California First-Time Homebuyer Loan Guide 2025 | FHA, VA, DPA

Published on Jul 10, 2025 | first-time homebuyer loan CA, California down payment assistance, FHA loan California, VA zero down loan, buy a home with no money down, home loan process, Sun Mortgage, CalHFA, USDA loan, home buying tips, mortgage for first home, loan officer California
California First-Time Homebuyer Loan Guide 2025 | FHA, VA, DPA
California First-Time Homebuyer Loan Guide 2025 | FHA, VA, DPA

 
๐Ÿก California First-Time Homebuyer Loan Guide (2025 Edition)

๐Ÿ“ฒ Call or message us today to find out what you qualify for! Text OR Call (714) 380-4140

 Need A FREE Estimate Apply Here

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.

 
โœ… 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
 
๐Ÿงพ What Documents Will You Need?
To get pre-approved and apply for a loan, you’ll need:

๐Ÿ“„ Income Documents

2 years of W-2s or 1099s
2 years of tax returns
Recent pay stubs (last 30 days)
๐Ÿฆ Asset Verification

2 months of bank statements
Retirement/investment accounts (if applicable)
๐Ÿง‍โ™‚๏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
 
๐Ÿชœ 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!
 
๐Ÿ’ธ 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:

๐ŸŒŸ CalHFA MyHome Assistance Program
Deferred-payment second loan
Can be used with FHA or Conventional


๐ŸŒŸ GSFA Platinum Program
Offers non-repayable grant
Good for lower-income buyers or those in certain professions (teachers, firefighters, etc.)


๐ŸŒŸ 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)
 
๐Ÿ† Best Loan Programs for First-Time Buyers in California


โœ… FHA Loan
3.5% down payment
Minimum credit score of 580–620
Flexible guidelines — ideal for many first-time buyers
โœ… VA Loan (for veterans or military)
Zero down payment
No mortgage insurance
Lower rates than FHA or Conventional
โœ… USDA Loan
Zero down for eligible rural areas
Income limits apply
Great for buyers in outskirts of cities or rural counties
โœ… Conventional 97 Loan
3% down
Lower PMI than FHA
Requires stronger credit (680+ preferred)
 
๐Ÿ’ก Tips for First-Time Homebuyers in California


๐Ÿ”‘ Start Early – Get pre-approved before house hunting
๐Ÿ“ˆ Improve Credit – A few extra points can save you thousands
๐Ÿ’ฌ Ask About DPA – Many buyers don’t know they qualify
๐Ÿ“ Be Prepared – Keep your job and finances steady during the process
๐Ÿค Work With a Local Expert – A trusted mortgage pro (like us!) can help you get the best deal

 
๐Ÿ’ฌ 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.

๐Ÿ“ฒ 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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