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.


dc549ad7 788e 4af9 93fe 30b9dba65416 90be9dc6 a1d0 4872 8486 aa3138c51fd8 689c90f5 a01b 4f76 af07 4f9dfcbc88a7 f83b128b cbdb 4ac1 814c 5a58adc2f346 806100f6 7e61 4634 b1c0 048d3d306eb6 57a64dec 1f91 429d a166 270d32e627ea bcc988a3 ea5c 4220 a1c5 bddd5650fb48 2a9140d2 988e 4627 85e4 e4128319d01b cd15cd9d 8426 44a7 b1e4 2a36898cf53a fa56128a e019 4e0f 8fdf bb89b2d3204f 8884b827 c6ac 4118 b412 74d8ead03572 21bbbd0d baaf 42d6 a1ca a9bdcd449794 1c4fdb8a 4d5a 41f3 b92a e1a45175e167 653e49d9 7f96 4fe4 911e 88c86751bf0c ca49f8e2 520c 43a7 8a69 bc9f90fdcda0 134a70de 1dcb 4220 aa21 34a63985a84e dfc8b7e0 6656 4f38 8f49 ae6d3d81c205 d254e142 c61d 4cee a61e 487924916c85 96d3604a f46e 4646 b49e d1272d4a6911 d7c1e38d fbc4 4570 a945 b13dd5dfcc1c ee689c83 72bc 469a b724 1ae2748f4e3f 79a46d02 73bb 4e1d b597 ddc716b78664 d00f2dcc 1c33 4190 a5ad da2295e63af2