California home buyers have a few excellent programs to help you buy a home and offset the costs of building an accessory dwelling unit (ADU) — a backyard cottage for family and income.
The California Downpayment Resource Directory is a great place to see what you and the property you’re interested in might qualify for. Some of the programs seem too good to be true!
Here’s what’s available as of June 21, 2022:
1) The Forgivable Equity Builder Loan – Is this free 10% downpayment too good to be true?
When I first heard of the Forgivable Equity Builder Loan — which literally offers a free loan to California home buyers who meet certain requirements — I thought “NO WAY!”
The Forgivable Equity Builder Loan requires that the borrower continuously occupy the home as their primary residence for 5 years.
The goal is to give first-time homebuyers a head start on this with immediate equity in their homes via a loan of up to 10% of the purchase price of the home.
The loan is forgivable, meaning you don’t have to pay it back, if the borrower continuously occupies the home as their primary residence for five years. Learn more about this loan, and let me know if you successfully borrowed within this program!
2) California ADU Grant Program – Free Money to Get Your Property Ready For an ADU or Backyard Cottage
Clearly California is getting serious about increasing our housing stock!
The ADU Grant Program is yet another California grant program for low-to-moderate income home owners that falls in the “Is this too good to be true?” category.
This program helps home owners offset the high cost of preparing your property to build or install a backyard cottage, studio, shed, all otherwise known as an Accessory Dwelling Unit (that includes a living space, kitchen and bathroom).
Providing up to $40,000, the program helps people who qualify for a construction loan to offset “prevelopment costs” including site prep, architectural designs, permits, soil tests, impact fees, property survey, and energy reports.
The catch: This grant is for single-family properties that are owner occupied. Why oh why are the duplex owners left behind?!
Those costs can really add up, so the ADU Grant Program is a real boon for single-family property owners wanting to build an ADU. Subscribe to my YouTube channel for updates on ADU happenings in California.
3) Golden State Finance Authority (GSFA) downpayment and mortgage assistance on owner-occupied single family and multi-family homes
Golden State Finance Authority (GSFA), is a California agency with programs to help “low-to-moderate income homebuyers in California purchase a home by providing down payment and/or closing cost assistance (DPA).”
They partner with local and national financial and lending institutions — including banks, mortgage brokers, and new construction mortgage companies such as Pulte Mortgage and Lennar Mortgage — to provide affordable homeownership programs with a focus on low-to-moderate income families in California.
The GSFAs programs tend to be limited to owner-occupied primary residences only. Meaning, it’s not for pure investors. There is no first-time homebuyer requirement and the qualifying guidelines are flexible.
FHA and VA borrowers have no income limits to qualify! Other borrowers will find that income limits to be eligible vary depending on your California county.
GSFA-approved lenders can help you close quickly (sometimes as fast as 14 days) and take advantage of these downpayment assistance programs.
Get the latest downpayment assistance program information from GSFA. (Note: The above information is subject to change!)
Help for California home buyers to pay your down payment, pay down your mortgage and pay your closing costs on 30-year fixed mortgages. (Visit the Golden State Finance Authority website for the latest accurate info: https://www.gsfahome.org )
Usted puede calificar para $10,000 en asistencia con el pago inicial.
