California loan assistance programs are available to home buyers throughout the state, which can be used for down payments and/or closing costs. The home buyer does not need to be a 1st time home purchaser in over 1/3 of the available programs, and rest do. Your mortgage lender or bank determines if the home buyer qualifies for a home assistance program. However, if you have at least a 620 FICO score and are within the income guidelines of the particular program you should. These programs are usually designed for low to mid income families. There programs are available from city, county, state and federal governments and there are community non-profit programs as well. The more local the program, the more specific the requirements to qualify.
I have already discussed the FHA, Cal FHA, Assistance Programs on those pages, please click the government program headings from the menu on the left., as well as, the HUD programs under the HUD Reverse Mtgs. or the Good Neighbor Next Door Mortgages. The programs below, have specific eligbility. I am happy to investicate those on your behalf, once I have taken an application. Just express an interest in a specific program or I can suggest one for you. Just contact me by phone or use the convenient contact link click here.
"Jaren has helped me with a home purchase loan and 2 refinances. I would certainly rely on him again should I need another home loan. He dedicated himself to finding the best loan for me, and went the extra mile to make it work. I know he will do the same for you!"
Christina H. Kelseyville, CA
Mortgage Credit Certificate (MMC) Program
What Is An MCC? -
The MCC Program offers qualified
first-time homebuyers a federal income tax credit. The
federal credit can reduce potential federal income tax liability,
creating additional net spendable income for qualified first-time
homebuyers to possibly use toward their monthly mortgage payment.
This MCC Program enables qualified first-time homebuyers to convert
a portion of their annual mortgage interest into a direct dollar
for dollar tax credit on their U.S. individual income tax returns.
The qualified homebuyer is awarded a tax credit of up to 20%
of the annual interest paid on the mortgage loan. The remaining
80% of the mortgage interest will continue to qualify as an itemized
After you receive your MCC, you can take the income tax credit every year, as long as you keep the original first mortgage and continue to live in the house as your principal home.
Income Tax Details -The MCC reduces the amount of federal income taxes due to the federal government from the homebuyer. If the MCC credit is greater than the homebuyer's tax liability, the IRS will allow the credit to be carried over for the next three years. You may wish to adjust your federal income tax withholding to receive the MCC benefit monthly. Talk to your payroll department at your place of work. By reducing your monthly withholding, you will have more disposable (after-tax) income for mortgage payments.
What Is The Difference Between A "TAX CREDIT" AND A "TAX DEDUCTION?" - A tax deduction is subtracted from your adjusted gross income before you calculate your federal income taxes. A tax credit, on the other hand, entitles you, the taxpayer, to subtract the credit from your total federal income tax bill. We are not tax advisors. If you have any questions about how your taxes will be affected, you should contact your tax accountant, or the IRS, at (800) TAX-1040.
Thanks to Los Angeles County, Community Development Commision, who originally published this article.
CA Assistance Programs:
CalFHA Programs - Click here or go CalFHA link in the menu to left.
NNF Sapphire Grant - Brorowers do not need to be 1st time home buyer, and can own other properties, but must have at least 620 FICO Score and can go up to a debt-to-income ratio of 50%. It has a 5% grant and never has to be repaid. and is available throughout CA.
City or County Programs:
Most cities and/or counties in CA have down payment/closing cost assistance programs they vary by county. Please contact your Housing Coorindator in the county or city you live in for specific details and list of providers.
Many high cost cities and counties also have specific programs to help with home purchase for public employees for there city or county. If you are a public employee and also some private companies have home purchase assistance programs pavailable. I would suggest, that you discuss those options with your HR Department. Plans are aviable form Calpers and CalSTRS employees see CalPATH below.
California State wide programs for public employees, including teachers:
CalPATH - This home loan program is for all public employees & teachers and you don't need to be a first time homebuyer. As long as you are CalSTRS or CalPERS Retirement fund member, you can use this program to purchase a new or refinace an existing home. I am an approved to make CalPATH home loans they have the following advantages:
If you qualify then you can benefit from CalPATH Program by:
1. Reduced Lender Fees & Pricing for Qualifying California Public Employees
2. Lender paid MI options available with as little as 5% down
3. Available for High Balance FHA & Conventional loans up to $625,000 loan amount
4. Free One Time Float Dow if Rates Improve during the loan process
5. Keys in 30 Days Homebuyer Commitment
Keep Your Home California - is made up of four CalHFA MAC programs that are designed to help qualified people save their home from forclosure. See a brief desciption on the CalFHA Program in the blue menu on the left side of this page or click here .
Government Employee with a Student Loans? - If you have student loans and are in public service there are loan forgiveness and consolidation programs that can help reduce the loan amounts and/or reduce interest rates. Contact the your US Dept of Education or your student loan lender to explore these options. Lowering your student loan debt can save you money with these loans and there by lower your debt-to-income ratio. Which will be benefical when applying for a home loan.
"We've worked with Jaren since 2003, and he has belped us and our family members get through the mortgage process many times.
He is very well versed in the mortgage process, and is very patient. He is by far the best broker we've have ever worked with, and always has his customers well being at the forefront of all that he does. To this day anytime, I have a mortgage question I ask Jaren.
I had him help my parents, and my children in financing their properties as well. Anytime any of my friends took to financing I send them to Jaren. Hands down I do not think there is a better mortgage broker than Jaren Dahlstrom."
H., Lathrop, CA
Call Jaren Dahlstrom, loan officer 510.215.1743 or contact me by email see contact link above if your interested in CalPath Home Loans.
For the HUD's Good Neigbor Next Door Mortgages, which is a assistance program also for Teachers, Police, Firefighters and Emergency Medical Technicians (EMT's) offered through HU. Which can help revitalize the borrower's communities, while becoming homeowners: click here or on the link see menu to left.