A $429,000 home for $2,700/month with ZERO DOWN!

The California Housing Finance Agency (CalHFA) has helped over 155,000 Californians realize their dreams of homeownership.

They offer multiple programs that can be combined so you can borrow up to 105% of the purchase price to pay for your home and closing costs.

You can get a home or condo up to $429,000 for zero down! Click below to see what’s currently available:

Zero-down Homes

I can help make it happen

If you are paying $2,400 per month in rent (also known as your landlord’s mortgage), you can probably afford a $2,700 per month mortgage payment on a $429,000 home with little or no cash out-of-pocket. As a homeowner, you will be entitled to the mortgage interest deduction (or an IRS credit – see Mortgage Credit Certificate below) as well as a property tax deduction, so that $2,700 mortgage payment is similar to a $2,400 rent check (depending on your tax bracket, etc.)… the key difference is that you own the home and you can start building equity!

We have recently sold homes where the buyers didn’t have to put any money down, and the money they were saving for a downpayment went towards renovating their new place instead – painting the walls, changing the flooring, updating the kitchen – without needing any approval from a landlord! You could even do this if you wanted (but you should probably get approval from your spouse first): shag

Almost as good as borrowing from your parents!

The California Housing Finance Agency (CalHFA) has some little-known, state-sponsored programs that were created to make homeownership a reality for more residents. Not many people know about them because:

  1. not many Realtors are aware they exist
  2. other Realtors might not have the patience to work with first-time homebuyers
  3. only a few lenders are approved by CalHFA to offer these loans

Fortunately: 1) you found me, 2) I love house-hunting with first-time homebuyers (or I wouldn’t have done the research for this page), and 3) my office has an in-house lending partner that happens to be a CalHFA Preferred lender (meaning she has made the magic happen for many people using this program)!

Here’s how it works:

So what’s the catch?

The loan limit is $417,000 and you will need a credit score of 640 or higher. There are also income limits and requirements – you can’t make too much (if you did, you wouldn’t need assistance), but you need to make enough to comfortably afford the monthly payment (the monthly payment includes principal, interest, taxes, and insurance). You also need to take an 8-hour, online course about homeownership (sounds a lot like traffic school), and there are some additional requirements for condos. Also, the appraisal and any inspections would need to be paid upfront.

You can quickly see if you qualify using their easy, anonymous, eligibility tool (if your income is too high, there are different scenarios that could help you qualify including having only one spouse apply and hold title. You should really contact me to set up a quick meeting to discuss all your options):

Check Your Eligibility

Curious what your downpayment and monthly payments would be? They have another calculator to help estimate that. Give me a call if you need help deciding which options to select in the calculator. Your downpayment and monthly payments are affected by the Mortgage Insurance Premium which is affected by your credit score. You can elect to pay the Mortgage Insurance in a lump sum or monthly:

Monthly Payment Calculator

Ready to buy a home?

There’s no cost and no obligation to apply (my commission is actually paid by the seller of the house). When you are ready to apply, we can get you an answer quickly if you can gather these documents in advance:

  • Recent pay stubs
  • Bank and investment statements
  • Employment history
  • Previous tax returns

Once you have these documents ready, schedule an appointment with me to drop them off and discuss what you are looking for in a home, or you can email this information directly to my loan officer ahead of time so we can begin the search right away.

Click here to see homes that are $429,000 and below: Potential CalPLUS zero-down homes

Contact Darryl

Learn More about CalHFA

CalHFA has other loan programs available that I haven’t explained here. Check their website to see if you meet any of their requirements. The CalHFA website also contains detailed explanations regarding their loan and homebuying processes:

CalHFA Homebuyers Information

Assistance for teachers and school district employees

Teachers, administrators, and district employees might also be eligible for another deferred payment loan which can be used towards the downpayment. Visit the website to find out which schools and employees are eligible: CalHFA Extra Credit Teacher Home Purchase Program

Mortgage Tax Credits for First-time homebuyers

This is something I wish I was aware of when I bought my first home. Normally, the mortgage interest deduction is used to reduce the amount of income you’re taxed on. However, the MCC credit applies at the end, once you determine how much tax you owe – it’s a credit to pay your income tax. The limit of the credit is currently 20% of the mortgage interest you paid annually. If you paid $10,000 in interest, you can apply $2,000 towards the amount you owe (however, you can’t take both the mortgage interest deduction and the MCC credit – just one or the other). You should be able to reduce your withholding to accommodate the MCC credit so your paychecks will be larger. Page 4 of this PDF has a great example: Mortgage Credit Certificate Program

All of San Diego County is eligible to apply for the CalHFA Mortgage Credit Certificate program, and our in-house lender is also a participating MCC loan officer. Everyone’s tax situation is different, so you should consult with your tax professional to see how much you would benefit.

FHA

Several similar, government-insured loan programs are also available through CalHFA including Energy Efficiency grants for including the cost of energy efficient improvements into your loan – solar panels, etc. Visit: CalHFA FHA programs and Energy Efficient Mortgage Program to learn more.

More Financial Assistance

The California Association of Realtors has a handy tool to find other downpayment assistance programs especially for those employed in education, law enforcement, healthcare and the military:

C.A.R. Downpayment Resource Locator