THINK YOU CAN’T BUY A HOME?
Homeownership is more attainable than ever before with the amazing 3 percent down payment California. With our MyCommunityMortgage® conventional loan, you may be able to buy your first home with as little as 3% down.
- Ideal for first-time home buyers who can’t afford to make a large down payment but would otherwise qualify for a mortgage – certain income limits apply
- 3% down payment and closing costs can be funded with certain gifts; or with grants or loans from a nonprofit or government agency
- Mortgage insurance may be canceled over time
- Lower mortgage insurance requirement
Who is eligible for a 3 percent down payment MyCommunityMortgage®?
A 3% down payment mortgage California is best suited for responsible homebuyers who may not have the ﬁnancial resources to make a large down payment but would otherwise qualify for a mortgage. Homebuyers will need to meet other underwriting requirements, have income that falls within the program limits, and document their income. We can help you understand your eligibility.
What are the requirements for the 3 percent down payment with MyCommunityMortgage®?
To be eligible to make a 3% down payment with MyCommunityMortgage requires that
- at least one buyer is a ﬁrst-time homebuyer
- the home being ﬁnanced is a one-unit property (including townhomes, condos, co-ops, and PUDs) and not a manufactured home
- you plan to occupy the home as your primary residence
- the mortgage has a ﬁxed rate (adjustable rate mortgages require a larger down payment)
- you income does not exceed certain income limitations
- you complete homebuyer education and counseling before purchasing the home
- none of the borrowers own any other residential property.
I’ve owned a home in the past, am I still eligible for the 3 percent down payment?
To be eligible for this 3% down payment option, at least one buyer must be a ﬁrst-time homebuyer. In this case, “ﬁrst-time homebuyer” means that you haven’t owned any residential property in the past three years or, if you are buying the home with someone else, that at least one of you hasn’t owned in the past three years.
Can I use funds I’ve received as a gift or a grant to help pay some or all of my down payment?
Yes, certain funds you’ve received as a gift from a relative, a grant, or from other sources can be used toward your down payment and closing costs. There may be down payment assistance funds available in your area, too. Research your options — funds may be available from your local housing ﬁnance agency, your employer, nonproﬁt agencies, and others. Ask us for more details.
Will I need to pay mortgage insurance?
If your down payment is less than 20% of the home’s purchase price, you will need to pay Private Mortgage Insurance (PMI), generally as part of your mortgage payment each month. Unlike the mortgage insurance premium required on an FHA loan, you may be able to cancel PMI after you reach 20% equity in your home—either through paying down your mortgage over time or if the value of your home increases while you own it—which over time could save you money.
Can I make a 3 percent down payment on an ARM loan?
No, the 3% down payment option is available on ﬁxed-rate loans only. MyCommunityMortgage adjustable rate mortgages (ARMs) require a down payment of at least 10%.
Call us today at 424 225 2167 and get pre-approved for one of our many First Time Buyer Loan Programs! One of our mortgage professionals will help you get the best possible loan solution for your situation. We’ll be with you every step of the process and not hand you off to someone else.