Down Payment and Closing Costs Assistance In Corona, CA , by Jenny Gonzalez.

Down Payment and Closing Costs Assistance In Corona, CA.

By Jenny Gonzalez

First-time home buyers have a lot to deal with especially right now when prices are soaring. In fact, in Corona, Ca the median listing home price was $700K back in January up by 21.8% year over year. The median listing home price per square foot was $351. It is still a sellers’ market which means that more people are looking to buy than there are homes available for sale.

Looking at the average days on the market data shows that homes in Corona sold after 54 days on the market. The trend for the median days on market in Corona, CA has gone up since last month.

As such, down payment assistance would be a welcome move to many people. Statistics prove that many people still do not know that it is possible to get down payment assistance and of the few that know about these programs, many believe that down payment assistance is for the disadvantaged. These myths, misconceptions, and much other misinformation are some of the topics we try to debunk on our weekly segment of The Power Is Now Homebuyers Townhall.

When purchasing a home, making a downpayment is a must! But with the current hefty price tags of homes in Corona, CA, raising the money for the down payment seems impossible.

That’s not all that a new homebuyer has to worry about, closing costs are another factor that has to be considered. This, therefore, means that even if you have saved up some cash to cover your downpayment, closing costs can drain down your efforts, you might just realize that you still owe some thousands of dollars in closing costs, which you might not afford at that particular point in time.

So, is there any help for you? Well, if you are in the state of California, you might qualify for a forgivable loan down payment and closing costs through down payment and closing cost assistance programs if you meet certain criteria.

WHAT IS DOWN PAYMENT AND CLOSING COST ASSISTANCE PROGRAMS?

Although some mortgage programs require no down payment, a vast majority of others require that you make a down payment. The down payment is a substantial amount of cash equal to a certain percentage of the home’s price.

Every state has its assistance programs for first-time homebuyers. Most times, the state housing commissions under the HUD offer these assistance programs to low and middle-income homebuyers. Non-profit organizations and private mortgage lenders also offer assistance. Forgivable loans, deferred-payment loans, and low-interest loans are called second mortgage loans and are usually offered to the homebuyer once the first mortgage is concluded.

HOW TO QUALIFY FOR A FORGIVABLE LOAN DOWN PAYMENT AND CLOSING COSTS ASSISTANCE PROGRAMS

The requirements to qualify for a forgivable loan down payment and closing costs differ from state to state. Some states have less strict requirements than others. For example, to qualify for a forgivable loan in cities like New York, you must earn a considerable amount of income.

Aside from the income, the other requirement you must meet is the credit score. These assistance programs require you to have a minimum FICO score of 620 and above. Other requirements include;

• You must be a first-time homebuyer • You must reside in the home for a number of years • The home must be situated in a particular place according to the program • The borrower must complete their classes in finance and homeownership • The property chosen must be a single-family home • You must choose a suitable lender ready to work with the program

Interestingly, there are about 2,000 DPA programs available countrywide. However, choosing the best from this figure can be confusing. Also, it’s important to note that these programs vary by location. Different programs are located in different areas and come with different requirements or terms and conditions. But if you’re looking

for the best DPA program around California, I highly recommend you to consider using the Golden State Finance Authority program.

GSFA is a public agency/entity providing affordable housing programs. As a public entity in California, GSFA has distinguished itself as a leader in affordable housing finance, where it has helped over 80,000 individuals and families purchase a home over the last two decades.

Moreover, the entity has provided more than $859 million in down payment assistance and has participated in the financing of over $13.7 million in first and second mortgages, according to Carolyn Sunseri, the Marketing Director of the Golden State Finance Authority (GSFA).

GSFA has two affordable housing programs; the GSFA Platinum Program and the GSFA Open Doors Program, which are accompanied by down payment assistance up to 7% of the mortgage loan amount.

“What that looks like is that on a $300,000 mortgage loan, 7% assistance is $21,000. So, by utilizing a program through GSFA, you’re getting a mortgage loan at a competitive interest rate, and then you’re being provided with $21,000 to put towards your down payment,” Carolyn explains. “Most of the time, that’s going to cover all of what you need in down payment money, and possibly even give you some assurance towards your closing cost.”

WHAT MAKES GSFA UNIQUE

You might be wondering why I’m highly recommending GSFA programs to you. Well, there are many legit reasons, but the most important to note is their flexibility and accessibility. In most other programs, you do not qualify if you aren’t a first-time homebuyer. But at GSFA, you do not have to be a first-time homebuyer to qualify for a DPA.

WHAT IS GOLDEN STATE FINANCE AUTHORITY (GSFA)?

“You don’t have to be a first-time homebuyer to qualify,” Carolyn states. “So, it could be someone returning to the housing market that owned a home in the past and wants to purchase a primary residence, or it could be somebody who’s first-timer buying a home, or maybe even leaving a home today and want to buy a home they’re going to be moving into as their primary residence.”

Additionally, GSFA allows the FICO score, which goes as low as 620, further demonstrating its flexibility and another reason why I highly recommend it. “I think this is very flexible and allows a lot of people who may have perfect credit to be able to qualify with a mortgage loan with mortgage fund assistance,” Carolyn adds.

CONCLUSION

Coming up with a down payment is the most difficult thing when purchasing a home. However, you need not rack your head about how to raise funds to purchase that expensive home in Corona, CA with the plenty of options available.

With assistance programs, you can get help raising funds for the down payment and closing cost. You can qualify for a forgivable loan and avoid paying closing costs once you fulfill all the requirements.

If you are unsure if you would qualify for a forgivable loan down payment and closing cost, or don’t know where to look for the right one, don’t hesitate to reach out to us. We are experienced real estate advisors that will act in your best interest. We will also help you to get the best house deal in Corona, even with the rising home prices.