California CalHFA MyHome Assistance Program Guide

Guide to the California CalHFA MyHome Assistance Program

The California CalHFA MyHome Assistance Program is designed to help first-time homebuyers in California achieve homeownership by providing financial assistance for down payments and closing costs. This program offers up to 3.5% of the home purchase price, allowing eligible buyers to reduce the upfront costs of purchasing a home. Below is an updated guide for 2025, detailing eligibility, application steps, and benefits.

1. Program Overview:

• Purpose: The CalHFA MyHome Assistance Program provides financial support to first-time homebuyers to cover down payments and closing costs. This initiative is aimed at making homeownership more accessible to those who may struggle to save for a large down payment.
• Assistance Amount: The program offers up to 3.5% of the home purchase price or appraised value, whichever is lower. This assistance can be used for down payment and/or closing costs.
• Loan Terms: The assistance is provided as a deferred, 0% interest loan. Repayment is due only if the home is sold, refinanced, or no longer serves as your primary residence within a specified time period, typically 30 years.

2. Eligibility Requirements for 2025:

To qualify for the CalHFA MyHome Assistance Program, applicants must meet the following criteria:

• First-Time Homebuyer: The program is designed for first-time homebuyers, which is generally defined as individuals who have not owned a home in the past three years. Some exceptions may apply based on location or special circumstances.
• Income Limits: Your household income must be within the program’s income limits, which vary by county and family size. These limits are updated annually to reflect the local housing market and economic conditions.
• Credit Score: A minimum credit score of 660 is required to apply. Some flexibility may be allowed depending on other factors like your debt-to-income ratio or the size of the loan.
• Property Requirements: The home being purchased must be located in California and must serve as your primary residence. The home must meet the program’s price limits and other qualifying criteria.
• Homebuyer Education: All applicants must complete a homebuyer education course, which ensures you are well-prepared for the responsibilities of homeownership and managing a mortgage.

3. How to Apply:

The application process for the CalHFA MyHome Assistance Program involves the following steps:

• Assigned Loan Officer: After starting the application, you will be assigned to a loan officer who will assist you throughout the process. They will help you verify your eligibility, collect required documents, and guide you through the steps to secure the assistance.
• Required Documentation: You will need to provide various documents, such as proof of income, tax returns, credit history, and a certificate of completion from the homebuyer education course.
• Submit Your Application: After gathering all required documents, submit your completed application to your loan officer, who will process it and inform you of your eligibility for the program.

4. Homebuyer Education Course:

• Mandatory Requirement: All applicants must complete an approved homebuyer education course, which covers topics such as understanding mortgages, budgeting for homeownership, and managing financial responsibilities.
• Course Availability: The course is available both online and in-person, and you will receive a certificate of completion after finishing the course. This certificate must be submitted as part of your application.

5. Down Payment and Closing Cost Assistance:

• Assistance Amount: The CalHFA MyHome program offers up to 3.5% of the home purchase price to be used for down payment and/or closing costs. This assistance is in the form of a deferred loan, meaning it does not require repayment unless the property is sold or refinanced before the end of the loan term.
• Loan Terms: The assistance is a deferred, 0% interest loan. Repayment is only required if the home is sold, refinanced, or no longer serves as your primary residence. The loan typically has a 30-year term, but it does not require monthly payments.

6. Finalizing the Loan:

• Approval Process: After your application is processed and approved, your loan officer will help you with the final steps, including signing the loan documents and preparing for closing.
• Closing Costs: In addition to down payment assistance, you may need to pay some closing costs that are not covered by the program’s assistance. Your loan officer will explain which costs are covered and which are your responsibility.

Our experienced loan officers are here to assist you through every step of the application process. They will help ensure you understand how the CalHFA MyHome Assistance Program can benefit you and guide you through the necessary steps to make homeownership a reality. With their support, you can confidently take the next step toward purchasing your new home in California.