The current housing market is great for people in the market for a new house; however, many people don’t have access to the money necessary for a 20 percent down payment. Some states are trying to remedy that problem by making money available to buyers for down payments.
There are about 1,000 loans and grants available in the U.S., according to the National Association of Independent Housing Professionals. California has a couple that really stand out for their generosity. With some of the most expensive metropolitan areas to live in, these programs available for low to middle income residents make them more affordable.
California Housing Finance Agency’s School Facility Fee Down Payment Assistance Program
This program provides a grant to first time home buyers or people who haven’t owned a home in at least three years to buy new construction single-family homes or condominiums. The average amount of money provided is a little more than $5,000. There are restrictions that vary by county but there is no limit to the cost of the property. Buyers who stay in place for at least three years don’t have to pay back the grant.
California’s State Teachers’ Retirement System’s 80/17 Program
This program is available to members of the California’s State Teachers’s Retirement System, public school and community college staff. Under this plan, a person receives two mortgages, one for 80 percent of the mortgage and another for 17 percent. Members must put down 3 percent of their own money. There is no income limit and the combined mortgages can be up to $650,000. The interest rates are reasonable and payment of the second mortgage is deferred for five years.
Other states also have generous programs available so it is important to check with state and local agencies.