The state of California recently announced a new 20% down payment assistance program for first-time homebuyers, aimed at making it easier for low- to moderate-income residents to purchase a home. This program is being funded through the California Housing Finance Agency (CalHFA) and is set to begin in the summer of 2023.
The program is open to individuals or families who have not owned a home in the last three years, meet income limits, and are purchasing a home in California. The program offers up to 20% of the purchase price or appraised value of the home, whichever is less, to be used as a down payment. This assistance does not need to be repaid and is a grant, meaning it does not add to the buyer’s debt.
This program has the potential to greatly benefit first-time homebuyers by reducing the upfront costs of purchasing a home. For many, the down payment is a significant barrier to homeownership, especially in California’s competitive housing market. With the 20% down payment assistance program, buyers may have more options and flexibility when it comes to choosing a home that fits their needs and budget.
Additionally, the program may also lead to more stable homeownership and a stronger middle class. Research has shown that homeownership can lead to better financial outcomes, such as higher household wealth and greater stability. Contact Block By Block Realty today to learn more about this exciting program