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California Home buyer’s Down Payment Assistance Program (CHDAP) – California Housing Finance Agency (CalHFA) Programs

California Home buyer’s Down Payment Assistance Program (CHDAP) helps make homeownership a possibility for low- and moderate-income first time home buyers by providing a deferred payment, simple interest rate junior loan of an amount up to 3% of the home sale price or appraisal value, whichever is less. The loan may be used for down payment or closing costs. This junior loan may be combined with a CalHFA or non-CalHFA fixed rate, first mortgage loan.

To be qualified, borrower must be a First Time Home Buyer purchasing a primary residence intended for owner-occupancy and contribute a minimum of 1% of the sale price from the borrower’s own funds. First Time Home Buyer is defined as not having owned a home in the past 3 years.

Cal30 Conventional – California Housing Finance Agency (CalHFA) Programs

Cal30 Conventional first mortgage loan program is designed to enhance affordability and homeownership opportunities by offering a fixed interest rate. This program is designed for first time home buyers who meet specific income requirements set by CalHFA and who are purchasing a new or existing home in California.

The Cal30 Conventional loan offers up to 95% financing. This first mortgage loan may also be combined with CalHFA junior loan programs for down payment and closing cost assistance to make owning a first home more affordable.

California Public Employee Retirement System (CalPERS)

CalPERS Member Home Loan Program is designed to offer members security, protection, and choice when purchasing or refinancing a home. The program is available nationwide through approximately 30 approved lenders.

All active, inactive, and retired members of CalPERS, the Legislators’ Retirement System, the Judges’ Retirement System, and the Judges’ Retirement System II are all eligible to participate.

The program offers both fixed and adjustable rate loans, 100% loan financing, special loan programs, and rate lock options.

California State Teachers’ Retirement System (CalSTRS) Home Loan Program

CalSTRS home loan program was established in 1984 as a result of legislation that provided CalSTRS with a mortgage-backed investment opportunity, as well as additional source of home financing for its members and retirees.

In 1986, CalSTRS began purchasing 30-year and 15-year fixed interest rate conventional home loans to members for single family dwellings, single family cooperative apartments, and single family condominiums.

To be eligible for the CalSTRS home loan program, borrower must be an employee of a California public school district, a member of the California State Teachers’ Retirement System, or an employee of a CA community college.

Federal Housing Administration (FHA) Loan

FHA is a federal agency which insures first mortgages, enabling lenders to loan a very high percentage of the sale price. It is easier to be qualified. Because FHA insures borrower’s mortgage, lenders may be more willing to give the borrower loan terms that make it easier to qualify.

As the borrower, you don’t have to have a perfect credit score to get an FHA mortgage. In fact, even if you have had credit problems, such as a bankruptcy, it is easier for you to qualify for an FHA loan than a conventional loan.

FHA offers down payment assistance program by allowing a low 3.5% down payment and that money can come from a family member, employer or charitable organization as a gift. Since FHA loans allow low down payment, less than 20%, an Up-Front Mortgage Insurance Premiums (UFMIP) is required and must be entirely financed into the mortgage or paid entirely in cash.

An FHA insured mortgage may be used to purchase or refinance a new or existing 1-4 unit family home, a condominium unit or a manufactured housing unit (provided the manufactured housing unit is on a permanent foundation).

FHA does not provide direct financing nor does it set the interest rates on the mortgages it insures. For the best interest rate and terms on a mortgage, a borrower should compare mortgages from several different lenders.

Federal Housing Administration 203K (FHA-203K) Loan

The purchase of a house that needs repair is often a catch-22 situation, because the bank won’t lend the money to buy the house until the repairs are complete, and the repairs can’t be done until the house has been purchased.

FHA 203K program can help home buyer with this dilemma and allow the home buyer to purchase or refinance a property plus and include the loan for the cost of making the repairs and improvements. The FHA insured 203K loan is provided through approved mortgage lenders nationwide.

The down payment assistance program requirement for an owner-occupant, a nonprofit organization or government agency is approximately 3.5% of the acquisition and repair costs of the property.

United States Department of Agriculture (USDA) Home Loan Programs

Rural Housing Direct Loans are loans that are directly funded by USDA. These loans are available for low- and very low-income households to obtain homeownership. The down payment assistance program allows applicants to obtain up to 100% financing, no down payment required, to purchase an existing dwelling, purchase a site and construct a dwelling, or purchase newly constructed dwellings located in rural areas. Mortgage payments are based on the household’s adjusted income. These loans are commonly referred to as Section 502 Direct Loans.

Section 502 loans are primarily used to help low-income individuals or households purchase homes in rural areas. Funds can be used to build, repair, renovate or relocate a home, or to purchase and prepare sites, including providing water and sewage facilities. Eligible families must be without adequate housing but be able to afford the mortgage payments, including taxes and insurance, which are typically within 22 to 26 percent of an applicant’s income.

USDA also authorizes lenders to participate in Single Family Housing Guaranteed Loan Program. Both Direct and Guaranteed Loan applications are required Rural Development Officials’ approval.

Veterans Administration (VA) Loan

VA loan is partially guaranteed by the Veterans Administration and made by a private lender. Among the benefit programs is the home loan guaranty program designated to encourage mortgage lenders to offer long-term low down payment financing to eligible veterans by guaranteeing the lender against loss on these higher-risk loan.

The down payment assistance program requires no down payment with full entitlement. Loan amount may be up to $417,000 with 100% financing nationwide, with higher limits in some “high cost” areas. The limits are subject to change each year.

No monthly mortgage insurance premium is required. It is also more flexible in employment, income and savings requirements. Buyer’s closing costs are limited. Both fixed and adjustable rate programs are available with 30-year loan term.

Purchase Assistance Loan (PAL) Program – Housing Trust of Santa Clara County

PAL program may be used for the purchase of foreclosed or abandoned properties in designated census tracts in the City of San Jose. The maximum loan amount is $50,000. The Housing Trust requires a minimum down payment of 3% for this down payment assistance program. The loan term is 30 years. The interest rate on the loan is 3% simple interest per annum.

Payment of principal and interest is deferred until expiration of the term, or sale, transfer, or refinancing of the property. To be qualified, borrower doesn’t have to be a First Time Home Buyer; however, the borrower must live in his/her existing home as primary residence. The PAL program is funded by the Neighborhood Stabilization Program 2 (NSP2), part of the American Recovery and Reinvestment Act (ARRA).

Closing Cost Assistance (CCA) Program – Housing Trust of Santa Clara County

CCA program may be used for closing costs and/or other assistance allowed by borrower’s primary lender. The Housing Trust requires a minimum down payment of 3% for this down payment assistance program. The maximum loan amount is $6,500. The loan term is 30 years. The interest rate on the loan is 3% simple interest per annum.

Payment of principal and interest is deferred until expiration of the term, or sale, transfer, or refinancing of the property. To be qualified, borrower must be a First Time Home buyer. First Time Home Buyer is defined as having not owned a home in Santa Clara County in the past 3 years. The CCA program is funded by donations of local corporations, foundations, governments and citizens.

Mortgage Assistance Program (MAP) – Housing Trust of Santa Clara County

The MAP is an amortizing second loan that is now available to assist in the purchase of buyer’s first home. The Housing Trust requires a minimum down payment of 3% for this down payment assistance program. At least 50% of the required down payment must come from the borrower’s own funds.

The total loan to value of the first and second loans combined cannot exceed 97%. The maximum loan amount is $50,000. The loan is amortized over 30 years. The interest rate on MAP loan is 1.5% above the rate on the first loan. And there is a loan origination fee of 2%.

Equity Share Co-Investment (ESCO) Program – Housing Trust of Santa Clara County

The Housing Trust, with American Home Equity Partners, has developed a program to assist qualified home buyers get on the property ladder through a down payment assistance program. Home buyers will make a down payment of at least 5% of the purchase price of the home. The Housing Trust will match that down payment dollar for dollar up to a maximum of $75,000.

The ESCO loan will be repaid when the homeowner sells or refinances their home, or in 15 years. The ESCO loan will be repaid out of the appreciation of the home in equal proportions to the amount of the original down payments.

First Time Home Buyer Program – Mortgage Credit Certificate (MCC) Program – Santa Clara County

MCC program offers the First Time Home Buyer a federal income tax credit. This tax credit reduces the federal taxes the holder of the certificate pays. It can also help the First Time Home Buyer qualify for a loan by allowing a lender to reduce the housing expense ratio by the tax savings.

The qualified home buyer who is awarded an MCC may take an annual credit against their federal income taxes paid on the home buyer’s mortgage. The credit is subtracted dollar-for-dollar from his/her federal income taxes. The qualified buyer is awarded a tax credit of up to 15% with the remaining 85% taken as a deduction from the income in the usual manner.

Neighborhood Stabilization Program (NSP) – City of San Jose Home buyer Programs

NSP is funded from the Housing and Economic Recovery Act (HERA) of 2008, commonly referred to as the “Stimulus Funds” and was enacted for the purpose of revitalizing the economy. The primary mission of the NSP is to mitigate blight, enhance neighborhoods with quality construction, incorporate Green Building features and assist low- and moderate-income first time home buyers.

Only certain single family detached homes located in zip codes of 95111, 95116, 95122 and 95127 are available through the program. The City of San Jose has received $5.6 million dollars to fund this program, and created an exclusive partnership with Community Rehabilitation Partners (CRP) to implement the acquisition, rehabilitation, and resale aspects of the NSP.

Building Equity and Growth in Neighborhoods Loan (BEGIN) – City of San Jose Home buyer Programs

BEGIN is a down payment assistance program to help making homeownership a possibility for low- and moderate-income first time home buyers by providing a deferred payment loan. The funds are available only in specific new construction developments approved by CalHCD. The loan may be used for down payment or closing costs.

Teacher & Credentialed Staff Home buyer Program (THP) – City of San Jose Home buyer Programs

The purpose of THP is to attract and retain the public school teachers that are needed to provide quality education for San Jose youth. Public school teachers and credential staff, employed full time at a K-12 school located within the City of San Jose or at a public school where 50% or more of the students are San Jose residents are eligible for THP.

SJSU Faculty & Staff Home buyer Program (FSHP) – City of San Jose Home buyer Programs

FSHP is a unique partnership between the City of San Jose, San Jose State University (SJSU), and Spartan Shops. The purpose of FSHP is to attract and retain SJSU faculty and staff members to provide a quality education and experience for SJSU students and the surrounding community. The FSHP offers a deferred payment loan of up to $60,000 for permanent faculty and staff SJSU.

First Time Home Buyer (FTHB) Program – City of Santa Clara

FTHB is a down payment assistance program that helps make homeownership a possibility for low income first time home buyers by providing a deferred payment junior loan of an amount up to $75,000. There is no interest on payment for the first 5-year. The loan may be used for down payment or closing costs. The property must be located within the city limits of the City of Santa Clara.

Below Market Price Purchase (BMP/BMR) Program – City of Santa Clara

BMR program is a market based approach. Resale restriction period is only for 5 years. Homeowners can participate in the same housing economy as market-rate owners after 5 years of ownership. If the homeowner decides to sell the BMR unit within the first 5 years, the BMR unit must be sold to another qualified, income-eligible home buyer at the restricted price. The homeowner’s share of any appreciation beyond the Initial Market Value (IMV) will increase by 5% per year for twenty years.

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