09/28/2023

 The latest data from the National Association of Realtors (NAR) shows that first-time homebuyers accounted for 28% of total U.S. home sales in the first half of this year, up from 27% in the same period last year. From 2021 to 2022, the median age of first-time homebuyers will rise from 33 to 36. The biggest hurdle first-time homebuyers face is where to get the down payment for their first home. The California government has long offered down payment assistance programs for first-time homebuyers. Here, we’ve compiled a list of Government Down Payment Assistance programs offered by counties in California. Maybe there’s one for you! Let’s see which one you need!

Santa Clara County $250,000 Down Payment Assistance

Empower Homebuyers is Santa Clara County’s down payment assistance loan program for first-time homebuyers. This program provides assistance up to $250,000 (not to exceed 30% of the purchase price)!
0% interest on the assistance portion and no monthly payments! It only needs to be paid back when the loan matures, the property is sold, or you refinance. You will need to repay the assistance amount and some of the increase in the value of your home.
Share the Appreciation: When you sell your home, you need to share a portion of the appreciation with Santa Clara County. There is a cap during the first ten years of the loan term and no cap after ten years. The allocation of the appreciation depends on the ratio of the amount of the assistance to the purchase price of the home.
*Assuming a borrower purchases a home for $600,000 and uses 20% ($120,000) down payment assistance, if the house sells for $800,000, the borrower will owe $120,000 (original loan amount) plus $40,000 (i.e. 20% of the appreciation of the $200,000), Total $160,000.

The minimum down payment for borrowers is 3%
No maximum price limit
Total annual household income must not exceed 120% of the Santa Clara County median income.

Los Angeles $85,000 Down Payment Assistance

The Los Angeles County Development Authority (LACDA) launches the HOME OWNERSHIP PROGRAM program, which provides down payment assistance up to $85,000 or 20% of the home price (whichever is lower), 0% interest, and no monthly payments!
You only have to repay the assistance portion when the home is sold or when ownership of the property changes. If the house is sold within 5 years, 20% of the increase in the value of the house needs to be returned to LACDA; if the house is sold after 5 years, only the assistance amount is repaid.
Applicants must make a down payment of at least 1% (excluding fees) and a maximum down payment of $150,000.
The maximum purchase price of the house is $700,000.
Total household income must not exceed 80% of the Los Angeles median income.

San Diego 17% Down Payment Assistance

San Diego County’s assistance program provides down payment assistance up to 17 percent of the home’s appraised value or purchase price, whichever is lower.

The interest rate on the aid portion is 3% and the term is 30 years.  No repayments are required for 30 years. Repayment is only required when the property is sold, transferred, rented or the loan matures.
The borrower’s minimum down payment, excluding the assistance component, is 3%; the total down payment cannot exceed 25% of the home price.
Total household income must not exceed 120% of the San Diego median income:

Statement: This article was edited by AAA LENDINGS; some of the footage was taken from the Internet, the position of the site is not represented and may not be reprinted without permission. There are risks in the market and investment should be cautious. This article does not constitute personal investment advice, nor does it take into account the specific investment objectives, financial situation or needs of individual users. Users should consider whether any opinions, opinions or conclusions contained herein are appropriate to their particular situation. Invest accordingly at your own risk.