California

California already ran out of money for first-time homebuyer program. Here are other options

Mother and daughter look at home for sale
Mother and daughter look at home for sale Getty Images

California is halting its first-time homebuyers down payment assistance due to a lack of funds, after launching in late March.

Funding for the California Dream For All Shared Appreciation Loan program has been “reserved” as of April 7, according to California Housing Finance Agency.

The program, initially funded by the state for $500 million and then scaled back in the 2023 budget for $300 million, provided down payment help for people buying homes for the first time in the last three years. Borrowers would only need to repay the original loan in addition to a portion of the appreciated value of the home when they sell or transfer the home.

The agency is recommending people sign up for its online newsletter for future updates on the program.

Looking for other loan assistance programs?

There are other programs that can help you with mortgage or down payments, according to the housing agency.

This includes the CalHFA FHA Program, which is an FHA-insured loan with a 30-year fixed interest rate first mortgage, and the MyHome Assistance Program, which offers deferred-payment junior loans.

Other loans, according to CalHFA, are:

CalPLUS FHA Loan Program

CalHFA VA Loan Program

CalHFA USDA Program

CalHFA Conventional Loan Program

CalPLUS Conventional Loan Program

The agency is not a direct lender. To apply, you’ll need to meet with a loan officer who will help you through the process.

This story was originally published April 11, 2023 at 10:23 AM.

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