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buy house in california with no down payment

Can You Buy a House in California With No Down Payment?

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? 

There are various ways to purchase a house in California with no money down. For example, you can acquire the necessary funds required for the down payment from a family member as a gift. This can easily be allowed under multiple mortgage loan programs. 
Military personnel can easily purchase a house in California with no down payment using specific loan programs. There are various strategies that can help you purchase a house in California with no money down. 
Some of the strategies are as follows:  

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

The VA loan program is great as it gives plenty of benefits to brave men and women in uniform. You will benefit greatly from this program if you are military personnel. This is a program that can allow eligible borrowers to purchase a house in California with no money down. 

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.


Associate with Khan Home Loan

No one knows what the future beholds for us. What we can do is make the best assumptions based on facts, data, and analysis. This is precisely the situation of realtors in the current housing market in 2023. You must understand what to anticipate and the best way to traverse uncharted territory to assist your clients successfully. That’s it! 
If you are thinking of purchasing or refinancing, call us at 562-331-8994 or email us at:
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