First time home buyer programs in Orange County CA can no longer be considered a privilege; rather it has become a necessity. California was classified as the harshest state in the country for first time home buyers. First time home buyers usually fall under the millennial age-group of 18-34.
Why is it so difficult for first-timers?
First time home buyer requirements are very high, especially in terms of economic intake. The state of California takes away high fractions of a taxpaying worker’s income in housing expenses. People in that archetypal first-time home buyer age-group are bound to face a problematic time to budget out a mortgage payment of Californian standards.
How is the government helping to solve this problem?
The California Housing Finance Agency, commonly known as Cal-HFA, has offered numerous loan programs to provide assistance to competent first-time home buyers in getting a mortgage.
Who qualifies for the first time home buyer loan programs?
If a candidate hasn’t possessed and occupied his own residential home for the last three years, he is considered to be a first-time home buyer in California. For such candidates, choosing one of the several government grants for first time home buyers is the perfect way to owning a home.
Whom is it meant for?
Closing cost and down payment assistance are obtainable for low or moderate-income range mortgages. So essentially, these plans have been devised to help the people who can’t afford to help themselves. Condos, customized homes, and properties with guestrooms are also included in these grants.
Some other criteria –
- The property in question has to be located within the state limits of California and be the mortgager’s chief residence up until it is sold off or re-financed.
- In order to qualify for first time home buyer mortgage, debtors must qualify as first-time home purchasers. They must also qualify as certified American citizens, permanent inhabitants or qualified foreigners.
- If the applicant has a credit score of over 640, they are seen as more suitable for the program.
- It is essential that they match all salary and sales value necessities of the creditor and mortgage guarantor.
- Be it from a government certified organization or via a qualified real estate agent, the applicant must take an official home buyer instruction course and get a documentation of completion.
- Leaseholds, land trusts or co-ops are not allowed in the program.
- The property in question must be less than 5 acres in size.
There could be further program-specific necessities that need to be abided by.
The best first time home buyer programs in Orange County CA
Cal-PLUS Conventional and Cal-HFA Conventional Loan Programs
Even the best realtor in California Orange County will advise first-timers to go for this program. Why?
- They are preferred by Fannie Mae HFA.
- They have thirty-year terms.
- The interest rates are fixed.
- The rates are subject to the candidate’s financial conditions, lender charges, and other parameters.
Cal-PLUS Conventional loans can be used jointly with the Cal-HFA Zero Interest Program to decrease down-payment or closing expenses.
Cal-HFA FHA and Cal-PLUS FHA Advance Programs
These two first time home buyer programs in Orange County CA are quite useful because –
- They offer government-insured advances for first-time home purchasers.
- They can be added to some California-based down payment and closing-cost help programs.
- Both these programs permit manufactured homes on condition that they are constructed on a solid foundation.
- For down payment assistance, Cal-HFA FHA loan can be added to the My-Home Assistance Program or else with the School Teacher, Employee Assistance Program.
Cal-EEM plus Grant PROGRAM
The Cal-EEM + Grant program is another great initiative devised to help first-time buyers. It has a thirty-year term and fixed interest rates.
To provide assistance to debtors in their quest to make energy-efficient developments that are over the prescribed limit set by the FHA, this mortgage is supplemented with a funding of up to 4% of the whole loan sum.
First time home buyer programs in Orange County CA, are designed to help people buy homes in the State. However, the people should also help themselves by thoroughly going through various programs, selecting what’s best for them.
Gerry Goodman Real Estate Services is a leading firm in the real estate game. With the goal of serving all of their clients, the firm has also been fruitful in delivering important information regarding first time home buyer programs in Orange County CA. The company currently operates in Orange County CA, in the cities of Anaheim, Huntington Beach, Anaheim Hills, Newport Beach, Yorba Linda, Tustin, Dana Point, Laguna Beach, Irvine, and Aliso Viejo.