When asked to name the biggest obstacle in buying a home, over one in three buyers said it was saving for a down payment. If you’ve recently been looking at Napa homes for sale, you might be feeling the same way. Fortunately, there are programs available that help put buying a home in Napa within reach by reducing the amount you need to save to purchase a property.
If you’re unfamiliar with down payment assistance programs, one of our real estate agents in Napa, CA can answer your questions and guide you to the correct sources for learning more about them.
What is Down Payment Assistance?
Most experts recommend buyers put down a minimum of 20% when purchasing a home to avoid paying private mortgage insurance or higher interest rates. However, saving that amount can be challenging for many people, especially first-time buyers.
Down payment assistance programs help you meet the down payment criteria for getting a mortgage. How much assistance you qualify for and how you receive the funding depends on how the program is structured.
The California Housing Finance Agency (CalHFA) offers the MyHome Assistance Program for first-time buyers, who the agency defines as people who haven’t owned and occupied a home in the last three years. So, even if you’ve previously owned a home, you could still qualify for assistance through CalHFA.
If you do meet the necessary requirements, you can receive:
3% up to $11,000 for homes financed with conventional or USDA loans.
3.5% up to $11,000 for homes financed with FHA loans.
You must also occupy the property as your primary residence, complete homebuyer education counseling, and meet income limits. Properties can be single-family, one-unit residences such as condominiums, or manufactured housing. “Granny units,” in-law quarters, and guest houses might also qualify.
California also has statewide and regional programs that provide homeownership assistance, some of which might help with down payment requirements based on profession or location.
Talk to Our Real Estate Agents in Napa, CA About Down Payment Assistance Programs
While a down payment assistance program can make it easier to afford a home and offer access to lower interest rates, they typically come with restrictions, have strict eligibility requirements, and could lead to a slower closing process.
In our ongoing effort to be your Napa real estate agents of choice, Connie & Jamie is committed to helping you make your homeownership dream come true! If you’d like to learn more about Napa homes for sale or down payment assistance programs, contact us online today!