The dream of home ownership is challenging for most people. Therefore, it's an impressive achievement when your hard work pays off, and you decide to purchase a home for the first time. Buying a home in the illustrious Los Angeles area makes it even more outstanding.
To celebrate your success, Craig & David Homes wants to ensure you get the help you need and deserve when buying your first home. This guide to first-time home buyer programs, loans, and grants is designed to help you understand what's available for anyone looking to buy a home in Los Angeles.
First steps to home ownership
Whether you love glistening beaches or cityscape views of the area from a nearby hillside, Los Angeles has everything you could want.
Before diving into homeownership, you should look into finding a qualified real estate partner to work with. A real estate agent will be your best asset in the hunt.
First-time home buyer programs in L.A.
CalHFA requires you to work with an approved lender or loan officer to ensure you can get a mortgage. You must also meet specific CalHFA eligibility requirements, including the following:
- Being a first-time home buyer.
- Meeting CalHFA income limits and loan requirements of the mortgage issuer.
- Planning to use the residence as your primary home.
- Completing homebuyer education counseling and obtaining a certificate of completion.
Homebuyer Education Counseling will cost a one-time fee of $99 if completed online. In-person counseling fees will vary based on the agency.
Once you have established whether you meet the requirements for mortgage assistance and completed the required counseling, you must decide which programs you are eligible for. These can be broken down into two sections, depending on whether you want a conventional or government loan.
Conventional loan options
- Be a primary resident.
- Complete the counseling.
- Meet income limits.
- A single-family residence, condominium, or manufactured home.
- In a USDA-eligible rural area.
Your interest rates will vary based on your financial situation, lender fees, etc. Therefore, it is crucial to consult with your lender to find accurate interest rate fees that may be included with your loan.
The CalPLUS Conventional Program is also available. It has the exact basic requirements, but it's a conventional first mortgage with a slightly higher 30-year fixed interest rate. It also gives you the added benefit of the CalHFA zero-interest program for closing costs.
Other first-time home buyer assistance programs
In addition to being a U.S. citizen, a first-time home buyer, and having the appropriate income, you must also:
- Have a FICO score of at least 660.
- Attend a homebuyer education class.
- Use it as your primary residence.
- Be able to contribute at least 1% of the home price as a down payment.
- Potentially see a reduced income tax liability.
- Increase your disposable income amount.
- Qualify for a higher mortgage.
- Receive tax credits annually for the lifetime of your first home mortgage.
Know what to expect before buying your dream home
You can get advice from your chosen lending agent or help from a Realtor who knows how to help you understand the requirements and find a home that allows you to qualify.
Before missing out on something that may help you have your dream home and have it be more affordable, contact Craig & David Homes. They will be happy to help you determine the best options for your circumstances as a first-time home buyer and keep your costs as low as possible.