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2 Great California Down Payment Assistance Programs

Barry Krevoy from Finance of America Mortgage is here to discuss two great programs that help buyers who can’t quite afford a down payment: CHDAP and the Golden State program.

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Recently, one of my clients asked me about a lease on a property. When I asked if he was interested in buying it, he said that he couldn’t afford the down payment. Today, Barry Krevoy from Finance of America Mortgage is here to discuss different down payment assistance programs available in California.

One great down payment assistance program is called CHDAP, which you can use with a conventional or FHA loan. You could also look at the Golden State program, which is actually a grant program. If you go with the Golden State program, that money does not need to be paid back.

Both of these programs are income-driven, so you need to meet certain income caps in order to qualify. Some of these limits vary depending on which county you live in. For example, in Orange County, if you are single, you have to make less than $85,450 a year to qualify for the CHDAP program, which provides down payment assistance up to 4% of the purchase price.

As for the Golden State program, single homeowners have an income cap of $97,750.

If you have more than one person in the home, CHDAP income requirements go up to $97,650 for two people, $109,850 for three, $122,050 for four, and $131,000 for five. It doesn’t matter whether you are married, have two kids, three kids, or your mother-in-law has moved in. CHDAP looks at the number of people living in the home, not the number of dependents you claim on your taxes.

You can get into a home with little to no money down.

Many millennials just out of college would definitely qualify for this program. If you are making less than $100,000 a year, you won’t be out looking at $700,000 homes. CHDAP is a great program to help millennials into townhomes or small, single-family residences. It can also help people get into a home when they make good money but haven’t saved enough for a down payment yet.

The only downside to CHDAP is that you will get a slightly higher interest rate. However, there is a no prepayment penalty. If you are on the loan for at least six months, you can always refinance later to take advantage of a lower interest rate. Barry has helped many people do just that.  

If you use an FHA loan or conventional loan, the lender can give you a credit to help with closing costs. However, that is not the case with the Golden State program or with CHDAP. If you do use either of these programs, your agent could negotiate for the seller to give you a closing cost credit instead of the lender.

So, even though you might not have enough money for a down payment, there are options available to help you get into a home. If you have any other questions for Barry, you can reach him at or 949-735-4009. You can also visit his website,

As always, if you have any real estate questions, please don’t hesitate to reach out to me. I would be happy to help you!

Debunking 8 Common VA Loan Myths

If you’re a veteran looking to purchase a home, there are a few myths about the VA loan benefit that I’d like to clear up for you.

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I just closed a deal with one of my veteran clients not too long ago and I realized that there is a lot of confusion out there about VA loans. Today I’d like to debunk some of these myths for you so that you know what to expect when obtaining a VA loan.
Myth #1: Veterans have only one chance to use their VA loan benefits. This is false. This loan can be used more than one time, allowing you to purchase and sell homes as you please.
Myth #2: VA loans can only be used to buy a house. This is also untrue. You can actually use a VA loan to refinance a property, in some cases, up to 100% of the value of the property.
Myth #3: VA loans are small and only ideal for starter homes. In reality, if you want to buy a $1.5 million home, a VA loan will actually let you do that. The one thing to remember is that you’ll have different limits on the VA loan depending on the state and county that you’re in. For instance, in Southern California, LA, and Orange County, the limit is $625,500; you can purchase a million-dollar property; you’ll just have to make up the difference.
Myth #4: VA loans take too long to process. For real estate agents out there that like to promise a 30- or 45-day close of escrow, it’s possible to do this for VA loans, but I would suggest aiming for the 45-day close just because there are not a lot of VA loan appraisers in certain counties and states throughout the country. For this reason, it may take a property a bit longer to be appraised, but the deal should close fairly easily afterward.

It may take a bit longer to get a VA loan appraisal.
Myth #5: Veterans have to be discharged or retired to use their VA loan benefit. Active veterans can actually use their benefit, even if they’re going to be discharged in the near future.
Myth #6: Veterans serving away from home or overseas cannot get a loan until they can return to occupy the property. If a veteran is active and deployed, as long as they are back within that year or have a spouse that would occupy the home while they are serving, this benefit is still available to them.
Myth #7: Members of the Reserve or the National Guard are not eligible. This is also false. As long as they were honorably discharged after six years of service, members of the Reserve or National Guard can use their benefit.
Myth #8: VA loans require perfect credit scores. Some lenders would ideally like to see a credit score of about 620 or higher, but there are lenders out there who will do it for a credit score as low as 580.

Don’t believe these common myths about VA loans! If you have any other questions about VA loans or Southern California real estate in general, give me a call, shoot me a text, or send me an email. I’d be happy to help you!