Bridging the Gap: Down Payment Assistance and Closing Cost
Most Down Payment Assistance Programs are provided to the mortgage-ready borrower through grants and deferred seconds funded by states and local governments through:
The home investment partnerships program is administered by HUD an designed exclusively to create affordable housing for low-income households.
Grants are funds that do not have to be paid back, but often have to be paid back if the borrower sells his or home within a certain period of time.
Many down payment assistance programs come in the form of a second mortgage that has a low interest rate and/or deferred payments
CalHFA offers several options for down payment and closing cost assistance. This type of assistance is often called a second or subordinate loan.
My home assistance program offers a deferred-payment junior loan of an amount up to the lesser of three and half percent (3.5%) of the purchase price or appraised value to assist with down payment and/or closing costs.
The extra credit teacher home purchase program (ECTP) is for teachers, administrators, school district employees and staff members working for any California K-12 public school, which includes Charter schools and county/continuation schools. Applicants must also be first-time home-buyers.
Down Payment Assistance Loan Program City of Santa Ana Housing & Neighborhood Development:
The Program offers zero percent, deferred payment loan of up to $40,000.- Home-buyer Assistance funds can help meet both a borrower’s down payment and Closing cost requirements.
Funds are limited-First Come, First Served!
What is needed to qualify:
- Home must be located in Santa Ana
- Home must be Owner Occupied
- Borrowers must have an acceptable credit history and be prequalified for a first mortgage.
- Household income must not exceed maximum income limits
- Attend a pre-purchase housing counseling
- Make a down payment of at least 3% from your own funds
