Need help stretching your budget? These California financing programs could help

Buying a home, especially in Sacramento, isn’t cheap.

To buy a house, people usually use some of their own money as a down payment, plus borrowed money in the form of a loan or mortgage. Some people can also qualify for an additional loan, called a junior loan, to help pay for their down payment or closing costs, according to the California Housing Finance Agency.

The Sacramento-based state housing agency provides a range of loan options for families with low to moderate incomes, including some options that are interest-free.

But first, you must qualify. You can sift through the “borrower eligibility” and “property eligibility” tab or use the agency’s eligibility calculator to determine which program is right for you.

Here are several financing programs through the California Housing Finance Agency:

GOVERNMENT LOANS

• CalHFA Loan Program — A Federal Housing Administration-insured loan with a 30-year fixed interest rate first mortgage.
  
  
• CalPLUS FHA Program — An FHA-insured first mortgage with a slightly higher 30-year fixed interest rate, combined with the California Housing Finance Agency’s Zero Interest Program for closing costs.
  
  
• CalHFA VA Loan Program — A Veterans Affairs-insured loan with a 30-year fixed-interest-rate first mortgage.
  
  
• CALHFA USDA Program — A U.S Department of Agriculture guaranteed first mortgage loan program with a 30-year fixed-rate first mortgage.
  
  

CONVENTIONAL LOANS

• CalHFA Conventional Program — A first mortgage loan insured through private mortgage insurance on the conventional market. The interest rate is fixed throughout the 30-year term.
  
  
• CalPLUS Conventional Program — A conventional first mortgage with a slightly higher 30-year fixed interest rate, combined with the California Housing Finance Agency’s Zero Interest Program for closing costs.
  
  

DOWN PAYMENT ASSISTANCE

The down payment you put toward a home purchase is an important step in the homebuying process — and often one of the largest hurdles for first-time buyers.

Here are some down payment assistance programs through the California Housing Finance Agency. No payment is required until the home is sold, refinanced or paid in full.

• MyHome Assistance Program — This is available for both FHA and conventional loans offered by the California Housing Finance Agency. For FHA loans, it offers a deferred-payment junior loan worth up to 3.5% of the purchase price or appraised value of the home, whichever is less. For conventional loans, that percentage drops to 3%.
  
  

A “forgivable” option:

• Forgivable Equity Builder Loan — This interest-free loan aims to give first-time homebuyers instant equity. It’s a forgivable loan of up to 10% of the home’s purchase price. The loan can only be used with a California Housing Finance Agency first mortgage and is forgivable if the borrower uses the home as a primary residence continuously for five years.