• Many local loan programs throughout California provide financial assistance to first-time homebuyers.house image by Cora Reed from Fotolia.com
  
  California first-time homebuyer programs were created to help stimulate the real estate market by providing financial assistance to people who want to purchase homes. Some loan programs help a homebuyer cover the down payment and closing costs, while other programs offer affordable low interest rate mortgages. First Time Homebuyer Grants in California provides a comprehensive listing of programs that offer financial assistance in various cities throughout the state.
  
  

California Homebuyer's Downpayment Assistance Program

• The California Homebuyer's Downpayment Assistance Program (CHDAP) offers loans to cover the down payment or closing costs for first-time homebuyers. The loan finances up to 3 percent of the purchase price or the appraisal value of the home, whichever is less. This loan may be combined with a California Housing Finance Agency (CalHFA) or a non-CalHFA first mortgage loan. The borrower has to contribute at least 3 percent of the sale price and has to undergo homebuyer education counseling. The American Dream Down Payment Act gives grants to local cities throughout California so that these types of loans can be given to low- and middle-income families.
  
  

Affordable Housing Partnership Program

• The Affordable Housing Partnership Program (AHPP) provides mortgages to people who fit within the low-income bracket. The income limits are based on family size and the county in which the house is located. The home must be a single-family residence. The loan is only applicable for homes that will be owner-occupied. This program cannot be used for rental or investment properties. AHPP lists the income and sale price limits set by each county to help a homebuyer determine if they will be eligible.
  
  

CalHFA Community Stabilization Home Loan Program

• This loan program offers a 30-year mortgage with a fixed low interest rate for bank-owned properties. One hundred percent financing is available through this program. A homebuyer can be eligible for this loan and also receive financial assistance through a down payment program that will cover the closing costs, such as CHDAP. The property must be occupied by the owner. The borrower is required to complete homebuyer education counseling. A person who is not a first-time homebuyer can qualify for this loan if they purchase a home in a federally designated low-income neighborhood.
  
  

Cal30 Conventional Loan Program

• The Cal30 Conventional Loan Program offers a fixed interest rate, 30-year mortgage. The loan cannot exceed 95 percent of the appraised value for the property. A borrower who qualifies for this loan also can receive a down payment assistance loan that will cover closing costs. If a borrower uses a loan to cover the closing costs, she will be required to contribute 3 percent of the sale price or appraisal value for the property, whichever is less, from her own funds. If the Cal30 loan is greater than 80 percent of the property value, the borrower also will have to purchase private mortgage insurance. CalHFA lists the full eligibility requirements for all of their loans.