California First Time Home Buyer Loans

If you’re a first time home buyer in California, you may be unaware of the opportunities that you face.  Sometimes financing a home purchase simply seems stressful and confusing.  It doesn’t have to be this way.  You have a number of options to choose from.

California First Time Home Buyer Information

It’s not hard to take out a mortgage if you know what you need and who to talk to.  But these are sometimes the most difficult things to figure out.  If you’re wondering what mortgage option will best meet your needs and how to find a lender who can help you fund it, start with the basics.  Learn the ropes.  Know your options and study the market.  We’ve created a detailed first time home buyer checklist to help you understand how the home purchase mortgage process works.  Apart from that, the basic steps are listed here.

• Determine how much money you need.  Simple enough, right?  Maybe.  This step can be complicated for many first time home buyers, who, without related experience, are going in blind.  Determine your income level and get prices on homes that match what you’re looking for.  This is the best way to start.
• Research your loan options.  The only way to find the mortgage loan that meets your needs is to study the marketplace and find out what’s available.  As a first time home buyer, you have the option of pursuing an FHA loan.  We’ll discuss this loan option more below.
• Check mortgage rates.  Find out where mortgage rates currently rest.  But don’t just ask your local bank.  Take the time to compare mortgage rates offered by at least four or five different local lenders to gain a broad view of the market.
• Know your own credit score.  Don’t step into a lender’s office unless you know your own financial situation, including your credit history.  Your credit score is one of the largest deciding factors that lenders will analyze to determine whether or not you should get a mortgage.
• Don’t go any further until you’re preapproved.  Yes, we mean it.  Don’t even look for a home until you’ve been preapproved for the estimated loan amount you’ll need.  Preapproval is an agreement made between a lender and a borrower, dependent on the borrower’s income, employment, and credit score.  The last thing you want to do is find the home of your dreams and then find out you can’t get a mortgage for it.

The above steps are the most crucial steps to take to get a mortgage for your home purchase.  Check out our checklist, though, for more information and more detailed instructions.

If you want to calculate what you’ll need to pay each month on your new mortgage, use the calculator below.

1st Time Home Buyer Loan Programs

As mentioned above, you have the option of pursuing a California FHA loan to fund your new home if you choose.  These loans are government backed through the Federal Housing Administration and are reserved exclusively for first time home buyers, buyers with poor credit, and buyers with low income.

The benefits?  A very low down payment and significant credit and income leniency.  In other words, you don’t have to be rich or have a great credit history to buy a home through the FHA.  You will have to purchase private mortgage insurance, but this cost is often worth the added benefits of the FHA mortgage.  You can’t borrow past a certain amount, though, so check the California FHA loan limits for your county to make sure you qualify.

You can find additional information about FHA loans on the California page of the FHA website.

About California

California is a large state with a high population and a major global influence.  Many important cities are located in the state, including Los Angeles, San Francisco, San Jose, Sacramento, and San Diego.  California is renowned for its impact in the tech, entertainment, and agricultural industries.

Open land and wilderness areas abound, as well as many famous state parks.  The value of California real estate is extremely high compared to many parts of the nation, and this can make it difficult for first time home buyers to purchase their first homes.  Find out what financing options are available to you.

Rich Iacovetta - RMI Lending
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