First Time Home Buyer Mortgage Loans in California
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 in California
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 in California
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 Homebuyer 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.
Frequently Asked Questions
If you’re a first-time homebuyer in California, you may be wondering what kind of loan options are available to you. Here are some frequently asked questions that can help you understand the process:
There are several different types of first-time homebuyer loans available in California, including FHA loans, VA loans, and CalHFA loans. Each type of loan has its own eligibility requirements and benefits, so it’s important to research your options before applying for a loan.
The amount you can borrow with a first-time homebuyer loan will vary depending on the type of loan you choose. FHA loans, for example, typically have lower loan limits than other types of loans. However, you may be able to borrow more if you make a larger down payment or meet certain income requirements.
Technically yes. While first time home buyer mortgage is prohibited from offering refinances, other lenders can offer you a refinance.
You should have a credit score of 640 or higher. However, having a higher credit score may result in better loan terms.
The loan limit for conventional, VA, USDA, and FHA loans is $647,200 as of January 1, 2022. First time home buyer mortgage maximum amount on the CalHFA is the FHFA High-Cost Loan Limit of $970,800
first time home buyer loans provide numerous advantages, but like with any financial product, there are certain disadvantages to consider. One disadvantage is that first time home buyer loans usually have higher mortgage insurance costs.
First time home buyer loans also have strict housing standards requirements. Homes must meet FHA health and safety qualifications, and only primary residences are eligible. Moreover, first time home buyer mortgage has value limits on the home – read about our non-QM loans for more flexible financing options that may better fit your needs.