Achieving the dream of homeownership can be daunting for many home buyers in Sacramento, California. With rising housing costs and economic changes, navigating the buying process can feel overwhelming. However, several affordable housing options and assistance programs are available to help buyers make their dreams a reality.
This guide aims to provide an objective and informative overview of various home buyer programs, loans, and grants. From federal to state and local programs, charitable or nonprofit organizations to employer-sponsored initiatives, this guide will explore the different types of resources aspiring homeowners can utilize to achieve their goals. Read on!
Types of first-time home buyer programs
State and local home buyer programs
The California Housing Finance Agency (CalHFA) offers several homebuyer assistance programs. To be eligible, you must complete a counseling course and meet specific income and credit score limits.
First-time mortgage programs through the CalHFA include government loans, like the CalHFA FHFA Program, CalPLUS FHA Loan Program, a VA loan program, and a USDA program. CalHFA also offers conventional loan programs. In addition, the MyHome Assistance Program provides a deferred payment junior loan to help with down payments and closing costs.
CalVet Home Loans is a state agency specifically designed to help veterans purchase a home in California. The agency provides loan guidance, financing solutions, insurance, and more.
Federal first-time home buyer programs
The Federal Housing Administration (FHA) offers loans with low down payments and flexible credit requirements, making it easier for those with less-than-perfect credit or higher debt-to-income ratios to qualify for a mortgage.
The Department of Veterans Affairs (VA) offers VA loans to active-duty military personnel, veterans, and eligible spouses with no down payment requirement and competitive interest rates.
The United States Department of Agriculture (USDA) provides rural development loans that can help finance the purchase of a home in eligible rural areas, including up to 100% financing and low-interest rates.
Charitable or nonprofit home buyer programs
These organizations include NeighborWorks Sacramento, which offers pre-purchase counseling and workshops on credit repair, budgeting, and homeownership-related topics. NeighborWorks Sacramento also offers down payment assistance programs.
Employer-sponsored home buyer programs
The most common type of program is an employer-matching contribution, where the employer matches a percentage of the employee's down payment or closing costs. Some employers offer interest-free loans or grants, while others partner with local housing agencies to provide additional resources and education.
These programs can be an excellent way for employees to achieve their dream of homeownership while reducing financial stress and increasing job satisfaction. However, it's essential for potential buyers to thoroughly research their employer's program and understand any restrictions or eligibility requirements before making any decisions.
Other home buyer loans and grants
Additionally, the Fannie Mae Student Loan Cash-Out Refinance program allows borrowers with student loan debt to refinance their mortgages and use the cash-out proceeds to pay off their student loans.
Frequently Asked Questions
Are there any special programs for home buyers who are self-employed or have irregular income?
Can I use grants or loans to renovate or repair an existing home instead of purchasing a new one?
How long does it typically take to complete the Homebuyer Education and Counseling course required for some assistance programs?
Are there any restrictions on the type of property that can be purchased with grants or loans, such as age or location?
A wealth of opportunity awaits
If you are a first-time home buyer and need help determining which of these programs is best for you, contact the Vierra Group. This exceptional team is ready to help you purchase your first home in Sacramento. Reach out today for a consultation and more information!
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