Buying your first home in Sacramento, CA, can feel overwhelming, but California offers programs designed to make homeownership achievable. If you’re a first-time home buyer in Sacramento, understanding the resources available is crucial. The California Housing Finance Agency (CalHFA) provides various loan programs and assistance to help individuals and families achieve the dream of owning a home in California, including Sacramento.
CalHFA doesn’t offer loans directly. Instead, they partner with approved lenders who will guide you through the application process for a CalHFA home loan. Each CalHFA program has specific eligibility criteria regarding income limits, credit scores, and other factors. It’s important to review the details of each program to see which one best fits your situation.
To get started, it’s recommended to use CalHFA’s online resources to estimate your potential monthly payments and explore which programs you might be eligible for.
Exterior of a modest single-family home with a lawn and trees
Generally, all CalHFA programs share some basic borrower eligibility requirements:
- You must meet the credit score and income limits set by both the CalHFA-approved lender and any applicable mortgage insurer. Income limits are specific to CalHFA and may vary by county.
- The home you purchase must be your primary residence.
- Completing a homebuyer education counseling course is mandatory for CalHFA borrowers. You’ll need to obtain a certificate of completion from a HUD-approved counseling organization.
- For CalHFA’s MyHome Assistance Program, you must be a first-time homebuyer.
Remember to check the specific borrower eligibility details for each individual CalHFA loan program to understand all requirements, including income limitations.
Homebuyer Education: A Key Step for Sacramento First-Time Buyers
CalHFA emphasizes the importance of homebuyer education for the long-term success of homeowners. Therefore, first-time homebuyers utilizing CalHFA programs are required to complete a homebuyer education and counseling course.
Who needs to take this course?
Only one first-time borrower who will be living in the home is required to complete the education course per loan transaction.
How can you fulfill this education requirement?
- Online Course: CalHFA accepts the eHome’s eight-hour Homebuyer Education and Counseling course. This is currently the only online course that meets CalHFA’s requirements due to its inclusion of a mandatory one-hour, one-on-one counseling follow-up session. There is a fee of $99 for this course. Other online courses that do not include the 1-on-1 counseling session are not accepted.
- In-Person or Virtual Classes: You can also attend live Homebuyer Education and Counseling sessions either in person or virtually through NeighborWorks America or any HUD-Approved Housing Counseling Agency. Fees for these courses may vary depending on the agency.
Defining “First-Time Homebuyer” in Sacramento
Understanding the definition of a “first-time homebuyer” is essential to determine your eligibility for specific CalHFA programs like MyHome. CalHFA defines a first-time homebuyer as someone who has not owned and lived in their own home in the past three years. This definition also includes individuals who have not lived in a home owned by a spouse within the last three years.
If you fall into either of these categories, or if you have never owned a home, you are likely eligible for CalHFA’s first-time homebuyer programs. It’s best to confirm your specific situation with a CalHFA Preferred Loan Officer for personalized guidance and to explore any potential exceptions.
While the original article also mentions “First-Generation Homebuyer” in relation to a specific program, it’s less broadly applicable. For most first-time homebuyers in Sacramento seeking general information about CalHFA programs, the above points are the most pertinent.
If you have more eligibility questions, CalHFA provides an Eligibility Calculator on their website for initial assessment.
For further assistance and to start your journey to homeownership in Sacramento, you can contact CalHFA directly or reach out to a CalHFA-approved lender.
Contact CalHFA:
Call Toll Free: 877.9.CalHFA (877.922.5432)
