Financing in 91911>Question Details

HAnderson, Home Buyer in Santee, CA

California first time homebuyer grant?

Asked by HAnderson, Santee, CA Tue Apr 26, 2011

I am a first time home buyer and while looking for a lender I was told that there is a grant by the state of California that gives you 3% towards the down payment of your home. Ive spoke to 2 lenders so far, one told me there is no catch to this loan the other told me that the catch is my interest rate would go up. So instead of having 4.75% it would go up to 5.25%. Is this true or is that lender trying to get more comission? This is the grant I'm refering to:
"Down payment/closing cost assistance grant - First-time homebuyers earning 100 percent or less of the San Diego Area Median Income (AMI) can apply for a grant equal to four percent of the purchase price (not to exceed $7,500), to be used toward the down payment and closing costs. The grant is recoverable if the buyer sells or rents the home within six years. (San Diego Housing Commission)"

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When you refer to a Grant that encapsulates many possibilities. The most common type loan program utilizing a Grant is the CalHFA, CA Access or the CA Platinum. Though the guidelines of these program are relatively similar, there are a subtle differences with each program but are clear advantages to using one rather than the other, it just depends on your particular circumstances. Generally speaking, all of these programs offer up to a 3% Grant that can be used towards your down payment or closing costs. Qualifying is relatively painless but as you mentioned, there are income limits. Rate are very competitive as we loan officers are restricted to what we can charge a borrower and what other compensation we receive.

Regarding the SDHC Program, I will give you a link showing there are funds available:
http://sdhc.org/uploadedFiles/Real_Estate/First_Time_Homebuy…

but believe me the waiting list of borrowers is very long, and qualifying is very difficult. I have a client who has been waiting for over 18 months. If you'd like further information regarding any the above loan programs, don't hesitate to contact me.

Best of Luck!
Web Reference: http://www.AFN-Loans.com
1 vote Thank Flag Link Wed Apr 27, 2011
These are the Neighborhood Stabilization programs. Your Realtor must be certified to participate in this program. For years, I volunteered as a Realtor for the Homebuyer Classes for SDHC, and now my office is certified for the recent new program. Like all programs, you must qualify first. Google the website. neighborhood stabilization program... Info will come up.
Contact me for further assistance.
Thanks,
Maria Esparza
0 votes Thank Flag Link Wed Apr 27, 2011
There are grants for San Diego County, San Diego city, and other cities within the county. Money is not always available, however, and many lenders and agents don't work with them, so they don't stay up to date on the information.

You really have to look up each locale where you want to buy, and call them to see if there is money available. They get grant money, and when it's gone, it's gone until the next time they get funded. The San Diego Housing Commission facilitates HUD programs for the City of San Diego, so if you're buying in East County or elsewhere, you may need to look for other grant money.

You can call or email me, and I'll be happy to send you some website links I have, and even some lenders that have worked with these programs.

Regards,
Cory
0 votes Thank Flag Link Wed Apr 27, 2011
There are numerous programs in San Diego County, 3 programs covers Chula Vista: 1) Neighborhood Stabilization Program - for purchasing foreclosed property in certain areas - Can qualify for up to $70,000 in down payment assistance and possibly money for Rehab 2) Cal Home Loans -up to $48,000 - this program is good anywhere in California 3) CALHFA - up to 3% for either down payment or closing costs and interest rate general below 4%
All of these down payment and closing costs loans requires no monthly payment and are deferred for 30yrs, some loans acrues interest and other share in future profit.

These programs have no impact on your interest rate on the 1st loan, that is just a ploy to direct you away from the benefits of these programs either because the lender you are working with is not "AUTHORIZED' or knowledgeable about the programs. They are great programs.
Call me Andy 619-9715574
0 votes Thank Flag Link Wed Apr 27, 2011
Hi HAnderson,
I recommend that you go to the http://www.irs.gov website for information on the first-time homebuyer credit and to the http://www.ca.gov. As to your loan rate, it could change if variable, but if fixed rate, it should stay the same for the life of the loan.
0 votes Thank Flag Link Wed Apr 27, 2011
H -

Check out this recent blog post for down payment assistance programs. There are Fannie Mae loans available with only 3% through HomePath program. There are others through CalHFA. See link.

http://www.homepath.com/

CJ
0 votes Thank Flag Link Wed Apr 27, 2011
I am familiar with the program but I thought it ended or they allocated all funds. It was administered by the SD Housing Commission: Website here: http://sdhc.org/Real-Estate/First-Time-Homebuyers/

I looked and it does not say if the program is still in effect or not, the last information showed funds available as of January 2010, which is not very helpful. You may want to contact them directly to get more information. When you are ready for your mortgage, give me a call.
Web Reference: http://WeFixRates.Com
0 votes Thank Flag Link Tue Apr 26, 2011
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