Even the idea of looking to buy a home can seem like an overwhelming + daunting task sometimes, especially since San Jose has 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 that can help ease the burden — especially for first-time homebuyers. Remember CalHFA programs have income eligibility requirements, where interested borrowers in Santa Clara County need to make less than $300,000 annually.

🏡 Down payments

Finding the cash to put a down payment on your home can be one of the biggest obstacles for some people. 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

As of this month, average mortgage rates in San Jose 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 and 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.