Prime Real Estate in Los Angeles | Vic & Christine Costello A- List Homes

2014 Guide to California Buyer Assistance Loans and Grants

The State of California is committed to encourage responsible home-ownership to as many families as can possibly qualify.

Benefits are that new home buyers have several options for down payment and closing cost assistance available now.

The following programs are now funded, so the grant is always available.

Some of these programs have been recently reinstated and have undergone positive adjustments to help you purchase your home.

California Housing Finance Agency

For more info contact: Brian Mallasch at Wells Fargo…916-235 9394 (

Commonly known as CalHFA, the State of California has recently gone through significant upgrades to it’s programs.

Cal-Plus with ZIP (Zero Interest Program)

For more info contact:  I don’t have a referral source for this program. If you know of someone, please have them contact me.

CalPlus is an FHA loan offered by CalHFA where the interest rate is set by the program.

Buyers are required to use CalHFA’s first mortgage to qualify for the “Zero Interest Program”.

ZIP is automatically approved once you are approved for the first mortgage.

The ZIP Program can be applied to down payment assistance or closing costs.

ZIP assistance is the equivalent of 3.5% of the first loan amount, including upfront mortgage insurance.

ZIP is a silent second mortgage that does create a lien against the property.

There is no payment due for the life of the first loan, or until you sell or refi.

You can get more information, and even inquire about qualifying for a CalPLUS with ZIP by going to

California Home Buyer Down Payment Assistance Program

For more info contact: Brian Mallasch at Wells Fargo 916-235-9394 (

CHDAP is a flexible buyer assistance program available to California home buyers that meet income limit requirements.

CHDAP is a silent 2nd mortgage that does not require payments for the life of the 1st loan, or until the 1st mortgage is either refi’d or paid off through COE.

The flexibility of CHDAP allows an eligible buyer to use up to 3% of the Purchase Price (or appraised value, whichever is lowest), and does carry an interest rate which has historically been far below market.

This loan accrues simple interest which is paid when the loan is paid off.

You can get more information, and even inquire about qualifying for a CHDAP assistance loan by going to

Extra Credit Teacher Program

For more info contact: I don’t have a referral source for this program. If you know of someone, please have them contact me.

The ECTP program was discontinued for a couple of years as the real estate market struggled to recover over the past 7 years.

Since being reintroduced, this program is super-charged to include more buyers than before.

ECTP is a silent second mortgage that can be used in addition to a CalHFA first mortgage (CalHFA FHA or Cal-Plus with ZIP).

Eligible buyers include any employee of, or employee of a district directly serving a high priority school with a State of California API (Academic Performance Index) of 5 or less.

Homeowners that remain working in an eligible API school after 3 years will have the interest of the ECTP second completely forgiven, and converted to a zero interest loan for the remainder of it’s life.

You can get more info, and inquire about for a ECTP loan by going to

Homebuyer Grants – No Interest | Not Paid Back
CHF Platinum Grant

Editor’s note: Brian Mallasch at 916-235-9394 ( Fargo.

Similar to the ZIP and ECTP programs, this home buyer assistance grant is attached to a first mortgage offered by the program.

You may choose between a 3% grant or a 5% grant depending on the interest rate you choose on your first mortgage.

Grant is based on a percentage of the sales prices or appraised value, which ever is lowest.

Eligible mortgages are FHA, VA or USDA loans offered by the CHF program.

Interest rates are set and controlled by the program and tend to be slightly higher than market rates.

This is the “catch” if you call it that. Buyers get help covering a down payment and closing costs, and pay it back over 30 years with a little higher interest rate.

More info is available for qualifying for a CHF Platinum Grant by going to

Southern California Housing Finance Agency Home Buyer Grant

Editor’s note: I don’t have a referral source for this program. If you know of someone, please have them contact me.

The SCHFA Grant is available to owner occupying buyers living in Orange and Los Angeles County (exclusions include City of Los Angeles).

Borrowers must qualify for first mortgage offered by program. Eligible programs include FHA, VA and USDA.

This home buyer Grant can be used as down payment or closing costs up to 4% of the first mortgage amount.

Leave a Reply

Your email address will not be published. Required fields are marked *