Just the idea of looking to buy a home can seem like an overwhelming + daunting task sometimes, especially with Sacramento having one of the nation’s most competitive housing markets.

We wanted to take a moment to highlight some of the programs available through the California Housing Finance Agency (CalHFA) that can help ease that burden, especially for first-time homebuyers. Remember — CalHFA programs have income eligibility requirements, with interested borrowers in Sacramento County needing to make no more than $225,000 annually.

🏡 Down payments

Coming up with the cash to put a down payment on your home can be one of the biggest obstacles to overcome for first-time buyers. Thankfully, the state has the MyHome Assistance Program, which offers a deferred-payment loan of up to 3.5% of the home’s purchase price or appraisal value (whichever is less) to help first-time buyers with down payments and closing costs.

🏡 Mortgages

At the time of writing, average mortgage rates in Sacramento are 7.475% APR, for a 30-year fixed-rate mortgage. The state offers four main types of mortgage loans for first-time buyers, with the standard being the CalHFA FHA Loan Program, a 30-year, fixed-interest loan. The CalPLUS FHA Loan Program has a slightly higher interest rate, and is combined with the Zero Interest Program that helps with closing costs.

There are specialized loans as well, such as the CalHFA VA Loan Program for military members and the CalHFA USDA Program for those looking to purchase homes in more rural areas.

🏡 Not just first-time buyers

If you or a loved one already owns a home + are looking to make space for more family members, the state will reimburse you up to $40,000 for creating a secondary unit — like a backyard cottage — on your property through the Accessory Dwelling Unit Grant Program.