The Situation
A young couple making $72K combined had only $3,000 saved — nowhere near enough for even FHA's 3.5% down on a $400K home ($14,000). They assumed homeownership was years away.
What Programs Were Available?
After reviewing their full financial picture, here's what they qualified for:
- FHA: Min credit 580, 3.5% min down, PMI required
- Conventional: Min credit 620, 3% min down, PMI required
- USDA: Min credit 640, 0% min down, PMI required
How We Solved It
California has multiple down payment assistance programs most buyers don't know about. We used CalHFA's MyHome Assistance Program combined with CalPLUS FHA.
CalPLUS FHA provides a slightly higher rate (about 0.25% above standard FHA) but comes with a Zero Interest Program (ZIP) grant covering closing costs.
MyHome provides a deferred-payment junior loan up to 3.5% of the purchase price. Combined: down payment covered, closing costs covered.
Out of pocket after DPA: about $1,500 for appraisal, inspection, and earnest money.
The Result
Purchased a $380,000 townhome in Murrieta. Monthly payment: $2,720 (slightly higher due to CalPLUS rate, but they're HOMEOWNERS). Total out-of-pocket: $1,500.
Key Takeaway
If you're a first-time buyer in California making under the income limits, down payment assistance can cover your ENTIRE down payment and most closing costs. The rate is slightly higher but the alternative is paying rent for 5 more years while you save. Do the math — DPA wins.
Think You Might Be in a Similar Situation?
Every borrower's scenario is different, but the process is the same: we look at your full picture, find the right program, and create a plan. Whether it's credit repair, down payment assistance, or a specialized loan program — there's usually a path.
Schedule a free consultation to see what you qualify for. No obligation, no pressure — just honest answers about your options.
Contact Aditya Choksi | NMLS #2055084 | (949) 478-7641
This scenario is based on a real borrower situation. Names, exact figures, and identifying details have been changed to protect privacy. Your qualification depends on your specific financial situation.