California Down Payment Assistance and Buyer Grants Explained

WELCOME TO OUR CALIFORNIA DOWN PAYMENT ASSISTANCE AND BUYER GRANTS PAGE

CALIFORNIA DOWN PAYMENT ASSISTANCE AND BUYER GRANTS PAGE are available. Use the tool below to find out what you qualify for.

We have links to the necessary tools that can help determine the level of California down payment assistance and buyer grants you qualify for. The results may surprise you, so it’s worth checking out. Support is even available for income levels of $100k+ in some areas.

Down Payment Assistance: Defined

Down payment assistance (DPA) is any program or funding method that reduces the financial burden of the down payment or closing costs and that makes purchasing a home more accessible to a larger demographic. “DPA” is available in many forms, including grants, loans, vouchers, and tax breaks. Various entities, including government departments, nonprofits, and federally backed lenders, are typically DPA sponsors. DPA can offer up to 100% financing on a home purchase, but more commonly, between 3%-20% of the purchase price is provided to help cover upfront out-of-pocket expenses. For anyone searching for California down payment assistance, it is important to understand these program details.

Helpful Information for Checking Availability of Down Payment Assistance or Grants

Many programs request a comparison of your income vs. the “area median income” or “AMI” of the neighborhood where you want to purchase. If you need to know your AMI, follow the link to use the Fannie Mae lookup tool and determine the median income for your neighborhood: https://ami-lookup-tool.fanniemae.com/amilookuptool/. Moreover, gathering information for California down payment assistance programs will often require knowing your AMI.

Example Program Benefits

Borrowers with income less than or equal to HomeReady’s 80% Area Median Income (AMI) income limits are eligible for discounted Mortgage Insurance (MI) rates and possibly the following benefits:
Deferred payment, zero interest rate, long-term subordinate mortgage.
Guest houses, granny units, and in-law quarters are eligible for financing under certain conditions.
No borrower minimum contribution is required.
No purchase price limits.
Fannie Mae Homestyle Energy is allowed.
Borrowers who own or have owned rental properties may be first-time homebuyers if they can document that they have not occupied any of the rental properties as their principal residence within the past three years. See the full list of programs for more details on California down payment assistance opportunities.