I am a Realtor that DOES NOT think everyone should buy a home. Sometimes it makes sense for a family, and sometimes it simply doesn’t.
I am closing a deal with one young family with a two year old daughter and another one on the way. They purchased a two bedroom townhome with only 1% down and received some assistance from the seller towards their closing costs.
For them, buying absolutely makes sense. Their monthly payment is very close to the amount they were paying for rent, and they got in with a minimum amount of cash.
The program they qualified for is CALFHA – If you are a first time buyer, you owe it to yourself to check it out!! Their website link is http://www.calhfa.ca.gov/.
Here is some of their basic information:
The California Housing Finance Agency (CalHFA) is making homeownership affordable for first-time homebuyers in California. If you haven’t owned a home in which you have occupied for the past three years, you could qualify for this program.
When the CalHFA program is combined with a Federal Housing Administration (FHA) loan you can receive a low-cost, fixed-rate mortgage to help make homeownership affordable and sustainable.
With the CalHFA FHA loan, plus down payment assistance from the California Homebuyer’s Down Payment Assistance Program (CHDAP), you only have to bring one percent of the sales price in buyer contribution.
With the CalHFA FHA loan, you benefit from:
- Only 1% of the sales price buyer contribution required
- Stability of a below-market 30-year fixed-rate loan
- 3% junior lien can be used for down payment and/or closing costs
- Discounted interest rate even for lower credit scores
- 99% loan to value (with CHDAP junior lien)
I have a wonderful loan officer who is well versed in this program and would be happy to refer you!!