First time home buyers soon find they’ll need to save up some cash for a down payment on a home but may also be somewhat surprised at the amount of closing costs involved. Closing costs aren’t overwhelming by any means but buyers soon discover there is more to save than just for the down payment. Even for zero down payment loans such as VA and USDA mortgages, closing costs must still be considered. And even those who are in the process of saving for a down payment and closing costs can find the “perfect” home a bit before enough funds have been saved. Yet that’s where the MyHome Assistance Program can help.
This program here in California provides up to 5.00% of the sales price of a home to assist with a down payment and closing costs. For a $200,000 home, that’s up to $10,000 and can go a long way to help secure financing. The MyHome Assistance Program comes in the form of a second lien on the property and is used in conjunction with a CalHFA mortgage. There are some guidelines that lenders who participate in this program must follow, but for those who do qualify, it’s an excellent source for not just a competitive loan program but for additional funds needed to close on a transaction.
The MyHome Assistance Program is limited to first time home buyers as well as to those who have not owned a home within the previous three years. That means even if you owned a home say five years ago but have not owned since then, you can still qualify because you didn’t own it within the previous three years.
Buyers must also complete a homebuyer education course which can be completed online or at a nearby workshop that is approved by the Department of Housing and Urban Development to hold the first time homebuyer class. And finally, there are income limitations as well based upon the location of the property being financed and there are also sales price limits as well. Your loan officer can guide you through these steps as well as help select the proper loan program that best suits your requirements.
This program can be found at approved lenders who are authorized to offer and underwrite these loan programs. If you’re in the market for a home but have still yet to save up the funds needed to close, you may already be closer to buying than you think with the MyHome Assistance Program.