Generating sufficient money for a down payment on your home loan can be one of the largest hurdles for many first-time homebuyers. That’s why CalHFA offers its California Homebuyer’s Downpayment Assistance Program (CHDAP), which provides several options for down payment and closing cost assistance. This type of assistance is often called a second or subordinate loan.

CHDAP subordinate loans are “silent seconds”, meaning payments on this loan are deferred so you do not have to make a payment on this assistance until your home is sold, refinanced or paid in full. This helps to keep your monthly mortgage payment affordable.

Contact one of our mortgage loan specialists today to see if you qualify for down payment and closing costs assistance from CHDAP.

Program Highlights

  • Home purchase with a .5% down payment
  • Below market interest rates
  • Reduced lender fees
  • Down payment assistance available in the amount of 3% of the sales price. 2.5% is applied to the down payment; the other .50% is applied to the closing costs
  • DPA second mortgage is silent – no monthly payment required
  • Online first-time home buyer education class available
  • Borrower’s income must not exceed the maximum levels set to be eligible for CalFHA and the down payment assistance program

Eligibility Requirements

  • You must be a first-time homebuyer, which is defined as someone who has not owned and occupied a home in the past 3 years.
  • You must be a U.S. citizen, permanent resident or other qualified alien.
  • You will need to live in the home you are purchasing for the entire term of the loan, or until the home is sold or refinanced.
  • CHDAP borrowers must complete homebuyer education counseling and obtain a certificate of completion through an eligible homebuyer counseling organization.