State expands help for first-time homebuyers

by 09 Oct 2014
The California Housing Finance Agency (CalHFA) is providing an additional $6,500 in down payment assistance to first-time homebuyers through its CalPLUS Conventional program.

The news comes after California home sales declined in August, reversing two months of increases, as the median home price rose from the previous month and year, according to the California Association of Realtors. August marked the 13th straight month that sales have declined on a year-over-year basis.

CalHFA’s ZIP Extra down payment assistance program reduces the amount of money needed to close on a home purchase.  “This is a valuable resource for those families who are ready to buy a home and have the means for their monthly mortgage payment, but haven’t been able to save enough money for a down payment,” said Tia Boatman, executive director at CalHFA.

The program will include an additional $6,500 on top of the 3% down payment it currently offers as part of its CalPLUS Conventional with Zero Interest Program (ZIP). The ZIP program provides 3% of the loan amount at 0% interest on a fixed-rate, 30-year conventional mortgage. The additional $6,500 will also be provided at 0% interest.

Borrowers can combine the CalPLUS Conventional loan with CalHFA’s other assistance programs, such as: The California Homebuyer’s Down Payment Assistance program, The Extra Credit Teacher Home Purchase program and The Mortgage Credit Certificate Tax Credit program. 



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