistance with a 0% interest rate.
• Loan Terms: Deferred payment loan with repayment due upon sale, transfer, or refinancing.

Potential Drawbacks:

• Repayment Obligation: The loan must be repaid upon sale, transfer, or refinancing.
• Property Restrictions: Not all property types are eligible.

Application Process:

1. Homebuyer Education: Complete an 8-hour HUD-approved homebuyer education course.
2. Loan Pre-Approval: Obtain pre-approval for a first mortgage.
3. Application Submission: Submit a complete application packet during escrow.
4. Property Inspection: Ensure the property meets all program requirements.
5. Loan Approval: Upon approval, proceed to close escrow.

For more details, check out the City of Santa Ana’s My First Home Program.

3. CalHFA MyHome Assistance Program

Funding Source:

California Housing Finance Agency (CalHFA).

Eligibility Criteria:

• First-Time Homebuyer: Must not have owned a home in the last three years.
• Income Limits: Must meet CalHFA income limits for the county.
• Credit Score: Minimum credit score requirements apply.
• Homebuyer Education: Completion of a homebuyer education course is required.

Benefits:

• Financial Assistance: Provides a deferred-payment junior loan up to 3.5% of the purchase price or appraised value to assist with down payment and/or closing costs.
• Loan Terms: Deferred payments until the home is sold, refinanced, or paid off.

Potential Drawbacks:

• Repayment Obligation: The loan must be repaid upon sale, transfer, or refinancing.
• Income Limits: Strict income limits may restrict eligibility.

Application Process:

1. Homebuyer Education: Complete a CalHFA-approved homebuyer education course.
2. Loan Pre-Approval: Work with a CalHFA-approved lender to get pre-approved.
3. Application Submission: Submit the necessary documentation through the lender.
4. Loan Approval: Upon approval, proceed with the home purchase process.

For more information, visit the CalHFA MyHome Assistance Program.