What First-time Homebuyers Need to Know about Finance
By Roger Cruzen
C.A.R. Magazine
F
irst-time buyers are full of questions.
How does bad credit affect my
chances of getting a mortgage?
Is there a difference between being pre-
qualified and pre-approved? What kind of
personal financial information will I need
to provide when I apply for a mortgage?
How does a lender decide whether or not
to approve my
loan? But as the
shortage of housing
inventory drives home
prices beyond the
reach of more and
more Californians,
first-time homebuyers
are more interested in
the answers to a differ-
ent set of questions:
Are there programs
that provide financial
assistance to people like me? How do I find
out if I qualify? And why hasn’t my agent
told me about these programs?
Real-time Access to
First-time Buyer Programs
Top Producers
Gilroy Office, 2015
Marta Dinsmore, Realtor
Intero Real Estate Services
DinsmoreThePowerOfTwo.com
408.840.7420
DRE #01352339
Sean Dinsmore, Realtor
Intero Real Estate Services
DinsmoreThePowerOfTwo.com
408.840.7327
DRE #01966405
Everyone knows the median-priced home
is out of reach for many Californians –
particularly given the size of down payment
required. What the vast majority of buyers
(and, sadly, more than a few REALTORS®
and lenders) may not know is that the
Golden State also is at the top of the list
when it comes to programs that provide
financial assistance to potential home-
buyers who otherwise might not ever be
able to come up with a down payment or
closing costs or cover other expenses that
accompany a home purchase.
A recent count reveals that Californians
have access to some 420 unique home-
buyer assistance programs for low and
moderate income individuals and families
administered by 240 federal, state and
local agencies, according to C.A.R.’s Down
Payment Resource Directory, a searchable
data base that matches homebuyers with a
laundry list of available programs based on
a number of variables. (Psst! There are even
programs available to previous homeowners,
so long as they have not owned a home for
the past three years!)
GILROY • MORGAN HILL • SAN MARTIN
MAY/JUNE 2016
The Down Payment Resource Directory
(car.org/tools) is easy to use and the ideal
tool for REALTORS® and Millennial
first-timers who prefer to do their own
research before seeking assistance from
a REALTOR® or lender. Users simply
answer a series of basic questions (How
many people live in your household?
Do you currently own a home? What
is your annual household income? Are
you or a co-borrower a veteran or Native
American? Do you or a co-borrower work
in education, law enforcement, or as a
fire fighter or health care worker? And so
on.). As the REALTOR® or client enters
this information, downpayment.car.org
instantly compiles a comprehensive list of
available programs and includes links to
their websites for more information about
qualification criteria, loan and income
limits, and other requirements–all in real
time. Among the best-known and most
popular programs agents and clients find
during their search of the Down Payment
Resource Directory are those available
through the California Housing Finance
Agency (CalHFA), founded in 1975 to help
low and moderate income families with
good credit buy homes with a mortgage
they can afford. To date, more than $19.5
billion in assistance has been invested in
qualified homebuyers. CalHFA’s MyHome
Assistance Program, launched last October,
offers up to 5 percent in assistance, low
interest rates and deferred payments to first-
time, employed buyers with good credit.
Homebuyers can combine a CalHFA first
mortgage with CalHFA’s Mortgage Credit
Certificate (MCC) program, which provides
a federal tax credit that can lower taxes and
increase a buyer’s disposable income.
Additionally, the CalPLUS FHA
program offers a first mortgage loan insured
by FHA and the CalPLUS Conventional
program, which offers a first mortgage
loan insured through private mortgage
insurance. Both loans can be combined
with the CalHFA Zero Interest Program
(ZIP) for down payment assistance and/
or closing costs. What’s more, CalHFA
has special programs for teachers, school
administrators and staff that are designed to
retain educators in communities with high-
priority schools.
gmhtoday.com
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