Even with our current economic uncertainty, young, first-time buyers are bolstering local real estate.
This is due, at least in part, to the many first-time homebuyer assistance programs available to them.
Here’s a look at some of the programs these young, first-time homebuyers have access to:
The Fresno County First-Time Homebuyer Program offers eligible first-time homebuyers “a zero-interest, deferred payment loan of up to 20% of the purchase price plus closing costs, with a minimum of $1,000. Repayment of the loan is deferred for 30 years or until the primary mortgage is paid off, whichever occurs first. The balance of the loan is due upon a change of title or non-occupancy by the borrower.”
The home being purchased through this program must be in an unincorporated area of Fresno County or in Fowler, Kerman, Kingsburg, Mendota, Reedley, or Selma. Purchase price and income limits also apply.
This loan has an interest rate of zero percent and doesn’t have to be paid back if the borrower continuously occupies the home as their primary residence for five years. The loan amount is for up to 10% of the purchase price of the home … basically giving these first-time homebuyers a down payment.
The Forgivable Equity Builder Loan program is offered by the California Housing Finance Agency (CalHFA) and may only be used with a CalHFA first mortgage. There are income limits that must be met in order to qualify. And this program is only available to first-time buyers.
The CalHFA MyHome Assistance program offers a deferred-payment loan for up to 3.5% of the purchase price to help with a down payment and/or closing costs. Interest rates vary depending on the borrower’s financial circumstances (including credit score), lender fees, and other factors. Income limits apply in determining eligibility for this program, and it is available only to first-time buyers as well.
The Fannie Mae HomeReady® first-time homebuyer loan requires just a 3% down payment, a credit score of at least 620, and a salary of no more than 80% of the median income in the area.
Similar to the Fannie Mae HomeReady® loan, the Freddie Mac Home Possible® loan also requires a minimum 3% down payment and a salary of up to 80% of the area’s median income. A credit score of at least 660 is required to qualify for the 3% down payment, but it may be possible to quality even without a credit history with a 5% down payment).
Professional Guidance is Advised
With so many options available — including some not listed here — it is advisable for young, first-time buyers to speak with both a realtor and a mortgage loan officer experienced with the programs.
You can get the help and professional guidance you need from the team here at Foxen Realty.
Send us a message or call us at 559-490-0207 today to start the conversation.