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No Down & Down Payment Assistance Home Loans - California

Updated: Apr 9

The California housing market is a force to be reckoned with. With soaring property values, saving for a down payment can feel like an insurmountable hurdle. But what if we told you that buying a home in California with no money down is a very real possibility?


This blog post will explore various avenues for aspiring homeowners in the Golden State to achieve their dream without a traditional down payment. From government-backed programs to local initiatives, we'll unveil the keys to unlock the door to your new home.


Government Programs:

  • VA Loans: Designed for veterans and active military personnel, VA loans offer the ultimate no-down-payment option. Backed by the Department of Veterans Affairs, these loans come with attractive interest rates and don't require private mortgage insurance (PMI).

  • USDA Loans: The United States Department of Agriculture (USDA) offers loans for rural and suburban areas. These loans eliminate the down payment requirement for qualifying properties, making homeownership accessible in designated locations.

Down Payment Assistance Programs:

California boasts a plethora of down payment assistance programs targeted specifically at first-time homebuyers. These programs offer grants or forgivable loans that can significantly reduce the upfront cost of buying a home. Here are some key examples:


  • California Housing Finance Agency (CHFA): CHFA offers a variety of down payment and closing cost assistance programs for eligible homebuyers, including the popular CalHFA Down Payment Assistance Program.

  • CalHome Program: This program provides down payment assistance for purchase and rehabilitation of single-family homes in California.

  • California Dream for All Program:  This program offers down payment and closing cost assistance to eligible low- and moderate-income homebuyers.

  • FHA EPM Grant Program: This unique program allows eligible homebuyers to use a 3.5% down payment grant that is immediately forgiven at the close of escrow. This essentially eliminates the down payment requirement for FHA loans.


Beyond Zero Down:

While these programs eliminate the traditional down payment, remember that closing costs will still be a factor. There are ways to manage these costs as well. Some lenders may offer programs that cover closing costs in exchange for a slightly higher interest rate. Additionally, a savvy buyer may negotiate with the seller to contribute towards closing costs.


Remember, Eligibility is Key:

It's important to understand that qualifying for these programs depends on your specific financial situation. Here at Mortgage Masters of California, we're dedicated to helping you navigate the loan process and find the program that best suits your needs. Our experienced team can quickly and easily assess your eligibility for various down payment assistance options.


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Ready to unlock the door to your dream home? Click here to speak with me, Frank Gray, and learn more about what programs you might qualify for!

Together, let's turn your California homeownership dream into a reality by CLICKING HERE.


Mortgage Originator Frank Garay - Mortgage Masters of California


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