๐ก California First-Time Homebuyer Loan Guide (2025 Edition)
๐ฒ Call or message us today to find out what you qualify for! Text OR Call (714) 380-4140
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Your Step-by-Step Path to Homeownership with the Best Loan Options + Down Payment Help
Buying your first home in California can feel overwhelming — especially with high prices, changing mortgage rates, and confusing loan terms. But the good news is: you don’t have to do it alone. With the right guidance, loan program, and support, you CAN become a homeowner, even with a limited down payment or average credit.
In this blog, we’ll walk you through the full process of getting a first-time homebuyer loan in California, what documents you’ll need, and how down payment assistance (DPA) can make it possible.
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Who Is Considered a First-Time Homebuyer in California?
You qualify as a first-time buyer if you haven’t owned a home in the last 3 years. This includes:
Renters transitioning to ownership
Past homeowners returning to the market after renting
Couples where only one person has owned before
๐งพ What Documents Will You Need?
To get pre-approved and apply for a loan, you’ll need:
๐ Income Documents
2 years of W-2s or 1099s
2 years of tax returns
Recent pay stubs (last 30 days)
๐ฆ Asset Verification
2 months of bank statements
Retirement/investment accounts (if applicable)
๐งโ๏ธ Identification & Credit
Valid ID (driver’s license or passport)
Social Security number
Credit score of 620 or higher for most FHA or DPA programs
๐ช Step-by-Step First-Time Buyer Loan Process
Schedule a Free Consultation
Speak with a licensed loan officer to understand your options. (Sun Mortgage is here for you!)
Get Pre-Approved
We'll review your credit, income, and eligibility.
Search for Your Home
Get connected with a local agent and start touring homes within your budget.
Make an Offer & Enter Escrow
Once your offer is accepted, the loan goes into underwriting.
Sign & Close
Get your keys and celebrate your new home!
๐ธ Down Payment Assistance (DPA) Programs in California
Many first-time buyers can qualify for grants or second loans to help cover down payments and closing costs. Popular California DPA programs include:
๐ CalHFA MyHome Assistance Program
Deferred-payment second loan
Can be used with FHA or Conventional
๐ GSFA Platinum Program
Offers non-repayable grant
Good for lower-income buyers or those in certain professions (teachers, firefighters, etc.)
๐ Chenoa Fund
Nationwide program offering up to 3.5% in down payment help
Can work with FHA loans (even if your credit score is as low as 620)
๐ Best Loan Programs for First-Time Buyers in California
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FHA Loan
3.5% down payment
Minimum credit score of 580–620
Flexible guidelines — ideal for many first-time buyers
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VA Loan (for veterans or military)
Zero down payment
No mortgage insurance
Lower rates than FHA or Conventional
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USDA Loan
Zero down for eligible rural areas
Income limits apply
Great for buyers in outskirts of cities or rural counties
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Conventional 97 Loan
3% down
Lower PMI than FHA
Requires stronger credit (680+ preferred)
๐ก Tips for First-Time Homebuyers in California
๐ Start Early – Get pre-approved before house hunting
๐ Improve Credit – A few extra points can save you thousands
๐ฌ Ask About DPA – Many buyers don’t know they qualify
๐ Be Prepared – Keep your job and finances steady during the process
๐ค Work With a Local Expert – A trusted mortgage pro (like us!) can help you get the best deal
๐ฌ Final Thoughts
Becoming a homeowner in California may seem tough, but with the right loan, some down payment assistance, and a solid game plan, it’s totally within reach.
Since 2007, Sun Mortgage has helped hundreds of first-time buyers across California unlock the doors to their first homes. Whether you need an FHA Zero Down, VA loan, or CalHFA assistance, we’re here to guide you — step by step.
๐ฒ Call or message us today to find out what you qualify for! Text OR Call (714) 380-4140
Need A FREE Estimate Apply Here
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