This is huge news to help address the affordability challenges that are prevalent in much of California.  For those looking to buy their first home that haven’t been able to save enough for a down payment, Dream for All can help assist with covering down payment requirements and closing costs.

As with most CalHFA loan programs, there are restrictions and unique qualifying considerations to meet the Dream for All program:

• Buyers must be first time home buyers, defined by CalHFA as those buyers who have not owned a primary residence within the most recent 3 year period
• Buyers must meet county area median income requirements (income limits vary by county)
• The Dream for All program is a 2nd mortgage that ‘piggybacks’ on to a conventional first mortgage loan, which must be a CalHFA first mortgage
• Funds are limited and program is set to end when allotted funds are exhausted
• California home buyers only, property must be a primary residence

With MasonMac’s Dream for All offering, a 2nd mortgage is set up that covers down payment and closing cost requirements, and the borrower does not have to make payments on this second mortgage.  Since it is a shared appreciation program, the loan is due to be repaid when the home buyer sellers their home, refinances, or pays their first mortgage in full.  When the loan is repaid, the original amount borrowed is repaid, and depending on the borrower’s income in relation to their area median income, a percentage of the earned home appreciation is also paid back to CalHFA.

Due to the shared appreciation, the program may not be financially beneficial to everyone, however it’s a tremendous option for those with low to moderate income living in high cost areas since it eliminates the burden of saving a large amount of money for down payment or closing costs.

Want to know if MasonMac’s CalHFA Dream for All program is right for you?  Give us a call and we’ll be happy to answer any questions you may have about this or any of our other down payment assistance options.

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Everyone has heard that “when you rent, you pay your landlords mortgage”, and phrases similar to “home ownership is the key to building wealth”.  We believe this is true, but how can someone struggling to be a home owner come up with that down payment in markets that are very expensive?  Well, buying a house with no down payment is not only possible, but with the right lender, it can be easy!

A down payment should’t block your home ownership dreams

The answer for some people lies in specialized programs that don’t have down payment requirements.  VA loans for eligible veterans is a program that allows up to 100% financing.  That means no down payment required.  Even better, it allows a seller to contribute up to 4% of a home price to the veteran to help pay closing costs, so theoretically, under the VA program, a veteran could buy a home with $0 out of pocket.  USDA is another program available with $0 down payment requirement.  USDA is a program available to low and moderate-income buyers in designated rural areas (many are closer to cities than you might think!), and like VA loans, allows for 100% financing.  VA and USDA loans are two options to consider when buying a house with no down payment.

If you’re not eligible for either of those programs, you’re still in luck!  There are many down payment assistance programs available that will help provide the funds needed to cover down payment requirements.  HUD has approved many programs – both local and national – that will provide money to qualifying borrowers for down payment and sometimes even closing costs for home purchases using FHA financing.

MasonMac offers down payment assistance (DPA) programs in every state in which we’re licensed, and we have many different types of DPA – from local bond money to national DPA programs, we ensure down payment funds don’t prevent you or your family from enjoying the financial and other perks of home ownership.  Bottom line is a down payment shouldn’t stop you – buying a house with no down payment is an option you likely have!

Questions about DPA and how it can help you achieve your home ownership dreams?  Reach us at home@masonmac.com with any questions you have or anything we can help you with, or ask an expert here.

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