Saving up for any down payment can be a huge financial hurdle for specific California home buyers. Due to this, people always look for ways to purchase a house with little or absolutely no money down.
If you need to buy a house in California with no down payments, you have to take help from specific strategies. In this guide, you will learn how you can purchase a home in California with no down payments.
How Do You Purchase a House in California With No Money Down?
1. You can use down payment gifts:
It doesn’t matter what form of mortgage loan you choose to purchase a house; you will be allowed to use gift money to cover your down payment. These are usually the gifts that are given to you by family members, employers, or other approved donors to cover all the investment needs on your loan.
Before you think of ways to avoid a house down payment, there are mortgage programs that include an FHA loan. With this, your entire down payment can easily be gifted from a family member or other approved sources. This can allow the buyer to buy a house in California with no money down.
There are also non-FHA or conventional loans that can allow this too. The only stipulation to keep in mind is that the money given to the third party must be a gift. It is important to ensure that it is not a short-term loan in disguise. As a matter of fact, the donor must give a ‘gift letter’ that states that they do not expect any kind of repayment.
With the help of this strategy, a down payment is still going to be made. But before you buy a house in California, know that the payment will be made by someone else other than the buyer. This is one of the ideal ways to purchase a house in California with no down payment from your own pocket.
2. VA Loans for the military
Before you learn more about zero down payment in California, A VA-guaranteed home loan can easily account for around 100% of the purchase price. This program will ensure that there is no requirement for a down payment, and this is needed for loans that will amount to more than 80% of the house’s value. You can contact experts to learn more about VA loans.
3. Down payment assistance programs
You can find programs in the state that are created to help home buyers offset the down payment cost. The California Homebuyer’s Down payment Assistance Program, or CHDAP, is one of the best examples of this.