Free California homes: zero-dollar program.
- California’s My Access Program: Offers first-time homebuyers the opportunity to purchase a home with zero upfront costs by covering down payments and closing costs.
- Program Components: The program combines three existing programs:
- Cal FHA Loan: Provides mortgages to qualified first-time homebuyers with income limits varying by county.
- My Home Program: Covers the down payment (3-3.5%) with a 1% simple interest loan, payable upon sale or refinance.
- My Access Program: Covers closing costs up to 2.5% of the purchase price, also at 1% simple interest, payable upon sale or refinance.
- Eligibility Requirements:
- First-Time Homebuyer: Has not owned a home (or lived in a home they owned) in the last three years.
- Income Limits: Vary by county; check the provided link for your county’s limit. Income limits can restrict affordability in high-cost areas.
- Strategic Use of the Program:
- Maximize Loan Amounts: Utilize the maximum amounts available from My Home and My Access programs to increase your down payment (potentially reaching 20% to avoid PMI) or improve your offer’s competitiveness.
- Competitive Offers: A larger down payment makes your offer more attractive to sellers. Using the loans to increase down payment can be advantageous.
- Agent Commission: Paying the agent’s commission (a closing cost) through the My Access loan can create a more competitive offer (especially when using a low-commission agent like the speaker).
- Recommendation: Consult the provided links for income limits and lender information, and consider working with a low-commission real estate agent to maximize your purchasing power.
