Wondering About That Down Payment? You're not alone!
Saving for a down payment can be daunting, but it shouldn't be the reason you aren't preparing to buy a home. There are options.
In the recent housing market, most offers needed to have at least 20% of the purchase price as a down payment and the more, the better. After all, buyers have been competing against multiple offers with large down payments or all cash. This will not always be the case. Right now, we are experiencing a slow down in the market (seasonal or economic?) and buyers can get an offer accepted with less down if they have strong offers on all other counts. This opens up some options and creativity for first timers.
Of course, saving the down payment is great, but may take time. Most lenders will accept a gift for the down payment. This can be from a parent, but you should check with different lenders to see what their restrictions may be.
You can use crowdfunding to raise the money. Check these sites:
Or, check for downpayment assistance programs:
California Housing Finance Agency (CalHFA)
California Association of REALTORS® down payment resource search tool: https://www.car.org/marketing/clients/downpaymentresource
Local agency programs: HUD provides a list of all cities in California offering down payment assistance as well as special first time buyer loan plans: http://portal.hud.gov/hudportal/HUD?src=/states/california/homeownership/prgmscity
For more information on down payments or getting started on the process of purchasing a home, contact me! I'm here to help!
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