From the First Team blog:
Good news for California residents, the California Housing Finance Agency is making it easier for first time home buyer’s to secure a low down payment with the CHDAP 3% down payment assistance program. CalHFA has reduced the buyer’s minimum to just 1% in certain cases which means now is a great time to get into the market.
Experts predict home prices to rise in Los Angeles and Orange counties as well as in the Inland Empire. The rise is coming at a steady pace which means the market is recovering and becoming sustainable once more, but that also means that buying sooner rather than later is the best course of action.
What is CHDAP?
It stands for California Housing Downpayment Assistance Program and the program works almost like a grant. The state loans you money, up to 3 percent of the sales prices as a deferred-payment junior loan, and you don’t have to pay back the loan unless you refinance or sell the property.
How do you qualify for CHDAP?
Here a quick checklist to find out if you are eligible.
- Who: You must be a first time buyer purchasing a primary residence (sorry, no investment properties). You qualify as well if you haven’t owned a home in the last three years so if you lost your home to a short sale or foreclosure but are ready now for homeownership after a three year waiting period, this is your chance. Special exceptions for qualified veterans and properties in designated target areas.
- What: You must be purchasing a single family residence. Condos are allowed but must be approved by the state. Manufactured housing is not allowed.
- Where: You must be a resident of California. The program is available in all counties including L.A., Orange, Riverside, San Bernardino and San Diego.
- How: You must complete a home buyer education class. These classes are simple and easy and can be completed online.
- How Much: You must fall within the specified income range. Check out the table here. The program is designed to aid low to moderate income families so if you make too much this program is not for you. The range is based on county as well was the number of people living in the house.
What is the home sales price range?
The home sales price range varies depending on which county you are in. Here’s just a quick breakdown of Southern California counties and their ranges. The highest available prices are for specified targeted areas.