California First Time Home Buyer Loans
Are you a first time home buyer? Looking for a great deal on first time home buyer mortgage loan in California? You’re in luck! California offers many opportunities for first time home buyers to secure a home at a great interest rate. As one of the leading lenders in Los Angeles and surrounding areas, LBC Mortgage has the knowledge and expertise to help you get the best possible deal for your unique needs.
If you’re interested in learning about the types of home buyer loan programs you can take advantage of, read on for more details!
Government Loans for First Time Home Buyers
The California Housing Finance Agency or CalHFA offers a wide range of loan programs to help first time home buyers in California buy a home. For example, the CalHFA program is an FHA (Federal Housing Authority)-insured loan that offers a 30 year fixed interest rate mortgage to new homeowners.
There’s also the CalPLUS FHA program, which has a slightly higher 30-year fixed interest rate than the regular CalHFA FHA program. The difference is that this type of first time home buyer loan is combined with the CalHFA Zero Interest Program (also known as ZIP) to help with closing costs.
Similar to the national-level VA program, California also has the CalHFA VA program. This is a 30 year fixed rate mortgage also designed for first time homeowners. There’s also the CalHFA USDA program which is a first mortgage loan guaranteed by the USDA that can be combined with the MyHome Assistance program.
Conventional Loans for First Time Home Buyers
California first time home buyers will also be glad to know that CalFHA offers conventional home loans too. These loans are insured through PMI or Private Mortgage Insurance and the rates are fixed for the 30 year term. There’s also the option, like with the government loan, to pay a higher interest rate and take advantage of the ZIP program for your closing costs.
Need Help with Making a Down Payment?
Coming up with minimum down payment can be a major hurdle for many first time homeowners in California. Fortunately there are many different options for assistance with making the down payment and closing cost. These types of loans are called subordinate loans which means that you don’t need to start making payments on them until your home is sold, refinanced or paid off, making the mortgage payments much more affordable.
It’s important to note that with deferred payments, there may be some requirements associated with your loan. For example, the MyHome program offers a smaller loan for the lesser amount of 3.5% of the home’s purchase price or appraised value. Other programs like the USDA and Conventional loan programs offer an amount up to the lesser of 3%. The point is that when it to getting the best deal on your first time home buyer mortgage in California, whether you need down payment or closing cost assistance or not, it’s a good idea to work with a California home loan expert that understands the unique needs of first time home buyers and can work with you to help you maximize your savings while helping you to afford the home you’re looking for.
And in the California real estate market, homes are bought and sold at an incredible rate. Although the markets are competitive, working with a professional can make a huge difference in how much you pay — and for first time homeowners, it’s all about the savings.
Why Choose LBC Mortgage as Your First Time Home Buyer Loan Specialist?
At local Los Angeles LBC Mortgage office, we help prospective homeowners throughout California get great deals on their home loans. First time homeownership can feel like a daunting process — so many rates and requirements and eligibility steps to follow. However, when you work with a team that is dedicated to your success, the results are nothing short of outstanding. We invite you to read our countless testimonials from first time home buyers who chose us when looking for the best lender in California to help them buy their first home.
And when you’re ready for us to help you, give us a call or fill out the form here on our website. We’ll work with you to help you better understand the terms, and help you get the best rate for your California first time home buyer loan — even if you have a complex or unusual situation.