New My Home Assistance Program Launched by CalHFA

The MyHome Assistance Program, offered by the California Housing Finance Agency (CalHFA), is designed to support potential homeowners in managing the financial demands of purchasing a home. Recognizing that the down payment and closing costs can be significant barriers to homeownership, this program provides a deferred-payment junior loan to assist with these expenses.

Available Assistance: The MyHome Assistance Program offers a junior loan that can amount to up to 3% of the purchase price or appraised value of the mortgaged property. This loan is specifically intended to help cover the down payment or closing costs, making the home-buying process more accessible for many individuals and families. The loan is deferred, meaning that repayment is postponed under certain conditions, providing additional financial flexibility to homebuyers.

Eligibility Requirements: To qualify for the MyHome program, applicants must adhere to several guidelines:

• The program must be combined with a CalHFA mortgage.
• Applicants must be first-time homebuyers.
• The home must be occupied as the primary residence.
• Completion of a homebuyer education counseling course is mandatory.
• Homebuyers’ income must fall under specific MyHome limits, which vary depending on the type of mortgage.
• Applicants must meet the requirements set by their lender and mortgage insurer.

Property Guidelines: The program also sets forth property requirements:

• The home’s sale price must not exceed CalHFA’s established limits for the county.
• Eligible properties include single-family, one-unit residences, approved condominiums/PUDs, and manufactured housing on a permanent foundation (when combined with an FHA first mortgage).
• Condominiums must adhere to the guidelines of the first mortgage.
• The property size is capped at five acres.
• Leaseholds/Land Trusts and Co-ops are not eligible.
• The property must meet the standards of the mortgage insurer/guarantor.

Homebuyer Education: CalHFA places a strong emphasis on the importance of homebuyer education. The agency requires first-time homebuyers to use a CalHFA program to complete homebuyer education, as it is crucial for the long-term success and satisfaction of homeowners. CalHFA accepts both hard and online copies of homebuyer education counseling certificates, ensuring accessibility and convenience for applicants.

In summary, the MyHome Assistance Program by CalHFA is a significant initiative aimed at helping potential homeowners in California overcome the financial hurdles of down payments and closing costs. By providing a deferred-payment junior loan and emphasizing the importance of homebuyer education, the program supports responsible and sustainable homeownership. The program’s focus on first-time buyers, income eligibility, and property type requirements ensures that it is tailored to meet the needs of a diverse range of homebuyers in California.