One of the most rewarding aspects of my career is helping renters purchase their first home; and locally, there are quite a few Garden Grove and Cypress First Time Homebuyer Programs to help.

The majority of millennial renters would love to buy a home. However, many of them also believe they can’t afford to. The truth is, though, there are many products designed to help first time buyers purchase a home, regardless if their credit score is low and they have little to no down payment saved. To shed some light, below you will find some of the best programs to help you buy your first home. 1) FHA A FHA loan is a loan insured by the Federal Housing Administration, an agency within the U.S. Department of Housing and Urban Development (HUD). Accordingly, since the lender is protected from loss by the FHA’s backing if a borrower defaults, these loans typically offer competitive rates and require lower credit scores and down payments. Generally speaking, one with a FICO of 580 and only 3.5% of the sales price saved is eligible. In addition, the program may also qualify one with a score below 580 if they have a larger down payment. 2) CalHFA Here in California, we are also provided the opportunities of CalHFA’s first and second (aka Junior) loan options for low to moderate income families, as well as their low to zero interest rate down payment assistance loans. One of their most beneficial programs is their “MyHome Assistance Program.” This offers a deferred-payment junior loan for 3.5% of the purchase price or appraised value (whichever is less). To qualify for their loans, you must obtain financing through a CalHFA approved lender and meet their credit (usually 640+) and income limits, as well as occupy the property as your primary residence and complete homebuyer education counseling. 3) VA Loan If you’re an active-duty military member, veteran, or the surviving spouse of one, you may be eligible for a VA loan. The U.S. Department of Veterans Affairs (VA) guarantees part of these loans, making it possible for lenders to provide such benefits as competitive rates, no down payment requirements, no mandated private mortgage insurance, and no minimum credit score. Additionally, if it becomes difficult to make your VA loan, you can work with the VA to negotiate with your lender on your behalf. Although many of these programs are targeted for first time home buyers, the good news is you don’t necessarily have to be a first time homebuyer to be eligible. Speaking with a lender can help decipher which assistance program is best for you and your family. They can also shed additional light on other first time home buyer programs as: • Fannie Mae or Freddie Mac – Backed by the government-sponsored entities, Fannie Mae or Freddie Mac, these programs offer competitive interest rates and accept down payments as low as 3% of the purchase price. • USDA Loan – An assistance program offered by the U.S. Department of Agriculture (USDA) for properties in certain rural areas and requiring no down payment. • Good Neighbor Next Door Program – Sponsored by HUD, this program offers aid for law enforcement officers, firefighters, emergency medical technicians, and teachers. • FHA Section 203(k) – If you’ve decided to take the fixer-upper route, the FHA Section 203(k) may be your best bet as it takes into consideration the value of the home after it has been fixed and improved and then allows you to borrow the full amount to cover the purchase and rehab. Additionally, the down payment can be as low as 3%. • Local Grants & Programs – Counties and cities offer a variety of local grants and programs to help first-time homebuyers. It’s best to check with the county and city to see what programs are currently available as these constantly change due to budgets and expiration dates. For instance, currently, the Orange County Housing Authority (OCHA) has established a Housing Choice Voucher (HCV) Homeownership option for qualified HCV participants to use their housing assistance subsidies for mortgage payments instead of rent. To learn more about this program, you would have to visit Orange County Homeownership Program. http://www.ochousing.org/special/ownership

The majority of millennial renters in Garden Grove and Cypress would love to buy a home. However, many of them also believe they can’t afford to. The truth is, though, there are many products designed to help Garden Grove and Cypress first time homebuyers purchase a property, regardless if their credit score is low and they have little to no down payment saved. To shed some light, below you will find some of the best programs to help you buy your first home.

Garden Grove and Cypress First Time Homebuyer Program

1) FHA

A FHA loan is a loan insured by the Federal Housing Administration, an agency within the U.S. Department of Housing and Urban Development (HUD). Accordingly, since the lender is protected from loss by the FHA’s backing if a borrower defaults, these loans typically offer competitive rates and require lower credit scores and down payments. Generally speaking, one with a FICO of 580 and only 3.5% of the sales price saved is eligible. In addition, the program may also qualify one with a score below 580 if they have a larger down payment.

2) CalHFA

Here in Garden Grove and Cypress, California, we are also provided the opportunities of CalHFA’s first and second (aka Junior) loan options for low to moderate income families, as well as their low to zero interest rate down payment assistance loans. One of their most beneficial programs is their “MyHome Assistance Program.” This offers a deferred-payment junior loan for 3.5% of the purchase price or appraised value (whichever is less). To qualify for their loans, you must obtain financing through a CalHFA approved lender and meet their credit (usually 640+) and income limits, as well as occupy the property as your primary residence and complete homebuyer education counseling.

3) VA Loan

If you’re an active-duty military member, veteran, or the surviving spouse of one, you may be eligible for a VA loan. The U.S. Department of Veterans Affairs (VA) guarantees part of these loans, making  it possible for lenders to provide such benefits as competitive rates, no down payment requirements, no mandated private mortgage insurance, and no minimum credit score. Additionally, if it becomes difficult to make your VA loan, you can work with the VA to negotiate with your lender on your behalf.

Although many of these programs are targeted for first time home buyers, the good news is you don’t necessarily have to be a first time homebuyer to be eligible. Speaking with a lender can help decipher which assistance program is best for you and your family. They can also shed additional light on other first time home buyer programs as:

  • Fannie Mae or Freddie Mac – Backed by the government-sponsored entities, Fannie Mae or Freddie Mac, these programs offer competitive interest rates and accept down payments as low as 3% of the purchase price.
  • USDA Loan – An assistance program offered by the U.S. Department of Agriculture (USDA) for properties in certain rural areas and requiring no down payment.
  • Good Neighbor Next Door Program – Sponsored by HUD, this program offers aid for law enforcement officers, firefighters, emergency medical technicians, and teachers.
  • FHA Section 203(k) – If you’ve decided to take the fixer-upper route, the FHA Section 203(k) may be your best bet as it takes into consideration the value of the home after it has been fixed and improved and then allows you to borrow the full amount to cover the purchase and rehab. Additionally, the down payment can be as low as 3%.
  • Local Grants & Programs – Counties and cities offer a variety of local grants and programs to help first-time homebuyers. It’s best to check with the county and city to see what programs are currently available as these constantly change due to budgets and expiration dates. For instance, currently, the Orange County Housing Authority (OCHA) has established a Housing Choice Voucher (HCV) Homeownership option for qualified HCV participants to use their housing assistance subsidies for mortgage payments instead of rent. To learn more about this program, you would have to visit Orange County Homeownership Program.

About the author

Frank Abbadessa

Realtor, SFR, Platinum Club, Inc.

With great experience in Garden Grove, Cypress, Lakewood, Buena Park and Seal Beach real estate as well as intimate local area knowledge, I work extensively to help buyers and sellers meet their real estate goals. If you are looking to buy or sell a home or would just like to know some more information, feel free to call or Email me. As a listing agent in North Orange County, my extensive marketing plan gives a homeowner the opportunity to get the maximum value for his/her property. For buyers, I help negotiate the best possible deal and search until I find the perfect property. Nothing satisfies me more than seeing the smiles that come with a successful sale or the purchase of a lifetime.

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