For First-Time Home Buyers- Down Payment Assistance

DOWN PAYMENT ASSISTANCE & HOMEBUYER PROGRAMS

You May Be Closer to Homeownership Than You Think

Don't let the down payment keep you from buying a home.

Many homebuyers believe they need a large down payment before they can purchase. Depending on your qualifications and the programs available, there may be options to help reduce the amount of money you need to bring to closing.

MGB FINANCIAL SERVICES, INC.

30+ Years of Mortgage Experience
Underwriter Review of Your Loan Scenario
Purchase • Refinance • Down Payment Assistance • Alternative Loan Programs

Find Out What You May Qualify For

[ CHECK MY ELIGIBILITY ]
[ GET PRE-QUALIFIED ]

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NEED HELP WITH YOUR DOWN PAYMENT?

The down payment is one of the biggest concerns for many prospective homebuyers—but you may have more options than you realize.

Depending on the loan program, your income, credit, property, location and other eligibility requirements, assistance may potentially be available toward:

• Down payment
• Closing costs
• First-time homebuyer assistance
• Low-down-payment financing
• Deferred-payment assistance programs
• State or local homebuyer programs
• Other eligible homeownership assistance

Programs, funding and eligibility requirements vary and are subject to change.

Let MGB Financial Services review your situation before you assume you don't have enough money to purchase a home.

[ SEE WHAT I MAY QUALIFY FOR ]

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HOW MUCH DOWN PAYMENT DO YOU REALLY NEED?

You May Not Need 20% Down

One of the biggest misconceptions about buying a home is that you must have a 20% down payment.

That isn't necessarily the case.

Depending on your qualifications, several financing options may be available with substantially less money down.

At MGB Financial Services, Inc, we help California homebuyers explore available programs and determine which mortgage and assistance options may fit their financial situation.
 
Don’t Let the Down Payment Keep You From Exploring Homeownership
Depending on the program and your qualifications, assistance may help with:

• Down payment
• Closing costs
• Upfront home-purchase expenses
• Reducing the amount of personal savings needed to purchase

Programs vary by location, income, loan type, property, funding availability, and borrower qualifications.
 
Check My Down Payment Assistance Eligibility. - click here

What Is Down Payment Assistance?

• Down Payment Assistance programs are designed to help qualified homebuyers overcome one of the largest barriers to homeownership—the upfront cost of purchasing a home.
• Assistance can come from state and local housing agencies, cities, counties, nonprofit organizations, and other approved sources.

 
Not all Down Payment Assistance is free money. It is important to understand how each program works before selecting one.
 
Types of Down Payment Assistance
1. Grants

• Some programs provide qualified buyers with funds that may not have to be repaid, provided all program requirements are satisfied.
• Grant availability varies significantly by location and funding.

 
2. Forgivable Loans

• Some assistance is provided as a second loan that may be forgiven after the homeowner meets specified requirements, such as occupying the property as a primary residence for a required number of years.

 
3. Deferred-Payment Loans
With certain programs, monthly payments on the assistance loan may not be required immediately.
Instead, repayment may be deferred until a specified event, such as:

• Selling the property
• Refinancing
• Paying off the first mortgage
• Reaching another repayment event specified by the program

 
4. Low-Interest Second Mortgages

• Some programs provide assistance through a second mortgage with favorable financing terms.

 
5. Shared Appreciation Programs

• Certain programs may provide substantial assistance in exchange for repayment of the original assistance plus an agreed-upon share of the home's future appreciation.

 
6. Matched Savings Programs

• Certain nonprofit or community programs may match money that an eligible homebuyer saves toward purchasing a home.

 
California Down Payment Assistance
California homebuyers may have access to programs offered through the California Housing Finance Agency (CalHFA) and other eligible local housing programs.
 
CalHFA MyHome Assistance Program

• The MyHome Assistance Program is designed to help eligible first-time homebuyers with down payment and/or closing costs.
• For qualifying CalHFA FHA transactions, MyHome may provide a deferred-payment junior loan of up to the lesser of 3.5% of the purchase price or appraised value.
• For qualifying CalHFA Conventional transactions, assistance may be available up to the lesser of 3% of the purchase price or appraised value.
• Eligibility requirements apply, and borrowers generally must meet applicable first-time homebuyer, income, occupancy, property, education and underwriting requirements.

 
FHA Loans
As Little as 3.5% Down for Qualified Borrowers

• FHA financing can be an attractive option for buyers who do not have a large down payment.
• Qualified borrowers may be able to purchase a home with a minimum 3.5% down payment, subject to FHA and lender requirements.
• FHA financing may also be combined with certain approved Down Payment Assistance programs when program and FHA requirements are satisfied.
• This may be especially helpful for a buyer who has sufficient qualifying income to make the monthly mortgage payment but needs assistance with the upfront cost of purchasing a home.

 
Conventional Loans
Options May Start With 3% Down

• Many homebuyers mistakenly believe that a conventional mortgage always requires a 20% down payment.

 
Qualified borrowers may have conventional financing options requiring as little as 3% down.

• Certain Down Payment Assistance programs may also be used with eligible conventional mortgages.
• Your options will depend on factors such as your income, credit profile, occupancy, property type and the particular loan and assistance program.

 
VA Home Loans

• Eligible veterans, active-duty service members and certain surviving spouses may qualify for a VA-guaranteed home loan with no down payment required by VA, provided applicable requirements are satisfied.
• VA financing can provide an important path to homeownership for eligible borrowers.
• A down payment may still be required in certain situations, including when the purchase price exceeds the VA-determined reasonable value or depending on entitlement and lender requirements.

USDA Home Loans
100% Financing May Be Available

• USDA Rural Development offers eligible borrowers the opportunity to purchase a qualifying primary residence in an eligible area with 100% financing and no down payment.
• USDA loans are not limited exclusively to remote farming communities. Eligibility is determined by the property's location and the household's qualifications.
• Income, occupancy, property and other program requirements apply.

 
Who May Qualify for Down Payment Assistance?
Every program has its own requirements. Depending on the program, qualification may consider:
 
Income Limits

• Many programs establish maximum household income based on household size and location.

 
First-Time Homebuyer Status


Some programs are limited to first-time homebuyers, while others may permit eligible repeat buyers.
 
Credit Qualification

• Minimum credit requirements can vary by mortgage and assistance program.

 
Debt-to-Income Ratio

• Your monthly debts compared with your qualifying income may affect eligibility.

 
Purchase Price Limits

• Certain programs establish maximum eligible home purchase prices.

 
Property Location

• Some assistance is available only in particular cities, counties or designated geographic areas.

 
Residence

• Many programs require the buyer to occupy the property as their primary residence.

 
Homebuyer Education

• Certain programs require completion of an approved homebuyer education course.

 
You May Still Be a First-Time Homebuyer

• Did you own a home in the past?

 
Don't automatically assume that you are no longer considered a first-time homebuyer.

• Depending on the specific program definition and your prior ownership history, you may still qualify as a first-time homebuyer.
• Let us review your situation before you rule yourself out.

 
What If I Have Some Money Saved?
You may still want to explore Down Payment Assistance.
If you qualify, using an assistance program could potentially allow you to preserve some of your available funds for:

• Emergency reserves
• Moving expenses
• Furniture
• Repairs or improvements
• Other costs associated with becoming a homeowner

However, assistance programs can have different interest rates, repayment requirements, fees and restrictions. We can help you compare the available financing options rather than focusing only on the amount of assistance.
 
Which Program Is Right for You?

• There is no single Down Payment Assistance program that is best for every homebuyer.
• The right financing strategy depends on your individual situation, including:
• Income • Credit • Employment • Monthly Debts • Available Savings • Purchase Price • Property Location • Loan Type • Occupancy
• That's why it is important to review the complete financing picture.

 
FREE Down Payment Assistance Analysis
Find Out What You May Qualify For
 
Before assuming that you don't have enough money to purchase a home, let MGB Financial Services, Inc review your options.
We can help you determine:
✓ How much home you may qualify to purchase
✓ How much down payment you may need
✓ Whether a Down Payment Assistance program may be available
✓ Whether FHA, VA, USDA or Conventional financing may fit your situation
✓ Whether a low-down-payment or zero-down-payment option may be available
✓ What steps you may need to take to become purchase-ready
 
Take the First Step Toward Homeownership
You may be closer to owning a home than you think.
Don't let the down payment stop you before you know your options.

• Call MGB Financial Services, Inc today at 562-809-2643
• CHECK YOUR ELIGIBILITY
• GET PRE-QUALIFIED
• REQUEST YOUR FREE DOWN PAYMENT ASSISTANCE REVIEW

MGB Financial Services, Inc
30+ Years of Mortgage Experience
Residential Loans • FHA • VA • Conventional • Down Payment Assistance • Purchase • Refinance
www.MGBFinancial.com
 
Important Disclosure
Down Payment Assistance programs, grants and other homebuyer assistance programs are subject to availability, funding, geographic restrictions, income limits, purchase-price limits, borrower eligibility, property requirements, program guidelines and change without notice. Assistance may be structured as a grant, forgivable loan, deferred-payment loan, repayable second mortgage, shared appreciation loan or other financing arrangement. Not all programs are available in all areas and not all applicants will qualify.
Loan programs are subject to credit, income, property, underwriting and applicable program approval. Submission or receipt of an application does not constitute loan approval or a commitment to lend. This information is provided for general informational purposes only.