Understanding California's Downpayment Assistant Programs

Home / Blog / Understanding California's Downpayment Assistant Programs

Understanding California's Downpayment Assistant Programs

We've all grown up with this goal to find a steady job and get to the point where we feel like we're really stable in life so we can finally take the ultimate step: buying a home for ourselves and/or our family.

But buying a house is a huge investment.

It's not every day that you'll consider dropping over $400K on a single purchase. But when it comes to buying a home in California, that's exactly what you may have to do.

The first few steps to buying your new home are shopping around, choosing your ideal neighborhoods, sticking to a budget, and saving up for your down payment. Most mortgage lenders require a down payment of at least three to three-and-a-half percent, however, a more common down payment goal is 20 percent (this way you avoid additional fees and the need to buy mortgage insurance). A 3.5 percent down payment for a $500,000 home (the average home price in California) is $17,500, and a typical 20 percent down payment for a $500,000 home is $100,000. And most people simply don't have that kind of money saved up for a down payment.

This is where California's down payment assistance programs comes in, to help average people and families (like you and yours) have the ability to buy their dream (or starter) home without unreasonable savings goals.

What is a down payment assistance program?

Most times the people in need of down payment assistance are first-time buyers who don't have enough savings for a full 3.5 percent down payment or money to cover closing costs. When second- or third-time buyers are searching for a new house, they can often get the extra funding from the sale of their previous home.

These programs are designed to help first-time homebuyers secure a loan for up to 3.5 percent of the entire sale of their home so they can meet down payment requirements for the mortgage and cover closing costs. Many of these loans are deferred payment, so you won't even have to worry about beginning to pay off your down payment at the same time you're starting to pay your mortgage. However, some are grant programs, which don't require repayment at all.

Why do I need down payment assistance?

You might not. If you have regularly been able to set aside a portion of your paycheck each month to eventually put towards a home, that is excellent. Unfortunately, not everyone who wants to buy a home has had the luxury to do so, and that is why assistance programs like this exist.

California's cost of living is one of the highest in the whole country, and not every wage has been fixed to match. But that doesn't mean those people are any less deserving of owning their dream family home.

This is why the ability to get assistance on the down payment of a home exists. It's designed for people and families who have always dreamed of owning their own home but do not have the luxury to set aside money to save up for it themselves. It gives every person and family in California the potential to buy their own house.

How do these down payment assistance programs work?

California offers a few different down payment assistance programs. Two of the most common are the MyHome Assistance Program and the Extra Credit Teacher Home Purchase Program (ECTP).

The ECTP is catered towards all staff and employees of public K-12 schools in California to ensure that our educators are given access to adequate living arrangements.

The MyHome Assistance Program is for all other Californians that are eligible for help with their home's down payment. It's important to note that the home must be your primary residence. (Down payment assistance programs will not assist with investment properties.)

How We Can Help

To see if you meet the requirements, fill out our form to find out what down payment assistance or other programs you are eligible. Upon submitting the eligibility request, we will alert you to which programs you qualify, and are here to help you make the best decision for you and your family. 

Don't let your lack of savings stop you from buying the home of your dreams. With California's down payment assistance programs and Ubermortgage, you too can become a homeowner.

fdc36d92 0a72 4443 9979 dad419c28e5b 5c779689 d5cf 49a7 a6ca 1fc4f22c4fcc d76fbf4d 06a4 4da1 b8ae a41dbdf8403f 2124521e a3dc 4a41 95a3 840c4a5e2cc5 c876f310 3e2a 45f4 a369 c6a2e3e95da4 cdee75e2 6058 4fa9 89f2 cbfdc4a0ce6e b2d5f926 ed90 4d43 8be8 5ca2fc15f1d7 effbc433 eb3b 4225 8b94 3015f76ac4cf 53016ce8 f65f 40c5 87d1 3c9243b7b4c3 862e14d4 df41 4822 bef3 a465936bf5e7 75085023 13b0 4a57 9103 e764af34c309 471090bf e974 46dd 9b4c 8e62be293a68 1e2e643f c218 4deb b3a7 e654d16982ea 551fd3fa b590 40f6 9765 9865fe13e470 b3b6952f 5b79 458b 8025 8f0583dd7018 2048ad38 4f14 4ee3 ad61 f8c2ad542265 f322c247 7f4e 4a01 80e1 38d51ed8be35 741c9ad7 66a1 4745 9cc7 ef06caec2a42 039ce867 e00e 4cc5 ab85 97582a6ff846 a61034a1 4ee9 416e b7df 688ddacd1d10 8830ca1f 101d 4ed5 9c81 2d32a64e937c d53835cf bffd 4ddf a24e 3dccb8da6fe2 1f0e771a eb25 4479 9cc7 3f9392a9b4b3